Best Mortgage Rates Today to Refinance My Home Loan - 5 Tips
Your home is probably your most valued possession. In fact, for most homeowners, it is the most expensive thing they have ever purchased in their lives.Somehow, after signing that first - and also possibly second - mortgage contract, most of us settle into the monthly habit of writing that mortgage check or making that online mortgage payment: same payment, month in and month out. Given that so many of our other monthly expenses, such as utilities, gas for our car, and food change a bit from month to month, when it comes to finding ways to cut back our expenses we tend to focus on those rather than fixed expenses like our mortgage payments.That is why every few years, it is a good idea to revisit the idea of refinancing your home loan. A refinance simply means taking out a new loan while paying off the existing loan - and sometimes receiving some cash (converted home equity) in the process.Potential benefits to mortgage refinance depend upon a number of factors and vary on a case-by-case basis. Depending upon how you structure your refinance, benefits can include:a. the ability to cash out equity in your homeb. making lower future monthly paymentsc. realizing savings on the total cost of your loanOf course, one of the most important considerations when deciding about whether to refinance has to do with whether you can qualify for a low refinance rate. If you are wondering, "How do I find the best mortgage rates today to refinance my home loan?", here are 5 tips to getting yourself the best rates:1. Get a feel for recent mortgage rate trends:Look online for charts showing the "historical national average fixed mortgage" rates on 30-year fixed loans. It is helpful to look at three month, one year, and long-term rate trends. This will give you a good feel for where rates are now and where they have been recently.2. Your new mortgage rate will depend on both historical trends AND your credit score:But not only does the current average interest rate play in role in your refinance rate: also taken into account by your refinance lender is your credit score.3. Compare your current credit scores from all three reporting agencies to what it was when you qualified for your current mortgage loan:Request from TransUnion, Equifax and Experian (the big three monitoring and reporting agencies) your most recent credit report. Compare your current average credit score (across all three) to what it was when you signed your current mortgage.4. If rates are down or your credit score is up - consider a refinance right away:Now, looking at the research you have done so far: if average rates are down and your credit score is up, it is basically a no-brainer that you should apply for refinancing. Even if only one of these is the case, though, it is worth applying for a mortgage refinance loan to find out how you qualify.5. If rates are the same or up - or if your credit score has not changed, consider your refinance options:On the other hand, if rates are about the same and if you have the same or a worse credit score, you will likely not be able to qualify for a better interest rate than you have now. However, you still may want to refinance if you want to spread your loan out over more time in order to reduce your monthly payments. And, refinancing could still be an option if you want to take on a bigger loan in exchange for cashing out some of your equity in order to pay down higher-interest debt.Consider these 5 tips for finding the best mortgage rates today to refinance your home loan.
Bad Credit With Poor Credit You Can Still Refinance or Get a Home Equity Line of Credit
Refinancing your home loan can allow you to make improvements to your home or consolidate debts. Some lenders offer loans up to 125% of your home's value even if you have less than perfect credit. Your current mortgage terms and interest rate, the length of time you intend to stay in your home, and the level of debt your currently have are all factors to be considered in making the decision to refinance your mortgage. If you have equity in your home, you will often receive a lower interest rate than those with little or no equity.
Home equity lines of credit are revolving accounts with your home serving as security for the loan. When you get a home equity line of credit you are approved for a certain amount of credit. The maximum amount you can borrow at a given time will depend on your credit limit. Typically, a home equity line of credit will have a variable rate of interest although some lenders may offer a fixed rate as well. You will have an amount you can borrow at any given time and you may not borrow more until a certain amount is repaid. Often you will have specific times as to when you may borrow money from your available credit limit.
Obtaining a home equity line of credit is can be the perfect solution for people with remodeling goals, children to put through college, or the need for access to extra cash in the event of an emergency or unexpected financial situation. You can use the money for any purpose and gain peace of mind in knowing you are prepared for whatever life brings you.
Refinancing your mortgage or getting a home equity line of credit has been the answer for millions of people looking to realize their financial goals. Even if your have bad credit there are loans and lenders who specialize in helping finance people with poor credit. They can help you reach your individual objectives.
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Ask the Expert When Do I Refinance My Home
Home refinancing is a wonderful financial tool for homeowners to use for debt management to investments. If the home refinance is used correctly, wisely, and at the right time, the benefits from the refinancecan improve the financial picture of the homeowner. There is no cookiecutter approach to refinancing. Each individual or family has their own unique set of circumstances.
