How to Know When It's Time to Refinance Your Mortgage

There are many reasons to refinance a home including:

Lower your interest rate to reduce the monthly refinancing mortgage payment;
Shorten the term of the loan to save possibly thousands of dollars in interest;
Take cash out to consolidate other debts.

These are all great reasons to refinance your mortgage, however, a few items should be considered first. A refinance is very similar to when you closed on the purchase loan for your current home. You will need to submit and application, credit will be pulled and you will need to be approved by the lender. Once you are approved an appraisal will be ordered as well as a title examination.

As a general rule, it makes sense to refinance if you can get an interest rate that is at least one percentage point lower than your current rate. Every situation is different and there may be other reason besides lowering your rate that might make sense. For example, if the purpose is to take cash out in order to pay off high interest credit cards, than even if the rate stays the same, it's possible to save money on your overall monthly expenses.

Questions To Ask Yourself:

How long do I plan on staying in this house after I refinance?
How much lower could I get my monthly mortgage payment?
How much will it cost me to refinance?

Once you have the answers to these questions, you can figure out if a refinance makes sense and when you will break refinancing mortgage Divide the cost of the refinance by the monthly savings and you will have the number of months it will take for you to break even after the refinance.

Keep in mind that you do not always have to start the clock over with a 30 year fixed. If you want to stay on track to pay off your mortgage around the same time as when you started, you can choose a shorter term mortgage. For example, if you are 5 years into a mortgage and rates improve, you can take a 25, 20 or a 15 year mortgage to stay on track or even shave off a number of years. A scenario like this could save thousands of dollars in interest over the life of the loan.

It is wise to ask the person who is handling your loan for a good faith estimate along with your mortgage rate quote. This way you can know exactly how much it will cost you to get the payment that is offered. Taking these calculated steps is necessary to know if refinancing now will make sense. Numbers don't lie, so make sure you take the time to do the math correctly and have a clear understanding of your goals.

Mike Dell'Ovo is a licensed mortgage broker who helps borrowers achieve their mortgage goals. If you would like a no-obligation mortgage consultation and a rate quote for your next purchase or refinance, visit: http://www.MortgageWorkbench.com/contact.htm to contact Mike.

What Is Your Home Value? Visit: http://www.LocalPropertyValue.com for your FREE Value Report.

Renegotiating Your Mortgage Terms During the Financial Crisis

For many homeowners, the ability to make their mortgage payment has been reduced greatly over the last year. Homeowners are earning less due to the financial crisis that has companies cutting back on the number of hours that they allow employees to work, yet the cost of living is on the rise - which you probably have already realized as you load your shopping cart each week and find that you are out more and more to pay skyrocketing grocery prices.

So maybe you, too, are having trouble meeting the demands of your mortgage payment each month. Perhaps you even bought your home during the subprime mortgage boom - and now you are stuck with a payment that might be even mortgage refinancing what you had originally thought you would be paying! If so, you can renegotiate the terms of your mortgage to not only save your home from foreclosure, but also to put money back in your refinancing mortgage each month by lowering your payments.

Attempt To Work With Your Lender

Call your mortgage lender to attempt to refinance your mortgage. Let your lender know the reason that you have had either temporary reduction in your income or if you have lost your job altogether. It is altogether possible that the lender can look at your financial situation to work out an amiable resolution that will work for both of you. (Lenders do not want to foreclose on you - the current market is so tough that they would have trouble selling your home anyway. In fact, some banks that were rescued during the early phase of the financial crisis sold mortgage debt off to other lenders at a quarter on the dollar).

How Your Lender Might Help

Your lender can (if he chooses) do any or all of the following to help you keep your home: reduced the interest on your current loan, provide a re-amortization (loan refinancing) on your current loan, grant you a personal loan to allow you to catch up mortgage payments in arrearage, move your past due payments to the end of the loan term, accept a partial payment of the mortgage due, or give you an extended time to get caught up on your payments.

Voting With Your Feet

If your lender is not agreeable to helping you out of your financial situation with your mortgage, you have other options. You can vote with your feet. You may have heard this old adage before - but its actually very true as applied to your ability to find another lender. You can arrange to refinance your mortgage under more favorable terms with a different lender who can give you the rates that you need, and even apply for a longer term, if your needs require it. While its in your best interest and certainly more convenient to stick with your original mortgage servicer, you by no means are required to do so.

