Pay No Closing Costs for Refinancing - The Advantages of a No Closing Cost Loan

If you hear the term "Absolutely No refinancing mortgage Cost," you would assume that there are no closing costs (lender, escrow and title) involved in the loan. But actually this is really just a creative way of marketing or selling this type of loan. Is there really a absolutely no closing cost loan?

No, there is none, because when you buy or refinance your loan mortgage brokers and lenders have to make a living. And if they dont charge you anything, that is not because they are doing it for free. They need to get compensated and they charge it to you one way or the other. Typically, they will charge you a slightly higher rate, maybe .250-.500% higher than the best prevailing rate. The higher rate will cover for all the closing cost that the Mortgage brokers needs to pay for.

This doesnt mean, though, that this kind of program is not beneficial for you. Actually, I always recommend this loan especially for those who have just paid closing cost to purchase their home or refinance their home. This is to avoid paying closing cost over and over again, wasting all that cash on closing costs that could have added to your equity.

Plus, if you do not pay any closing costs, then you can keep refinancing and refinancing without decreasing the equity of your home. Of course, not every borrower is eligible for this no-closing-cost program. Normally, to be able to lower your rate by .500% without having to pay any cost, potential candidates have to have a loan amount of over $200k.

You always have to consider how many times you have refinanced in the past and figure out how much you have paid already. In the past two years, we have numerous clients that have refinanced their loans even only reducing it by less than .50%. Why did they do it? Because there is absolutely no cost involved and if your loan balance is over $400K that could be almost $100 difference in the payment every month, without any cost.

I always recommend that if you are to refinance your loan, do it sooner and try to get a more stable loan to avoid having to start your loan over again. Why right away? If you think you will have to refinance, that means that the refinancing mortgage you made to your existing loan are all gone and you will have to start over again. For example, if you have a 2 year fixed rate loan, you know that this is a temporary loan, why not do it right away to avoid paying any more payments to your current lender? If you had paid 12 payments and have to refinance to a new loan, that means you had paid a total of 31 years after all is said and done. I am sure a lot of you are starting loans over and over again for many reasons, but these rates have stayed low for you to take advantage of, so grab it while you can.

If you have a lot of equity and feel that you will live in your property for the rest of your life, and you are also being offered a really low interest rate, then you may consider paying closing cost to get this loan. But if it's short-term, then we will need to calculate to see how long it will take you to break even from the closing cost that you paid upfront. Sometimes it will take you 5-10 years to break even and most of the time, by then you are already ready to move on to your next home.

In every loan program, the key is to understand what you are being offered and getting into. Let me explain a little more regarding the two different types of closing cost.

One is Re-occurring Closing Costs. These are your interest, taxes and insurance costs of the loan. When you are buying a house, the lender will always require you to buy a year of hazard insurance, to be paid with your closing. When you are refinancing, you will also be required to prepay a year at closing, if there is an overlapping of premium due dates, your insurance carrier will usually credit the balance back to you. Interest payments are also collected for both purchase and refinance loans, we always pay our interest in the rear of the month of our mortgage payments. When someone offers you a free month of mortgage payment or for you to skip a month of mortgage payments, they are not explaining the loan to you properly. Again their are no free rides.

Another common Re-occurring Closing Cost is your taxes. Again, for purchase and refinance, you will always have to prepay property taxes that are due.

The second form of closing cost is the Non-reoccurring Closing Cost (NRCC). These are your points, lenders costs, escrow and title charges. When you are purchasing a house, your NRCC are typically tax deductable in the first year of purchase. While a refinance transaction will allow you to write off the closing costs over the term of your loan. That means if you had paid $5,000.00 in closing costs on a refinance, you will write off on about $166 per month on a 30 year loan.

