Mortgage rates are one of the most important factors when considering how much different mortgage options will cost. In most situations, the lower the APR on a mortgage, the less it will cost. This means that consumers should strive to get the lowest possible mortgage rates when applying for home loans. Here are some steps you can take to qualify for low mortgage rates.First, make sure your credit score is high. Get a copy of your credit score and report before applying for your loan, and make sure that the information it contains is accurate. Fix any errors that you find. If you find that your credit score is below 650, take the time to improve it. You can do this by lowering any credit card balances that are over 35% of the credit limit, making payments on time for a few months, and avoiding any situations where you would be applying for new credit.Besides your credit rating, mortgage lenders will also consider your debt-to-income ratio when determining your mortgage rates. If you can, take the time to lower your total debt before applying. This will help you qualify for lower interest rates on your mortgage. Also, if you can co-sign with someone who has a job, this can effectively lower your debt-to-income ratio by increasing your total income.Another way you can lower the mortgage rates on your loan is to put a large down payment on the property. You need at least 20% to avoid a fee known as private mortgage insurance. This additional fee will increase the APR on your loan.Remember, every percentage point that you add or subtract from your mortgage rate represents thousands of dollars over the life of your mortgage. There are things you can do right now to lower your mortgage rates. Take the time to do your homework, and soon you will be able to find an affordable loan option for your needs.
With the availability of mortgages and home loans, buying your real estate residential property is not very difficult. The Internet has made the procedure even more stress free and uncomplicated. You can search for the right and most prospective lender, and fill up an online application form. Economy in one place is never stable. The market keeps on changing its trends and strategies and accordingly the rates of interest keeps going up and down. It is difficult for a layman to understand the market fluctuations. This is the reason why sometimes the existing mortgage becomes expensive and you have to pay more unnecessarily than actually required. Only financial experts can analyze the situations well and predict things to a certain extent. It would then be a good advice to apply for revised mortgage refinance rates after having an open discussion with your financial counselor.Mortgage refinance rates definitely have to be lower than the existing mortgage deal so that you enhance your savings. This savings can be used not only to clear your existing debts, credit card dues and other such expenses. You can also use it for your personal requirements like wedding, medical requirement, home improvement or renovation or others.Mortgage refinance rates lower than the existing one brings not only the benefit of greater savings, but also reduces the risks from a variable interest rate to a fixed one, extend the loan term and lower the monthly repayments to make it easy on your pockets. Moreover it helps to raise equity on your property and convert it to cash which can help you serve various personal and professional needs. In short, mortgage refinance is a wise and inexpensive act to consolidate your multiple debts into a single loan. Timely repayments put you in the good books of your lenders and thus you perk up your credit score.Basically when you look forward for best mortgage refinance rates, you have to understand every aspect very vividly. You can take advice from your financial advisor about Mortgage Refinance Rates. Firstly you can negotiate with your existing lender or creditor and get a revised remortgage rate and terms and conditions that will bring you greater benefits and help you improve your credibility and financial stability. You may even negotiate with other lender. Just as for the mortgage deal you take quotes from multiple lenders and use the online calculators to evaluate your rate of interest and monthly repayments, so you can do for refinancing. You can wisely use the online calculators to evaluate the mortgage refinance rates that would suit you well. Compare the terms and conditions offered by multiple lenders and then decide upon the best. The Internet ahs made everything so very simple and easy for you. To make the most out of your investment, it is mandatory to shop around well and get the best possible deals. Competition amongst the lenders tend to be beneficial to you and fetch you favorable mortgage refinance rates and stipulations and requisites
Refinance Mortgage RatesRefinance mortgage business is in full swing, due to the current recession. Those who have excellent credit should be taking every effort possible to get in on the savings that is now available. Mortgage rates are extremely low and you can save literally thousands of dollars right now.Mortgage rates are low due to the value of the U.S. dollar and the current mortgage foreclosure rate. Currently the mortgage foreclosure rate is at an all time high. So many folks were led to sign up for sub-prime mortgage loans a few years back and this has driven the foreclosure rate out of site.Sub-prime mortgages are designed for short term lending and you hopefully can afford a much larger home for the initial purchase and then later, hopefully, you have either decided to move or refinance to a fixed rate mortgage once your property has appreciated in value, allowing you to refinance using the market value of your home to offset refinancing costs. Unfortunately, the real estate forecast was not expecting our economy to take such a sour turn. This has caused otherwise good credit worthy homeowners to be upside down in their home’s equity.Mortgage refinance is as common as any daily business transactions and usually is a smart way to manage your long term financing. Allowing your money and your investments to work for you is really a smart strategy, but unfortunately, predicting how the economy is going to progress and react to certain market conditions is a gamble.For those who are upside down with their home market values, this is a bad time for sure. Finding quick solutions is difficult and so many homeowners are running out of alternatives to finding a way to recover from the current market status.One way to hedge your mortgage situation is to offer incentives for a buyer to purchase your home to avoid foreclosure and ruining your credit. If you throw in a car, a boat, or maybe an RV, then a potential buyer will choose your property to buy over other homes in the same area or price range. Folks these are tough times and being smarter than sentimental is the right choices to begin making.Refinance mortgage rates are attractive and if there is any good news to be found here, then if you can refinance now, if it has become too late for your financial gains, then be creative and get out before succumbing to a longer period of financial downturn. This is not our first downturn in our mortgage history and we will rebound for sure, how long and where you come out requires doing some unpleasant decision making right now.