You can find many reputable mortgage lenders who specialize in refinancing those borrowers in your same situation online. The Internet provides the perfect medium to connect you with the lender who can help you establish the favorable terms that you need to better afford your home.

Kate Ross has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Unsecured Loans and also in helping people to get approved for Guaranteed Loans for Bad Credit, home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards among many other financial products. For further information, please visit http://www.speedybadcreditloans.com

Refinance Rates

When refinancing an existing loan it refinancing mortgage important to know what the borrower expects from the lender. This factor is important, as Refinance is a process of mutual benefit, to the borrower refinancing mortgage the lender. It is of mutual benefit because the borrower gets a lot of instant money needed for a purchase or investment; and the lender gets the long-term interest that will accrue on the loan.

Today, the Refinance industry is functioning in a highly competitive environment, like other industries. This paves the way for the borrower to shop around and identify the most suitable lender. When doing so, the first thing that comes to the borrower's mind would be, "Is this Refinance plan affordable?"

The single most powerful factor that makes any particular Refinance affordable or not is the Refinance Rate. The Refinance Rate largely depends upon the interest accrued on the Refinance loan. The Refinance Rate is expressed as the Annual Percentage Rate [APR]. APR is the total amount of money repayable by the borrower to the lender on a loan, per annum. Though APR is expressed as a percentage of the Refinance amount that is borrowed, unlike interest rates, it includes additional fees. In other words, APR means the interest fees on the principal plus additional fees. The Federal Truth in Lending Act makes it obligatory for the Refinance firms to disclose the APR in all loan agreements.

Hence, borrowers can use the APR as an excellent basis for comparing the costs of loans and selecting the most appropriate option.

Refinance provides detailed information on refinance, bad credit refinance, car refinance, loan refinance and more. Refinance is affiliated with Refinance Used Auto Loans.

Five Mortgage Refinance Mistakes to Avoid

Here we go again: in response to mortgage refinancing global credit crisis of late 2008, mortgage refinancing Federal Reserve has been given the authority to spend a lot of money in the credit markets to bring down interest rates on mortgage refinance loans. In the words of one broker, the Feds have a giant hammer and they are going to use it to pound interests rates down into the ground. By doing this, they hope to help existing homeowners save money on their monthly payments which will, in turn, stimulate the economy as a whole.

As a result, you will be hearing from your mortgage company (and others) about doing a mortgage refinance. If you are seriously considering doing this sort of deal, here are some common mistakes you'll want to avoid:

1. Not shopping around for the best mortgage refinance deal and staying with your existing lender instead.Contrary to conventional wisdom, your current lender may not have the best deal on a mortgage refinance. Nor will it necessarily be easier to deal with them compared to starting over with a new lender. Often, your existing mortgage company will want you to do all-new mortgage refinance paperwork as though you had just walked in off the street. This is because they aren't really going to hold your mortgage for very long -- they'll just turn around and sell it on the secondary market (and making a commission on the sale). They can do this more easily if they can include a complete application from you in the package to prove that the loan is a good one. Therefore, regardless of how good a customer you have been, your lender will have to verify your financial position all over again.
2. Signing your loan documents without reviewing them. Do your homework before coming to the closing. You will not have enough time to review these papers during the actual closing. So review them in advance. The last thing you want is a surprise.
3. Not considering the break-even point on your mortgage refinance.Do you know how long it will take for you to recoup your up-front transaction costs? For example, let's say your mortgage refinance transaction costs are $3000. Let's also say that you will be saving $100 per month on your monthly mortgage payment. Divide 3000 by 100 and you'll see that it will take 30 months to save enough to pay back what you spent in getting the mortgage refinance in the first place. So ask yourself: are you planning on staying in your house for the next two-and-a-half years? If so, you'll recoup your costs. If not, consider a different deal, one with lower costs or a better interest rate with greater savings.Granted, this is just a simple example. Your situation may be more complex. For example perhaps you currently have an adjustable-rate mortgage, or you may be doing a mortgage refinance from a 30-year term to one that is only 15 years. If this is the case, the break-even point may be harder to calculate.Also, you may not be doing a mortgage refinance simply to lower your payment. Perhaps you are doing it to pull cash out of the equity in your home in order to consolidate multiple debts into a single payment. If so, a break-even analysis on your transaction costs may not be that important to your decision.
4. Not giving your mortgage company the mortgage refinance documents on time.When your lending institution requests that you provide them with additional documentation (i.e., income and expense statements, verification of employment, etc.) don't procrastinate. Send them along right away. The last thing you want is to be the reason that a costly delay occurs.
5. Not getting an estimate of your mortgage refinance closing costs in writing.Once your mortgage broker or lending institution approves your application, the law says they are required to give you a written statement of what your fees will be for the mortgage refinance. This statement is called a "good faith estimate" (GFE). Bring it with you to the closing when it is time to sign all the final documents. If the fees are significantly higher at closing than what is shown on the GFE, then you should insist that they be brought in line with the GFE.

