The Government has taken notice of the economic problems that millions of homeowners across the country are facing and have enacted the $75 billion “Making Home Affordable” plan to assist these homeowners. This mortgage refinance or modification plan allows homeowners to obtain a 4% fixed rate mortgage, and save their home from foreclosure.Homeowners are losing their jobs, losing their income, facing huge debts, or are in bad mortgages and this Government backed plan will help them save hundreds of dollars every single month. This money would help ensure that the homeowner gets their financial problems in order, save money for the future, or pay off other high interest debts. Also, a lot of homeowners now are already in the foreclosure process. This plan would help a homeowner, who is facing foreclosure, a fast track refinance or modification and a greatly increased chance of saving their home.As many as 9 million homeowners will be able to take advantage of this plan. This is due to mortgage lenders and banks receiving cash incentives from the Government for every homeowner they approve for refinancing or modification under the guidelines of this plan. Both the Government and mortgage lenders know that foreclosures really benefit nobody when everything is said and done. Banks and lenders stand to benefit much more by working with the homeowner to get an mortgage payment which is actually affordable. To do this mortgage rates will be lowered to as low as 4% through refinance or modification, to help ensure homeowners can stay in their home, and help the foreclosure rate drop.Homeowners who have already taken advantage of this program from President Obama are reporting savings that average in the hundreds, every single month. Other homeowners who were already in the process of foreclosure were able to actually save their homes. The bottom line is that if you are a homeowner who is in a bad mortgage, having financial problems, or are facing foreclosure, Obamas “Making Home Affordable” plan will likely be able to assist you save your home.
The amount of time you should wait to refinance your home depends on some key factors. Some deal with your type of mortgage and the lender you are currently with. Other factors depend on your financial situation and the market at the time you are considering to refinance your home. The type of mortgage you already have on your home determines refinancing timing more than anything else, so lets start there.Questions to Ask Regarding Your Current Mortgage
Does it have a seasoning period? A seasoning period is the time the mortgage company has written into the mortgage documents before which you cannot refinance your home. Some people buy foreclosure homes planning on refinancing once they get it re-appraised with enough value to eliminated the Private Mortgage Insurance. Many banks have time lines on mortgages that help them determine when they break even and will not allow the mortgage to be refinanced before then. If there is no seasoning period then any time is good.
Does your current mortgage have early payoff fees? Most mortgages now have eliminated these clauses because consumers caught on to them. However, if your home was mortgaged some time ago, it may have an early payoff penalty. This means if you pay off the mortgage early (even with a refinancing loan) you will pay a fee. If there is no payoff fee then you do not have to factor in those costs.
Is your current home loan fixed or variable? A fixed term mortgage gives you indefinite security with the current interest rate you have. You can wait out the market and your own personal financial situation to determine when the best time to mortgage will be. If you have a variable or adjustable rate mortgage (ARM) then when the fixed term portion of the mortgage (5 year ARM is 5 years fixed) is up, you may have a significant percentage increase if you do not refinance. If your ARM is getting ready to become variable it is a good time to refinance.
What is your current loan interest rate? Don’t look at the APR (annual percentage rate) since that counts in to your mortgage one time costs you have already paid and cannot recover (closing costs, points, etc). Look at the loan interest rate (the lower number you were likely quoted). Once you have figured out the above factors, and have the loan interest rate in hand you can move onto the next set of factors.Questions to Ask Regarding Your Financial Situation and the MarketThe mortgage market fluctuates interest rates for home loans daily. When that interacts with your personal financial situation and its fluctuations, a few months’ time can make thousands of dollars of difference. Here are some pieces of information you need to make an informed decision about when to refinance your home.
What is your FICO credit score? Do not pay or the vantage credit score, since it is not as well known and likely is not what banks will look at. Get your FICO credit score with a number. If your FICO score is above 700 then it may be a good time to refinance your home loan. If your FICO score is below 700, then you will likely want to repair your FICO score before refinancing since it could save you thousands of dollars to do so.