Here are some common questions home owners often ask when they are considering refinancing.What is the most critical question to ask myself when refinancing a home?Is refinancing going to put you in a better position financially? Will refinancing reduce your monthly expenses, meet a critical family
requirement, or improve your investment portfolio? If the answer is yes, it is probably a good time to refinance.
What is a cost benefit analysis?This is a detailed account of the actual cost of refinancing and helps
provide the best financial decision. Cost-benefit analysis analyzes the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs When you look at the actual costs of refinancing, determine how long it will take to recoup costs. Is it worth it?
A qualified mortgage professional should review your alternatives and help you determine if the benefits outweigh the near and long term costs. The rule of thumb regarding the cost vs. benefit of refinancing is that you need a 1- 2% "spread" between your existing interest rate and today's current rates.
Refinancing, No Cash-Out option can reduce your monthly mortgage payment or reduce the remaining term of your loan and thus probably save tens of thousands of dollars in interest over the
long-run. Cash-Out withdraws cash (reduces equity) for home improvement, educational tuition, debt consolidation or for such purchases as a investment property or second home, auto, or other
major purchase.
How often should I refinance?Some people refinance frequently but a rule of thumb should be that you have held the property for one year. Refinancing allows the homeowner to use the home to conduct transactions that allow opportunities and possibly enhance the homeowner's asset pool or reduce the financial short-term burden of the homeowner.
How the homeowner approachesthe refinance is critical to long-term financial net worth. If the homeowner is utilizing the home as a second checking account to payoff consumer debt, financial stability for future years is reduced through ineffective money management by reducing the homeowner's equity.
The ability for the consumer to build equity is in essence a long term subtle retirement plan for the homeowner.What are some questions I can ask the mortgage company or the bank handling my refinancing?The scope of financial knowledge a mortgage consultant or loan officer possesses matters in this transaction. This person should have a thorough knowledge of money and how it works.
Begin by asking about their professional credentials. The best mortgage professionals will
have formal business education, professional experience in the financial industry, and the institutional knowledge to place you in the right product. At Breakwater Mortgage in Virginia Beach, we select our
mortgage consultants, loan officers, and loan originators based on strengths in these areas.
Often lenders, banks, and other mortgage companies do not conduct a detailed review of potential employees that will handle your most important asset. Ask your mortgage professional
why they are recommending a certain loan product to you. You should also feel free to ask personal questions such as:
Do you own a home? What type of mortgage do you have? What is your credit score? The answers will reveal information about their money management. If you do not feel comfortable with your mortgage professional, research a qualified individual who will help you based on your needs. It's worth it to take the time to find the right mortgage professional.Does location of the home matter when considering refinancing?Yes, it matters a great deal.
Some real estate markets have reached their peak. Do not refinance at the top of the market. Research and see how quickly homes are selling in your area. Contact your local professionals regarding home values in your market. They will be able to give you their opinion, home comps, assessments of home value trends in your area.
I recommend you leave 10-15% equity in your home when you refinance. A reputable mortgage broker or lender will recommend that you keep some equity in your home so you can sell your property if situations dictate.Does the type of mortgage I have affect my refinancing decision?Absolutely. Talk to a qualified mortgage professional first, before you make your decision.
That person will help you compare your current mortgage rate/product to current market rates, available mortgage terms, and types of mortgages available based on your discussions. I look at mortgage products based on an indebt analysis of the clients needs. With that in mind, some general rules apply. If rates are falling, I would advise a homeowner to stay in their current loan until a 2% spread between their current loan and future refinance loan.
If a client has a loan product that adjusts downward during a period of decreasing rates, I recommend they stay with that product until a projected rate increase period that will increase over a protracted period. When rates start to increase, and are projected to continue to increase, I would advise a homeowner with a loan product that adjusts, when rates adjust, to move towards a fixed mortgage product (7, 10, 15 or 20 year mortgage depending upon an individual's situation).
If the homeowner is geographically displaced due to employment, say five years or less, a long-term fixed mortgage is not the optimal product. If the homeowner plans to stay in a specific geographical area and in that same home for a long period of time, I'd recommend a long-term fixed rate product and possibly a home owner's line of credit (HELOC) to supplement the homeowner's financial decisions.
With long-term mortgages a homeowner can still opt to pay more on the principal, reducing the term
of the loan and interest costs.What are economic indicators that bode well for refinancing? A knowledgeable mortgage professional should understand economic indicators, and will be able to give you an accurate assessment on whether to refinance or not. Are interest rates rising or falling? With
refinancing, timing is everything.