I read an article in the LA Times a few weeks ago with startling statistics that people now are thinking of not paying their loan off, and would rather borrow as much as they can and as long as they can. To me, that is a trap just like your credit cards, how many people have fallen victims to that credit card money pit. Keep in mind, we are all enjoying high home values and equity, which I suppose should be called High fly on borrowed Sky. Once the correction on property values occur (and they will if what the think tanks are predicting comes true), you're going to need some cushioning for emergencies. Lines of credit again are to be use for short term only and not for buying cars, boats or doing major improvements to your home. They are adjustable rates that have only one direction, and that is to the roof. Please also try an fully understand your 1% loans. I just spent at least two hours explaining to a client who wanted to apply for these 1% loans. In her case, it was beneficial for her and I am putting her in with a good index adjustable loan that is tied to COFI.

Ken Go has been running his southern California home loans business since 1987. His honesty and courtesy equal loyalty to his customers. Forget about "good faith estimates." With 1st Innovative Finance Group, all loan rates and fees are guaranteed upon application. Ken Go writes a California home loans blog for anyone who might want free advice about financing a home with a mortgage. Ken speaks English, Chinese, and Filipino (Tagalog).

Refinancing Your Adjustable-Rate Loan

There is a lot of negative press out there about adjustable-rate mortgages today and much of this is due mortgage refinancing the sub-prime crisis that is on going and has devastated the lives of many, many people. While there is a lot of bad press out there, you needn't be too worried if you have one of these loans. Instead, you might want to look into refinancing mortgage refinance as this may help you get out of one of these loans before you run into trouble.

Mortgage Refinance for Stability

It can be quite scary to have an adjustable-rate mortgage when you hear about all of the people who are in crisis as a result. Many people are running out to learn about mortgage refinance because they don't want to run into trouble. While this is a viable option you should learn more about your loan before you decide to trade it in for another. While adjustable rate loans have gotten a bad name through much of this, they are still a great option for a lot of people.

Before you go out and apply for mortgage refinance you should consider your loan. If you have one of these loans and you are still in your introductory period you may not be able to beat the current interest rate that you are paying because it is lower than market value. If you only plan on being in your home for a few years you might be able to keep the loan that you currently have because you won't have it for long enough to suffer from large adjustments in the interest rate that will cost you. If you are only going to be in your home for a couple of years it makes sense to pay the lowest interest rate possible because you aren't interested in paying large amounts of the principal.

If you are going to be in your home for more than five or six years you may want to look into the benefits of mortgage refinance. The fact of the matter is that most people see huge increases in their interest rate when they have an adjustable-rate mortgage and sometimes they cannot afford the adjustments. The longer you are going to be in the home the more chance you have of not being able to afford the adjustments.

When you look into mortgage refinance for your adjustable-rate mortgage, you are likely looking for more stability. See if you can find a fixed-rate mortgage that will offer you a reasonable monthly payment that will not raise your payment too much from what it is now, but still have it be something that will provide you with the stability that you are looking for in a home loan.

Make sure that you really put some thought into whether or not refinancing is right for you. Some people find that when they look at all of their options that they really are better off where they are and others will find that they can save a bundle, and ultimately have a better financial situation when they refinance. You need to do the math and the research and determine what is the most advantageous for you because you are the only one that can really decide what is best for you.

Refinance.com is managed by a group of professionals in the Mortgage refinance field who are able to provide the best available deals as well as expert advice, to learn more visit our site at http://www.refinance.com/

Caution Homeowners - Stay Away From Mortgage Scam Artists

When you are hurting, you want to stop the pain, whether financial or otherwise. When focused on getting relief, you are most vulnerable to a scam. If financial troubles make paying your mortgage impossible, even temporarily, almost anything to stop the constant collection calls can be extremely appealing. That is when mortgage modification scam artists target consumers.

Locating their victims is easy. Victim contact information is publicly advertised when a foreclosure begins. Scammers can subscribe to digital foreclosure lists ready for mass mailings. Since crooks ignore foreclosure prevention laws, many of these outfits work across state lines, targeting consumers anywhere in America

Millions of homeowners will face possible foreclosure in 2009. Thieves offer legitimate sounding plans that claim to save your house. Think about it; it is easy to promise anything if you have no intention of keeping your promise. You, desperate to keep your family in your home, fall victim to their tantalizing advertisements. Add the soundbite confusion over the various government "Making Home Affordable" stimulus plans. It is no wonder homeowner confusion about their options is nearly complete. This is a near perfect recipe for the enterprising scam artist.