How much cash do you have on hand? To refinance a home loan you often need cash to cover closing costs (average cost is around $2500). You need to be sure you can cover the closing costs and still have a 3-6 months emergency fund in hand.
How long will you be in the home? If you plan on staying only a short time then the refinancing loan will have to pay for itself quickly. If you plan on being in the home for the foreseeable future then you can afford to take a few years for the refinance to pay for itself. Divide the total costs of refinancing by the savings per month over your old loan to determine how long it will take to pay or itself.
Is the APR for a new loan less than the loan rate for the current loan? You basically want to be sure that the costs of closing (assessment, points, origination fee and so on) when considered as part of the interest rate of the loan save you money over the loan interest rate you already have. Again, don’t look at the APR of your current home loan, that includes previous closing costs that you can’t change.
The recent announcement of President Obamas “Making Home Affordable” plan will allow millions of current homeowners the chance to refinance or modify their home loans into new 2% fixed rate mortgages. The savings, through interest alone, easily add up to hundreds of dollars per month. Here is how this $75 billion housing bailout plan works:-Homeowners who have seen their home or property values drop by 15% or more as a result of this housing crisis, are in luck. Millions of homeowners who purchased their home in the past few years now are stuck with mortgages that are actually worth more than the home. Now, you will still be approved for a 2% fixed rate finance even if you owe up to 5% more than your home is actually worth.-Homeowners who have been able to make every one of their mortgage payments on time and in full for the past 12 months, or longer, in a row, can now refinance into the Government backed fixed rate 2% home loan. All homeowners will qualify for this refinancing part of the “Making Home Affordable” plan as long as you have not been late or missed any payments.-“Financial Hardships” such job loss, income loss or reduction, hospital bills or tuition payments, high interest debts, or a whole list of other things will help a homeowner qualify and be approved for a home loan modification. This loan modification will allow homeowners who have missed or been late on a few mortgage payments and are struggling financially. Include a handwritten letter stating your “Financial Hardships” and hand sign it. Attach this letter to your loan application for a 2% fixed rate, government backed, home mortgage loan modification.-A homeowner who is lucky enough to have a mortgage financed or backed from Freddie Mac or Fannie Mae will be automatically eligible, regardless of your financial situation, for a 2% home loan refinance or modification. This is possible, again, because of President Obama’s and the Federal Governments “Making Home Affordable” plan.By taking advantage of this great time for refinancing or loan modification, a homeowner can easily save hundreds of dollars every single month, in interest savings alone. This easily adds up, in most cases, to tens of thousands of dollars in savings over the course of the mortgage, which is usually 30 years. Homeowners who are having financial problems, or think there mortgage payments are too high and they could do better, should look into the potential savings refinancing or modification of your home loan are. Odds are, especially using this “Making Home Affordable” plan, you will qualify for a much better home mortgage than you have now.
President Obama is aware of the hard financial times that the average American faces. Home values have dropped, and the rising number of foreclosures just makes things even worse as each foreclosure lowers the surrounding home values even more. In an effort to help homeowners, the Government now offers 2% home mortgage refinance or modification.This plan, enacted just last month, makes millions of homeowners eligible for a 2% refinance or modification. Some things that were typically needed to be eligible to refinance, such as a 20% equity stake in your home, are no longer required as mortgage lenders and banks strive to follow Obamas guidelines and approve as many homeowners as possible. This stimulus refinance package should make the average homeowners average monthly payment much smaller and savings of hundreds every month are typical. This will help a lot of homeowners who are in foreclosure, or will be, by giving them a chance to save their home.This government backed plan will restore consumer confidence in the housing market, prevent millions of foreclosures, and to help struggling homeowners. There is over $75 billion dollars available to mortgage lenders and banks to help them approve homeowners they otherwise would have denied. This means that getting approval for a mortgage refinance or modification is now easier than ever.Homeowners who are seriously looking into a mortgage refinance or modification and use this stimulus plan will be able to obtain a mortgage payment that is no larger than 31% of the homeowners gross monthly income. A lot of homeowners currently pay 50% or more every single month just on their mortgage payment. A reduction of 20% would equal big time savings which would add up quickly.The mortgage lenders and banks who abide by this stimulus bailout plan will need to follow an exacting set of guidelines set by the Government. Homeowners will easily be able to save huge sums of money every single month just by taking advantage and refinancing their home. At least look into the potential savings from modifying a home using this “Making Home Affordable” plan from Obama.