Especially lately, information about mortgage refinancing is heard everywhere. Mortgage rates are at a near all time low across the country and look to stay pretty much the same throughout 2009. A lot of homeowners stand to save hundreds per month, or thousands over the course of the mortgage, by taking advantage of these record low rates. As long as you make smart financial decisions and do not get too risky, there is never a bad reason to refinance a home mortgage loan.Generally, the most popular reason to refinance is to change your existing rate into a new rate which is lower. Even refinancing into a loan that is just 1% (Ideally more) lower can save you a lot of money. Another popular reason is to get out of an ARM loan (adjustable rate mortgage) and into a more stable fixed rate mortgage. As I said with mortgage rates at near or all time lows all over the country, it is very probable that you will save a sizable amount of money you saved from not paying unnecessary interest rates.A home loan refinance is also done to free up extra cash from the equity in your home to make a sizable purchase or expense. A home equity loan however is typically an adjustable type of loan, which many people should be wary of. However, it is possible to refinance into say a longer term mortgage, and walk out of the refinance with the difference in cash, in your pocket. You should use any money gotten from a refinance to pay off other debts or things with interest payments. This will save you additional money every month while rebuilding your credit. You can use the money for whatever you wish, it is just recommended to use the money in a financially wise way.There are some homeowners seeking a refinance in order to remove a name from the mortgage. In divorce for example, if one of the parties gets the house, they may want to refinance in order to remove their ex does not have any kind of ownership of the home. Or, if the home remains in both peoples name, but only one person lives there and cant pay, both people will pay the price in the longer run. It is usually a safe, wise decision to refinance in this case as to not be liable for your former spouses expenses or debts.Refinancing the correct way can really save you a lot of money. This is extra money that you would have been otherwise spending every month on interest. Start your search for a quote with your current lender, get a written quote and shop that quote around to potential mortgage lenders. Often, they will match or beat the offer in some way to gain your business.-M Petrone
With refinance home mortgage rates super low right now, you are probably thinking you should take advantage of it. You already researched everything you could research on your own. So you know that your home’s value is enough to cover the whole loan in a refinancing transaction. Your credit score is over 700, which is excellent. And your income to debt ratio is very good. You make more than enough for even several house payments. Ok, so maybe that’s not the case, but that does not mean you will not quality. Working with a good loan officer, you will be able to find a solution that will let you lock in an excellent interest rate. So, as you are going through the paperwork, the topic of discount points comes up. Should you take the discount point?The answer all depends on what you are planning on doing in the future. Are you planning on selling within 5 years? Or are you planning to stay for the long term?If you are going to sell, you have to consider the real estate market. Will you be able to realistically sell and make enough money to have made it worthwhile? Right now, it is unlikely that a house will appreciate enough to make it worthwhile. You have to consider that you will be paying the realtors’ commissions which will amount to 6%. Then you may have to pay taxes and insurance so that you will have a buyer. This all adds up and if your house has not appreciated by at least 10%, then you would be losing money and thousands at that. But if you are confident that you will be able to sell, then it would be wiser to not take a discount point as it will only add to your cost. If anything, you might want to take a slightly higher rate just so you get the rebate upfront. If do some calculations, you can figure if the upfront savings will be more than what you would pay on the interest and when the break-even point is. This will let you know the deadline by which you would need to sell before you starting losing money.If you are not going to sell your property, then of course, taking the discount point is the wisest course. You will be locking in at one of the terrific refinance home mortgage rates available right now. In the long term, you will end up saving a lot in interest payments. It really is amazing how much you really do end up paying.