In conclusion

By the time you begin to think about a mortgage refinance, you have a lot at stake in making sure it goes smoothly. Use this checklist to avoid some of the more common mistakes people make when trying to get a mortgage refinance on their home.

For more info on mortgage finance mistakes, visit Ara Rubyan's Focus on Refinance blog.

Ara Rubyan is like you: a consumer who has tried to educate himself on the full range of mortgage refinance options available today.

Now, he's put all his research (so far) in one convenient location and he's sharing it with you, no strings attached. Visit his website. You'll find:

Lots of articles on various mortgage refinance topics;
Videos;
Latest news on mortgage refinance resources;
Your questions, answers and suggestions.

Go on over to Focus on Refinance and have a look.

What is A Mortgage?

What is a mortgage? It seems like a simple enough question, but oftentimes many people seem refinancing mortgage be ignorant as to what they are actually agreeing to when accepting a mortgage. Webster's Dictionary defines a mortgage as "a conveyance of or lien against property (as for securing a loan) that becomes void upon payment or performance according to stipulated terms." In simpler terms, a mortgage is an agreement. The bank agrees to lend you an amount of money to purchase a home and you agree to pay that money back, with interest, over a certain period on months (usually 360 months or 30 years). The money that the bank lends you is secured by the home you are purchasing. This means that if you fail to make your monthly mortgage payments as you agreed to do, then the bank can foreclose on your mortgage and take your home away from you.

There are several different types of mortgages designed to offer borrowers a wide range of choices when structuring the terms of their loan. The first and most common type of mortgage is a Fixed Rate Mortgage. This mortgage has an interest rate that is fixed (remains the same) for the entire length of the loan (usually 15 or 30 years). This type of mortgage will allow the most stability for the borrower as their monthly mortgage will always be the same. The majority of home buyers will use a fixed rate mortgage.

A second type of mortgage is known as an Adjustable Rate Mortgage (ARM). This mortgage has an interest rate that adjusts or "recast", meaning that it may increase or decrease depending upon what is going on in the financial market. These adjustments will refinancing mortgage at set points in time over the life of your mortgage, sometimes as often as every month, but more often every 6 or 12 months. An ARM will give a borrower a better starting interest rate than a fixed rate mortgage however it also offers less stability as the interest rate has the potential to raise higher than that of the fixed rate loan, often by several percent.

A common compromise between the fixed rate mortgage and the ARM is what is known as the Hybrid ARM. This is an adjustable rate mortgage where the starting interest rate is fixed for the first 2, 3, 5, 7, or 10 years and then adjusts either every 6 or 12 months thereafter. These ARMs are often referred to as 2/28, 3/1, or 5/6 ARMs. The numbers in these designations refer to the terms of the adjustments. For example, a 2/28 ARM is fixed for the first two years, adjust one time, and remains at the new adjusted rate for the remaining 28 years of the loan. A 3/1 ARM would have a fixed rate for the first 3 years and then adjust every 12 months (or 1 year) thereafter. Finally, a 5/6 ARM will have a fixed rate for the first 5 years and then adjust every 6 months after that. These types of ARMs can offer a borrower short term stability while also providing them with a lower starting rate than a normal fixed rate mortgage. They are ideal for borrowers who will not remain in a home for more than a few years.

Lastly there are Interest Only Mortgages. These mortgages can be fixed rate or ARMs and will have an extra monthly payment option. You can chose to pay the normal principal and interest mortgage payment or you can chose to pay only the interest on that month's payment. This payment option can last for up to the first 10 years of your loan, depending upon the lender who you use. There are a few variations on this type of mortgage, including the Option ARM, which has received a lot of press these last few years. All types of Interest Only mortgages are designed for one reason. They are meant to give a money savvy home owner the ability to free up some extra cash from month to month to spend on other investments. These mortgages are not designed to allow a borrower to purchase more home than they can afford, although that is exactly how they have been misused over the last few years.