Refinancing is a blessing, where people with bad credit that are literally drowning and thinking there is nothing to be done about their condition, they are actually passing a huge chance of turning their bad credit into a good credit facility.Refinancing your home with bad credit is a topic that is rarely properly understood. How to turn your bad credit is eventually avoided because it is belief that if you have a bad credit, things can be changed for the better. Let us take a look at the basics of acquiring how to refinance your home with bad credit.Often times you may be faced with a natural instinct that makes you feel helpless and this situation can present a possibility of foreclosure to you. There is one thing that folks do not understand when discussing how to refinance your home with bad credit. The fact is your loaner is not happy with the foreclosure, although you might think differently.Any financial institution out there would like to receive constant monthly payments rather than a house title. Looking closely to this issue of pain, you will notice that various banks also have financial assistance programs for individuals that are facing foreclosure and bad credit situations are also covered at the same time.Meeting the loaner, can avoid the greatest mistake folks make when they would like to refinance their home with bad credit. In most cases there are different back up plans that are available when you deal with the possibility of foreclosure. Although this might not be your case and you just want to do regular refinancing of your home while labeled with bad credit in order to take advantage of lower interest rates than in the past, contacting your current loaner is a good idea in a long run. Negotiating your current contract for a fixed fee may be the last option. You can gain different benefits on longer terms as well.A lot of mortgage brokers will offer you special refinancing options if you have bad credit. It is true that the conditions are stricter and that you might end up paying more than you would if you did not have bad credit but it is something you sometimes need to do in order to fix the bad credit program. By gaining refinancing you could gain extra money you could utilize to develop your business in order for it to generate more income. Using your home equity is the best way to do that because as time passes your home will gain from your actions.The best think you can do in order to learn how to properly refinance your home with bad credit is to ask for help. There are many non profit groups and credit counseling agencies that will help you deal with creditors in a professional way without falling as a prey into their hands. In most cases this means that you will be helped by individuals that have the proper knowledge, experience and credibility to help you, even if you are labeled with bad credit.Look for a reputable credit counseling agency over the Internet or in the area where you live with and gain advice on how to refinance your home with bad credit. You will need to have patience because analyzing all the aspects involved is a process that requires time. Professionals will look at every single aspect and every opportunity available before telling you how to refinance your home with bad credit. It is a shame that few people actually use the services of these highly trained individuals and end up losing their homes when there was something that could have been done, a solution that was missed by the individual that is now homeless.