If rates are falling and they are lower than your mortgage rate (a general rule is 1 - 2 % lower then your current fixed rate), it could be a good time to refinance. If not, it might be a better idea to sit tight and forgo refinancing for now.
Applying Obama's Loan Refinance Or Modification Stimulus Method
Lucky for you that you have stumbled upon all of the data you could probably have to have about terminology utilized for securing a home loan in Pennsylvania:Amortization Routine- For nevertheless a lot of many years you are repaying your loan (let's say 30), you will get a routine of your month-to-month payment for each and every 12 months of the be aware, displaying exactly how a great deal funds goes on the loan's principal and how substantially to the interest.
ARM- Adjustable Charge House loan- You will hear this as "arm", not the letters spelled out. This simply means that your mortgage loan interest charge will be the exact same for a pre-designated timeframe ahead of "adjusting". A "1 12 months ARM" would suggest that your house loan curiosity pace is the same for one yr, then it will "adjust" or rise (as laymen refer to it). A two 12 months ARM would fall into the exact same category, adjusting immediately after two years. And so on. Home loan pros also like to say things like "A 2-28 ARM". When you include 2 + 28, you get thirty. thirty is the range of ages of your home loan: two many years are a fixed charge, and the remaining 28 are not.Escrow Account- You may perhaps elect this convenience for cash compensated each and every month, in addition to your principal and curiosity payment, to cover your house taxes and hazard insurance policies. (It's much much easier to place $250 apart just about every month than come up with $three,000 arrive tax time.)Fixed Rate- The interest price is the very same for the entire mortgage.The web site answers the question whether or not VA loans be modified below HAMP and, in general, if all loans eligible. Most standard loans such as prime, subprime and adjustable loans, loans owned by Fannie Mae, Freddie Mac and private investors, and most loans in mortgage loan backed securities are eligible for a modification below HAMP. On the other hand, the site continues that "the Administration is working with FHA and VA on a system that would supply for modifications consistent with the Creating Property Inexpensive Plan. Currently, loans insured or guaranteed by these companies are staying modified underneath other packages." Resource: makinghomeaffordable.gov/borrower-faqs.htmlThese concerns do not even take into consideration the subsequent and collateral influence of foreclosure, transfers by deed in lieu of foreclosure or quick sale transactions on a veteran's house, which most most likely would include the veteran in no way getting capable to receive a VA household mortgage all over again. Our government's website explains what happens in these instance.The query posed inquires as to what is the influence if a veteran's prior mortgage was foreclosed on, or the veteran gave a deed in lieu of foreclosure, or the VA compensated a compromise or partial claim. Despite the fact that this borrower may perhaps have been launched from liability on the mortgage and/or the debt was waived, the veteran will be advised that he or she cannot have his or her utilised eligibility restored. Why? In both scenario, despite the fact that the veteran's financial debt was waived by the VA, the government still suffered a reduction on the loan. The Author is absolutly committed to helping people conserve their properties. You can verify out additional at www.acilegalshield.com.loan modifications PA, Loan mods, loan modifications PA
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Answers to Your Top Refinance Questions
There's been a lot of talk about refinancing your home mortgage in the news lately. Part of its popularity is due to the fact that many home buyers are rushing to take advantage of record low loan rates. However, many homeowners are faced with a lot of information at once, which raises more questions rather than answering them. To help homeowners make the right refinancing decisions, we've answered a few of the top questions about the mortgage refinance process.
Q. Is it a good idea to refinance my home?
Sometimes, it makes sense to refinance but it depends on your individual situation and what your long-term financial goals are. You may be tired of paying more than one mortgage on the same home. You may adjust your fixed rate mortgage to an adjustable rate or vice versa, or you may want to lower your interest rate and/or monthly payment. To determine if taking the step of refinancing your home is right for you, it's important to consider the following:
· How long do you expect to be in your home?
· How much equity do you have in your home?
· Are you willing to pay points to get a lower rate?
· Can you benefit from a lower mortgage payment and extremely easy refinancing with an FHA loan? Find out if you qualify for an FHA Streamline refinance by answering a few simple questions.
· Will having lower payments more than make up for the closing costs, fees and points if any?