Each of the types of mortgages listed above has its pros and its cons. Understanding the differences between them is essential to getting the mortgage that is right for you and your situation.

John Worley is residential/commercial loan officer with over 5 years experience in the real estate business. His background includes residential real estate appraisal and residential/commercial real estate investing. For more information on John's current mortgage services and other helpful informational articles, log on to http://www.rtlgeorgia.com/

Unable to Refinance Your ARM Home Loan? An Adjustable Mortgage Loan Modification Can Save Your Home

Many home owners that have ARM home loans are unable to refinance their mortgage for a variety of reasons. If you are one of these home owners take the time to read this article because it will give you some valuable tips on how to save your home from your refinancing mortgage loan.

Why You Are Unable To Refinance Your ARM Home Loan

• Programs that you once used are now gone. This refinancing mortgage especially true for people who used sub prime loans and or stated and no doc loan programs to purchase their homes
• Your property values have dropped and you now owe more then the house is worth. This is true for many areas around the country especially on the east and west coasts.
• Your credit score is to low. Lenders to day require good to excellent credit in order to approve a loan. Even the FHA which at one time did not have a credit score requirement now wants to see a score of 620.

What Can You Do If You Are Unable To Refinance Your Mortgage

If refinancing your ARM home loan is not an option that you can qualify for the best chance you have at saving your home is by working with your current lender on a loan modification.A loan modification will change the terms of your loan making it either a fixed rate or a making the fixed rate period of your ARM longer.

A loan modification works good for people who are unable to refinance their ARM home loan for the reasons listed above. If you are in a home you simply cannot afford then you want to consider selling it.

If you are Unable To Refinance your ARM Home Loan then head over to http://www.adjustablemortgageinfo.com where there is great information to help home owners in your situation!

Special Considerations for Mortgage Refinancing

You may be experiencing financial problems that could result in foreclosure and the loss of your home. The hardship that caused you to fall behind in your mortgage payments may be due to reasons beyond your control. An experienced loss mitigation counselor can help by partnering with you to find a solution that fits your needs and circumstances and meets the requirements of FHA, VA, FNMA, Freddie Mac, etc.

The following is a list of options (programs) that can offer you solvency and help you mortgage refinancing back on your feet. By enlisting the aid of a qualified loss mitigation agency, you refinancing mortgage find that their services can meet and/or exceed Federal Housing and HUD provisions. Government-backed programs can help you realize real financial relief without the need for bankruptcy, foreclosure or being forced to sell your home below market value and losing your equity.

VA Modification - If you have incurred a long-term financial hardship, the federal government has designed a special program to help VA backed mortgages. The delinquent amount is added to the principal balance and the loan is re-amortized. This generally results in lower monthly payments and a lower interest rate.

Deed in Lieu of Foreclosure - This is another foreclosure avoidance program that allows you to convey (transfer) your interest in the property to the lender, loan investor or the government. (Again, this option is only if you do not want or cannot afford the home.

Modification - This program adds the delinquent interest, taxes and insurance payments to the unpaid balance. If you qualify, you may be able to get help by extending the repayment of the past due amounts over the remaining term of your loan.

The next step is up to you, and please remember that time is very important when dealing with mortgage lenders and the federal government.

Dan Schultz operates American Loss Mitigation, Inc., a consultancy dedicated to helping people prevent home foreclosure. Schultz also trains interested people to become loss mitigation counselors.

Refinance Mortgage Loans

If you don't want to give a continuous monthly payment for your house and want to save money, you can do it by refinancing your home. If you get a refinance mortgage loan you can easily save your money without paying monthly payments. Under a mortgage refinance plan, your present deal is reinstated with a different deal. It supplies its borrowers with many benefits. It decreases the house payment and releases some of the equity built in a lump sum payment or installments.

Mortgage refinance refers to changing the current loan with some other loan. It is capable of giving a positive edge if your credit history is not up to the mark. Your personal lender must be knowledgeable of your history and can suggest you favorable terms of refinance mortgage loan.

There are various types of refinance mortgage loan which you can refinancing mortgage in the market. Through these loans you can refinance your mortgage.