Whether they call themselves Mortgage rescue specialists, loan modification specialists, loss mitigation specialists, or some other solution sounding name, the outcome from a scammer is always the same: you pay $$$, but nothing happens. You lose money you can ill afford to risk and your problem grows with the passing of time as your lender proceeds through the steps to recover their investment. You can lose your money and your home, even while doing what you believe will correct the problem.

Here are some SCAM RED FLAGS to help you stay clear of these vultures:

• SCAM RED FLAG! Foreclosure filings are public record. Crooks easily harvest basic information on at-risk homeowners. Be wary of anyone who calls you to offer a rescue plan. Scam artists say all the right things. They often use a company name that sounds legitimate or even official. Play it safe and only speak with companies where you initiate the call, such as to your friendly mortgage broker.
• SCAM RED FLAG! Never pay a fee before service is delivered. Fees of $2,000, $3,000, and more are common. Whether or not your lender will approve any loan modification request is entirely up to them.
• SCAM RED FLAG! There are no loan modification guarantees. Not only can you lose thousands of dollars, but perhaps your home as well.
• SCAM RED FLAG! Don't sign any documents on the spot. If someone tries to rush you into signing, show them out. Have your attorney review the agreement before you sign anything.

Part of the government plan depends upon whether your loan is carried by Fannie Mae or Freddie Mac. How do you know? To learn if your loan is owned by Fannie simply call (800) 7FANNIE. For Freddie call (800)-FREDDIE.

Once you have this answer, you next need to know if you qualify for one or more of the available federal housing programs?

• Check your eligibility on line at www.financialstability.gov

When you need impartial help to understand your options, the National Foundation for Credit Counseling (NFCC) has the largest network of certified housing counselors in the nation. Some of these counselors have decades of experience, deal with homeowners and lenders all day every day, and fully understand how to make the new housing plans benefit those who are facing foreclosure. And, equally important, their help is free of charge.

Don't fall for a hollow promise from a scam refinancing mortgage when you can have substantive help for free. To locate the NFCC Member Agency housing counselor closest to you, call toll free to (866) 687-6322, or go on line to www.MortgageHelpNow.org where you can also find more information about mortgage rescue scam prevention.

Other sources of responsible assistance may include your attorney or your financial adviser. These professionals can provide you with effective assistance, although they will send you a bill for their services.

Your home is important to you and your family. Yes, bad things happen to good people too. You may need a hand up from time to time through no fault of your own. mortgage refinancing key is to seek competent assistance from sources such as NFCC or your attorney. If you do decide to retain some sort of mortgage loan assistance company, at least check them out carefully with the Attorney General office in their home state, your state, and the District Attorney's office in their home city. A bit of time doing some Google searching can also pay dividends.

Stay smart. Stay safe.

Bruce Forge
All Cities Investors Group Inc.
http://AllCitiesInc.com/

Bruce has over 40 years in the mortgage and real estate industry. He has helped hundreds of families and investors obtain homes and investment properties of many types. He is based in Southern California.

Home Mortgage Refinancing - When and Why Should I?

When you refinance a home loan, all you are doing is getting a new loan, ideally with better rates terms or conditions, and replacing your current home loan with it. Refinancing a home mortgage is a great way to take advantage of lower refinancing mortgage rates, or improved credit and reduce your monthly mortgage payment by hundreds of dollars. A home refinance in which you get a better interest rates will free up a lot of extra money which you can use to further reduce or pay off other debts or financial burdens. Also, refinancing out of refinancing mortgage ARM (Adjustable rate mortgage) and into a fixed rate mortgage is a great way to stabilize monthly expenses and lock in a low interest rate. Refinancing a mortgage and getting cash back from the equity you have built up is also another popular option.