There are many benefits that a mortgage refinance can have for a homeowner. However, if just one thing is wrong, or one mistake is made, it can cost you a lot of money, and put your home at risk. Here are 4 of the most expensive mistakes a homeowner makes when mortgage refinancing.1) Not Getting Mortgage Interest Rates Locked InMortgage rates change frequently. In the time it takes to process and approve your refinance application, interest rates probably have changed a few times. Once you find a mortgage rate and lender you like, ask them to lock it in. If this is not done, you may find that when it comes to signing day, the interest rates on your home loan refinance have changed. Ask your mortgage lender to put it down in writing and sign it. They will usually only do this if asked to, and they will set a limit of no more than 4 business days on the interest rate.2) Not Comparison ShoppingIf you were not aware, there are literally hundreds of mortgage lenders. If you were Each lender is different, and while the services are typically the same, the fees, rates, and qualifications for each one may differ greatly. It is always recommended that a homeowner looks at a variety of different mortgage lender and banks to get the best deal possible.3) Refinancing a Mortgage Too OftenRefinancing a mortgage to get better interest rates and save some money is a great decision. However, some homeowners take it overboard and refinance every time interest rates drop. However, while this may seem like a good idea, it is not. Refinancing a mortgage too often will result in massive fees, closing costs, and extended mortgage terms. Getting a mortgage refinance too frequently is often a bad idea for the long run.4) Unknown Break In Length.Many homeowners do not realize that there are fees and costs associated with getting a mortgage refinance. Calculating the time it will take to recoup the costs, and start seeing savings, needs to be known and anticipated.Here is a quick example of how to. Say you are going to save around $300 per month on your mortgage refinance. However your closing costs are $3000. That means it will take 10 months until your break in period.These tips should help homeowners avoid some of the common costly mistakes that are made.
Word just in from one of our friends – a local Realtor in Fort Lauderdale, FL that could affect many of our friends and family. It seems not only are the banks and mortgage companies making it harder to get new loans, but they have started taking back access to equity lines they have already granted in light of declining property values.We have stated in previous articles and blog posts that lenders reserve the right to freeze a line of credit on property that has been damaged in the aftermath of a hurricane. If the lender’s collateral is no longer there or is damaged, then they may not allow homeowners to access the available credit when a homeowner may need it most. According to our friend, though, his line of credit was frozen due to a drop in property value – even though there is nothing wrong with the home.We have said it countless times before – money in property is not the same thing as money in the bank. It may not be there to “withdraw” via a loan or line of credit when you need it most. Thankfully, our friend wasn’t put in jeopardy by this situation, but there may be people who are using their line of credit as a savings “account” and have their money in the line of credit instead of the bank. If the bulk of someone’s savings is suddenly trapped in their home, it could be devastating for them.Right now, with the market in flux, the safest place to have your money is where you can get it easily – in the bank or some other account instead of your house. If you were planning on using money from an equity line of credit some time this year or next, you should really look at the option of taking it out of the property now. Perhaps using a larger first mortgage product – rates are very low right now on fixed rate loans. Just don’t leave yourself at the mercy of bank policies that will be aimed at protecting their interest instead of yours.
The Obama Refinance Plan was established back in March of 2009 and has done a lot to allow home owners to refinance. Prior to the plan, it was very difficult to go through the refinance process with a loan-to-value of anything above 95%. That has all changed as the new plan allows you to go through the mortgage application process with a loan-to-value of over 100%. With the great fall of the housing market, many homes are under water, meaning that the owner owes more than the house is worth.Much of this is not the fault of the home owner as there may have been a foreclosure or short sale in the same neighborhood. If this is the case, the value of a home can drop as much as 20% in a few short months. This seems to be happening all over the United States and President Obama wants to do everything in his power to not let this harm the housing market even more than it has.Current mortgage rates are near historic lows which will give new home buyers and home owners a chance to save a lot of money if they can access the rates. Prior to March of 2009, it was very hard to access these rates as lenders were being very stingy. The recent memory of the subprime mortgage crisis has been etched in the brains of many of these lenders and they are not willing to go through the mortgage application process with anyone that many be any risk of defaulting; now that has all changed with the Obama refinance plan.