Q. Is it costly to refinance?
Absolutely not. With the wide variety of loan programs available at Quicken Loans, you may be able to refinance your existing home loan at low to no cost to you. Be advised however, that there are few loans that truly have no closing costs. Sometimes lenders may not charge application fees and agree to pay the appraisal and title fees, but they may increase the interest rate in return. Lenders can also roll the costs into the amount of your loan. So, because you're not paying costs up front, it's called a "no closing cost" loan. While slightly increasing your mortgage might be acceptable to you, keep in mind that it's not really a cost-free loan.
Usually, getting the home appraisal is what slows the process down the most. During refinancing booms, appraisers can be difficult to schedule. Also, having your paperwork ready helps to speed the process along much faster
Q. What is the difference between the rate and the APR?
The annual percentage rate adjusts the mortgage interest rate to reflect estimated closing costs including points paid at closing and mortgage insurance.
Our Home Loan Experts adhere to the guidelines set by the Truth in Lending Act which requires us to provide the APR when advertising a mortgage loan and will always provide the loan's APR upon request.
Q. Will refinancing remove my PMI?
You may be able to remove mortgage insurance by refinancing your home loan. In order to qualify you must have made your mortgage payments on time every month for a year and you have at least 20% equity in your home either through appreciation or paying down your mortgage. Our Home Equity Calculator can help determine the available equity in your home.
Q. Does my new rate have to be at least 2 points lower?
It's a common misconception that you have to wait to refinance until mortgage rates drop by 2%. The decision to refinance is determined by how long you plan to live in your home, how much lower the interest rate will be on the new loan, the closing costs, and so on. Typically, when home buyers make the decision to refinance, it's to take advantage of lower interest rates to lower your monthly mortgage payment. The points you paid at closing on your current loan aren't relevant to a refinance. Instead, you should consider what you're going to save going forward. Compare APRs when deciding between loans. Quicken Loans refinancing calculator will help you estimate your new mortgage payment.
Jordan Fylonenko is a writer with Quicken Loans who specializes in articles about FHA Streamline Refinance, Mortgage Refinance, VA Loans and other home-buying related information.
Advantages of Living in a Golf Community
You may have noticed that golf course communities are on the rise these days. Living in this kind of community is great for people who are seeking a more relaxed atmosphere, away from the bustle and hustle of living in the city.
There are many advantages of living in a golf community, and the items below are some of its advantages.
1. The eminent advantage of this kind of community is the golf course itself. Living here gives you an opportunity of easy access to the greens anytime of the day.
2. A golf course community does not only offer a golf course for its residents but also feature many amenities as well such as swimming pools, walking trails, equestrian opportunities, hot tubs, and basketball and tennis courts. Some communities even offer driving ranges and golf lessons.
3. A golf course community has different kinds of houses. You will be delighted to find villa-type homes, grand homes, condos, single-family, town homes and apartments. You just have to look around the place and find the home of your dreams in this wonderful community. Several home choices eliminate the belief that only the rich and famous can live in a community like this.
4. Safety is another great advantage of living in a golf course community. These communities are private and gated. One does not have to be an avid golfer to appreciate safety living that adds years and quality to life.
5. Most of these communities are considered small cities since they have more amenities and facilities like stores, shops, restaurants, spas and many more. You can enjoy all these amenities in peace and quiet.
6. Living in this community gives you the advantage of a serene and beautiful surrounding. This place is not limited only to golf lovers and enthusiasts but for people who want to live in a lush and green environment to be able to enjoy and breathe fresh clean air.
7. Besides a chance to socialize with other residents, the community can also be a place for business opportunities. Considerably, the people living in this neighborhood are primarily affluent people and may own or run a business that is related to what you are planning to venture. The neighbors could turn out to be perfect as your market audience. Since you live in the same community, it might be safe to assume that your priorities and values are the same. You can easily find people who will be eager about your business idea. Catering to the needs of the people can easily turn into a booming business.
8. Most golf communities offer special course membership to residents and some offer exceptional green fees. Since these helps a lot in increasing property value, it would be reasonable to buy a home in this kind of community.
9. You could consider buying a property in this community as a vacation place or your permanent residence. You could even have your property here rented for additional income. Whichever, you are assured of a chance to live luxuriously. Comfort, style and safety are the main attributes of investing in a golf course community.
Discover wonderful golf course communities:
Southern Phoenix Metro AZ Golf Course Property,
Avondale Golf Homes and
Club West Golf Real Estate
One of the more challenging aspects about working in the mortgage business these days is the inability to help everyone that deserves it. Today's mortgage market is very unforgiving to those who have stumbled on hard times. One of the questions I am asked by my clients most often is can I refinance my home with bad credit?