There are many reasons why homeowners are seeking out a home mortgage refinance. These reasons vary from simply wanting to have more money to pay off debt, all the way to lowering your monthly mortgage monthly payments. While there are many different reasons why you may want to refinance your home mortgage, there are several things you must know about this process that could save you time and money. The first of these is to understand all of the benefits of refinancing your home mortgage. Even though you probably have a good understanding of why you want to refinance, if you don’t know all of the benefits you may be missing out on some of them.The first benefit to refinancing your home mortgage is to give you control over how much interest you will actually be paying. If you are like many homeowners, then your mortgage probably has an adjustable rate. While this may have seemed like a great idea at the beginning of the loan, throughout the years you have probably experienced an increase of interest, which can ultimately cost you thousands of dollars.This type of instability causes many people to worry about their next month’s mortgage payment, and whether or not it will stretch their finances too slim. When you have an adjustable rate on your home mortgage, you can refinance your mortgage to a fixed rate, which will allow you to have stability with your monthly payments.Some individuals feel that an adjustable rate mortgage is the way to borrow your home loan, however, if you have experience an interest peak then you quickly understand why this is a hassle you just don’t want to deal with. When you go with a refinanced, fixed rate, mortgage, you may have a slightly higher interest rate, however, you will have confidence in knowing that this rate will never rise.One of the main reasons why you would want to use a home mortgage refinance for this use is if you are planning on living in your current home for quite some time. Otherwise, you may want to consider another benefit of a refinanced mortgage.If you want to refinance your mortgage, but you don’t want to settle with a fixed rate interest plan, than you can choose to have a cap put onto an adjustable rate mortgage. This is perfect if your current adjustable rate loan does not have a cap because it allows you to have semi-control over how high your interest rates will actually go. With a capped adjustable mortgage, you will be able to experience lower interest rates, and the interest will never increase past your pre-determined cap.This type of home mortgage refinance option is perfect for individuals who want more security within this mortgage, but aren’t planning on living in their current household for many years. When you refinance your home mortgage, you are able to help streamline your finances and are given an opportunity to grasp onto financial freedom. Whether you want to consolidate your various debts, or if you simply want more security, a home mortgage refinance is definitely a great way to do so.
Especially these days, many homeowners are looking into a mortgage refinance to help their financial problems. This bad housing market and economy has caused a lot of problems for homeowners. This however should not stop anyone from getting approved for a home loan refinancing or fixing their finances.While a mortgage refinance has the potential to help many people with their debts and finances, you must get approved for it first. You will need to have a great or good credit rating, and good mortgage payment history, to get the absolute lowest interest rates when refinancing. The interest rates can change according to the homeowners credit history, and score. If at all possible fix little problems with your credit prior to applying for a mortgage refinance. Even little improvements can effect the interest rate you qualify for. Also, obviously avoid getting into additional debt before applying for a mortgage refinancing.Having equity in your home also helps act as security when applying for a home loan refinancing and may be necessary for some people. To get approved for most traditional refinance programs, a home must have a certain level of equity built up. This new mortgage will benefit you with lower interest rates, or a change in length of repayment. Mortgage payments can be lowered due to a better interest rate, and more payments, or both.Many homeowners can really benefit from a mortgage refinance when they are in a financial problem. The money saved or gotten from a refinance can be used to pay off other debts, bills, or anything a homeowner wishes. It is easy and convenient for a homeowners to do as long as they are qualified to get approved for a mortgage refinancing.When refinancing, there are two different types of interest rates that are typically available. One of them is a fixed rate mortgage. This is when the interest rate never changes, and the monthly payments remain the same throughout the duration of the home loan. A fixed rate mortgage is generally better in the long run than other options, and is desired by many homeowners for the stability it offers. Adjusted rate mortgages (ARM) have an interest rate which can change, and effect the amount you owe for your mortgage payment. These loans are easier to get into and a little cheaper initially. With an ARM loan the interest rates will change as the market conditions change. This means that at anytime an adjusted rate mortgage can dramatically increase in payment amount. This can lead to problems down the road if the payments become so high they are not affordable.Always remember though that there are closing costs and fees which are associated with a mortgage refinance. Always be fully aware of what these costs are, how they effect your finances, and how they effect the long term results of a mortgage refinancing. If you are not aware, you may be surprised and end up paying much more than you thought.