Home loan refinance simply involves taking out a new mortgage loan while paying down the existing loan. The refinanced mortgage should always be structured in such a way that the terms of the loan are advantageous relative to the terms of the existing mortgage.In the case of many homeowners today, there are a whole lot of good reasons to refinance a mortgage. If done correctly and under the right conditions, refinancing offers a host of potential benefits, including:* lowing your monthly mortgage payments* saving you money on the total cost of your loan* allowing you to out on some of your home equity for use in paying down other debt – or for paying billsIt is not always a good time to refinance your home loan, however. In most cases, you will want to be able to qualify for a better interest rate than you have on your current mortgage in order consider a refinance. In fact, your ability to get a more favorable mortgage rate should be the central factor in your decision to move forward with refinancing your home loan.Here are 3 steps to the best home refinance; a mortgage rate shopping guide:1. Understand where today’s mortgage rates are in their historical context:The rate for which you qualify today will depend upon two main factors: a. where average rates are today (relative to average rates of the recent past) for the type of loan you want, and, b. your current credit score.Start by having a look online at today’s rates. Get an understanding of where rates are relative to the rates of, say, 3-12 months ago. Also, have a look at where rates they are today relative to that of your existing mortgage loan.2. Do whatever you can to improve your credit score:Unless your FICO score is already at 760 or above (which is considered a premium credit score), you will likely benefit from working to improve your score. Start by running your credit report. Find out if there are any errors on your report. If you find any, get them corrected immediately.3. Submit refinance applications to your current lender and to 3 others:Finally, when you are ready to apply for a mortgage refinance loan, be sure to get a quote from your current mortgage lender. But, do not stop there: apply to at least 3 other lenders, as well. Only by applying to multiple lenders can you hope to find the one that will offer you the lowest rate.Consider these 3 tips as you find for yourself the best home refinance mortgage rates.
Home mortgage rates are still at record lows this year, according to Freddie Mac or the Federal Home Loan Mortgage Corporation. For a 30-year mortgage this year, the rate is 4.5% which is down from last year’s 5.2%. This year’s rate is even lower from that of two years ago, which was at 6.5%. What these all mean is that home refinance rates are at an all time low too, this year. If you’re thinking of refinancing your home mortgage, there’s no better time than now and take advantage of this year’s rates, but only if you have the right reason why you want to refinance your mortgage.One of the reasons, and the usual reason, why homeowners refinance their home mortgage is to take advantage of the low rates. You can lower your monthly amortization with a lower interest rate, of course. You can save up to $7,560 over ten years if you reduce your interest rate from 6% to 5.5% of a $200,000 30-year fixed rate loan. You can also change from an adjustable-rate mortgage to a fixed rate if you think the home refinance rates will rise in the future. Conversely, you can change from a fixed rate to an adjustable-mortgage rate if you think the rates will continue to decrease.The other reasons why some homeowner resort to home refinancing, aside from the low home refinance rates, was to adjust the length of the mortgage. You can either shorten or lengthen the term of your mortgage. If you want to finish paying your mortgage faster, or to build your home equity faster, you may want to shorten the length of your mortgage. Shorter term refinancing usually have lower rates also, so although you will have a higher monthly payment because of the shorter term, in the long run, you will save money because you’re paying less rate.If you have been paying your home mortgage for a long time now, it may not be a good idea to refinance your mortgage even though there is a much lower home refinance rates. This is because the longer you’re paying your mortgage, your payments are going towards paying the principal loan. If you resort to refinancing, you will restart the process again and you’ll be again paying for the interests. There are some mortgage loans that will charge you a large fee if you pay your loan early, known as pre-payment penalty. It may also cover refinancing, so it is best to ask your lender first.Aside from the pre-payment penalty, you should also remember the whenever you refinance, you will be paying fees that can add up to thousands of dollars. You may have to pay refinancing fees that totals up to 3% to 6% of your outstanding principal. Refinancing fees differ from States to States and lenders also have their own fees that differ from that of other lenders. Even if the home refinance rates are low and you’re tempted to refinance your home mortgage, it is best to consider these costs and compare it with the amount of money you will be able to save.