1. Fixed Rate: Here, the interest rate on the base amount is fixed through out the refinancing mortgage of the payment of the loan.

2. Adjustable Rate: This type of loan has changing interest rates depending on the market condition. In this type of refinance mortgage loan, there is generally an introductory rate period where the interest rate is fixed for a few years (3 and 5 years are common) at a very low rate. After this introductory period has passed, the rate becomes a true variable rate, focused on the rates of the market.

3. Fully-amortizing loan: Through this loan the monthly payments are changeable with interest rates, and towards the balance.

4. Balloon Home Loan: The interest rate here is fixed for a set period of time. Afterwards, it works as an adjustable interest rate.

5. Home Equity Loan: This is a fixed rate loan allowing you to tap into your equity while giving you a fund to spend. This type of loan is ideal for mortgage refinancing only if you have enough equity in your home to pay off your original mortgage lender.

When applying for a refinance mortgage loan you need to be careful and to be fully informed. You should know that whether it beneficial for you or not:

- While applying a refinance mortgage loan you must understand about that loan and do some research on it.

- You must have a full control over your debts, and there is no hidden cost.

- Make sure that your repayments will be reduced and not increased.

- Your lenders fully inform you about the consequences of the steps you are taking.

- You are better off as a result of the solution you have chosen.

Several mortgage companies can be able to assist you through relationship with lenders with a mortgage refinance loan. But make sure about the company's performance.

Whatever refinance mortgage loan you have chosen, with fixed interest rates or with variable interest rates, you have to study all the related data to avoid errors which may lead to the loss of real estate. It is also important to find appropriate mortgage loan rates and interest rates among an enormous variety of mortgage loan companies and lenders.

Martin Lukac represents RateTake Refinance Rate marketplace. RateTake matches consumers with multiple lenders offering low rates. Got too much credit debt? Get Debt Help and you'd be surprised what we can do together.

Renegotiating Your Mortgage Terms During the Financial Crisis

For many homeowners, the ability refinancing mortgage make their mortgage payment has been reduced greatly over the last year. Homeowners are earning less due to the financial crisis that has companies cutting back on the number of hours that they allow employees to work, yet the cost of living is on the rise - which you probably have already realized as you load your shopping cart each week and find that you are out more and more to pay skyrocketing grocery prices.

So maybe you, too, are having trouble meeting the demands of your mortgage payment each month. Perhaps you even bought your home during the subprime mortgage boom - and now you are stuck with a payment that might be even double what you had originally thought you would be paying! If so, you can renegotiate the terms of your mortgage to not only save your home from foreclosure, but also to put money back in your wallet each month by lowering your payments.

Attempt To Work With refinancing mortgage Lender

Call your mortgage lender to attempt to refinance your mortgage. Let your lender know the reason that you have had either temporary reduction in your income or if you have lost your job altogether. It is altogether possible that the lender can look at your financial situation to work out an amiable resolution that will work for both of you. (Lenders do not want to foreclose on you - the current market is so tough that they would have trouble selling your home anyway. In fact, some banks that were rescued during the early phase of the financial crisis sold mortgage debt off to other lenders at a quarter on the dollar).

How Your Lender Might Help

Your lender can (if he chooses) do any or all of the following to help you keep your home: reduced the interest on your current loan, provide a re-amortization (loan refinancing) on your current loan, grant you a personal loan to allow you to catch up mortgage payments in arrearage, move your past due payments to the end of the loan term, accept a partial payment of the mortgage due, or give you an extended time to get caught up on your payments.

Voting With Your Feet

If your lender is not agreeable to helping you out of your financial situation with your mortgage, you have other options. You can vote with your feet. You may have heard this old adage before - but its actually very true as applied to your ability to find another lender. You can arrange to refinance your mortgage under more favorable terms with a different lender who can give you the rates that you need, and even apply for a longer term, if your needs require it. While its in your best interest and certainly more convenient to stick with your original mortgage servicer, you by no means are required to do so.

You can find many reputable mortgage lenders who specialize in refinancing those borrowers in your same situation online. The Internet provides the perfect medium to connect you with the lender who can help you establish the favorable terms that you need to better afford your home.

Kate Ross has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Unsecured Loans and also in helping people to get approved for Guaranteed Loans for Bad Credit, home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards among many other financial products. For further information, please visit http://www.speedybadcreditloans.com