Bank of America has new mortgage refinancing options available thanks to President Obama’s stimulus plan. This plan is designed to help struggling homeowners get a better mortgage, save money, save their home from being lost, or all of the above. Bank of America is one of the only mortgage lenders or banks who can offer this plan to homeowners. Here are some things you should know.Bank of America has a proven track record and is one of the largest, most well known, and used, banks in the mortgage industry. They are one of only a select few who can offer the stimulus plan options to homeowners. With this stimulus plan, homeowners in all types of bad financial or mortgage situations can get help. Over $75 billion is being given to mortgage lenders and banks as cash incentives to help homeowners. Every time an approved bank or lender, like Bank of America, helps a homeowner get a better, more affordable, mortgage, they receive cash. This money will promote this program, and lessen the financial risk assumed by helping a struggling homeowner.According to the guidelines of the stimulus plan, a homeowner who gets help from it will not pay more than 31% of their gross monthly income for their home loan every month. This will be a huge reduction for many homeowners. To get a payment that is this low, mortgage lenders or banks can reduce interest rates, change the length of a home loan, or both. Many homeowners will be able to save their home through this by using it to get an affordable monthly home loan payment.Bank of America and the stimulus plan also make refinancing easier for homeowners who:- Have bad credit or are facing financial problems.- Have a home that is or has dropped in value.- Owe up to 25% more than the homes actual market value.- Want to get out of an ARM (Adjusted rate mortgage) loan and into a stable fixed rate mortgage.Millions of homeowners can use this plan, and Bank of America, to save their home, a lot of money, or both. Help is out there for all types of homeowners, regardless of their situation. Finding it thou is now much easier. Contact Bank of America today and see what the potential benefits of this program are for you.
When interest rates were two points below your current mortgage rate, it was considered a good rule of thumb to refinance. But with today’s low closing costs, a difference of one percent can save you money on your interest costs. Even with low fees, it only worth it to refinance when you can be sure you can recoup the mortgage costs.Figuring Up CostsRefinancing is simply paying off one loan and taking a new one. The same fees that you paid with the first mortgage, you will probably have to pay for the second mortgage. Usually, loan cost range between $2000 to $6000 for a $200,000 loan. You will also have to add in points for lower interest rates, adding additional thousands. The only way to recoup these costs is to keep your mortgage for several years.Interest RatesTo make refinancing worth it financially, you need to be sure that interest rates are low enough to pay for the cost of refinancing. One simple way to figure this out is to use a mortgage interest calculator from one of the lending sites. These calculators will give you an estimated monthly payment and the total cost of the interest. By punching in different interest rates, you can see your potential savings.Short TermBesides interest rates, you also need to compare terms. The shorter the loan the less you will pay in interest. Ideally when you refinance, you should choose a loan with a shorter term. You can also choose a biweekly mortgage, where you pay half a mortgage payment every other week, which can reduce your loan by years.Finding Low Cost LendersNot all lenders charge the same fees or interest rates, so you can save thousands by searching for lenders. You can easily go to the big name mortgage lenders and request quotes, but some smaller financing companies offer better deals. The easiest way to find them is through an online mortgage broker site. Basically, you enter some basic information about yourself and income, and then you receive several different quotes. From this list of offers, you can decide who is offering the best refi package.To view our list of recommended mortgage refinance lenders online, visit this
page: Recommended Mortgage
Refinance Lenders Online.
Refinancing your home makes sense when you determine how much you want to save before starting the process. Do you want to save $50, $100, $200, or more a month?Let’s say you want to save at least $100 a month before starting with the process. It is not really that much of a hassle, we refinanced in February 2010 and saved $140 a month…no closing costs…no appraisal…a three-week process…we chose the right lender.Here is what you have to send the lender:1) Last two years income tax returns2) Copies of your latest brokerage statements3) Social Security verification4) Copies of your driver’s license…best to send as a pdf file…faxing is usually not acceptableThat is about it, you can do all this with a fax machine in less than an hour.We saved the $140 a month on a 30-year mortgage of $210,000. If you ask for a no closing cost refinance proposal it makes it easier to determine what is the best deal. We could have gotten a 4.875% loan…but it would have cost $5,000 at closing…not a good investment.We saved by dropping our mortgage rate only a quarter point…the existing mortgage was a 5.675% loan…we now have a 5.375% rate.So figure if you can get your rate reduced by a quarter point with no closing costs you can save $65 to $70 a month for every hundred thousand dollars you owe.Do not think mortgage lenders look at your age as a problem. I am 64… my new 30 year mortgage will not be paid off until I am 94.The best home refinance tip I can give you is to use the right lender…in our recent experience we ran into some unethical lenders…benefit from our journey… go to the best lender first… Interested in who they are?