Many homeowners who are facing large cash expenses such as medical bills, tuition, large expensive credit card debts, use a cash out refinancing option to get the money they need. As an example, say your home is worth $200,000, you $100,000 and you have 15 years left to pay on your mortgage. You could refinance into a new loan which is for $150,000 and pay it off over 20 years, while pocketing the $50,000 difference. This money can then be used to pay down other debts, or used for home improvements to further increase the value of your home.

When should you refinance your mortgage?

You should look into refinancing a home loan when you notice that current average interest rates are significantly lower than the rates you have. Or if you know for certain that since purchasing your home your credit has improved. If you have an ARM loan and have seen the interest rates rising and starting to get out of control. Of course if you have a large debt and need a good amount of cash you already are aware of the refinancing option to get cash back. Generally, a good rule of thumb to follow is that if you can get a interest rate that is 2% lower than your current interest rate, you will usually save hundreds on the mortgage payment every month through a proper refinance.

Refinancing a home mortgage the right way can save you a whole bunch of money on you mortgage payments every month. Be aware though that refinancing a mortgage the wrong way will cost you a lot of money and sometimes you home. A little patience and basic research on potential mortgage lenders, your credit history, and refinancing terms and conditions will be your best bet to ensure the absolute best refinancing deal you can get.

Home refinancing can save you thousands or if it is done the wrong way cost you thousands. Greedy mortgage lenders will try to suck you dry if you let them. Learn how to properly refinancing a home mortgage and walk away happy and with more money.

Mortgage Loan Processor Checklist

Since people cannot help but to seek for more things, a lot of them would go for mortgage loans just to satisfy either their wants or needs. But no matter which area refinancing mortgage being satisfied, one thing is for sure and that is the truth that applying for this kind of loan can in fact free someone from the stress of thinking where they can find the money that they need.

As a rule of the thumb, it is helpful to gather all personal, property, and financial, information in order to choose which lending company is the best to go for. The moment when you are already decide about which company to get, you need to ready our mortgage loan processor checklist by giving the following information:

1. Personal Social Security refinancing mortgage
2. Income information which should comprise of your salary, commissions, dividends, overtime, bonuses, retirement, interest, and various other source of ongoing income
3. Your home address(es) for the last two years
4. Employment information for the last two years which should comprise of employer name, phone number and address.
5. Your liquid assets which should include the bank name, balance, account type, and source of down payment
6. Your other assets like the value of bonds, stocks, retirement funds, life insurance, automobiles, jewelry, and various others.
7. The list of your real estate owned which may comprise of your property address, outstanding liens, market value, mortgage payments, rental income, taxes, insurance and maintenance dues.
8. Personal liabilities like your creditor names as well as outstanding balances for your entire list of debts like notes payable, life insurance loans, 401(k) loans, alimony, stock pledges, co-sign loans, child support, credit union loans, and various other liabilities.

Once you get the loan, it is sensible to use in wise manners. Do not spend it on your personal 'wants' because you will later on find out that you're trap in a deeper problem. Most people would fall on this trap; they will become too excited in using the money that they failed to realize that the time will come that they need to repay what they've acquired. It is best to think first before spending and analyze the situation first if you really need to spend some money. Do not be an impulse buyer; you are better than these kinds of people.

Also, never ever escape payment schedule. If you have to tighten your belt first so your monthly budget will be enough to get you through another month then do it. Remember that loan companies will charge interest. You should avoid this because in the end, you will realize that you've spent a big deal of money just by paying interest rates. If you have to budget your monthly expenses then do not think twice. Its better to skip some personal whims than have a new LV speedy monogram bag but end up having the lending company getting through your phone all day and night just for you to pay your financial obligations.

Learn Everything you Need to know about mortgage's at Top Mortgage Advice Get Access to a large selection of Free Mortgage Advice with new content everyday.

Will the Mortgage Repayments Get Easier?

If you are one of the millions of people in the United Kingdom with mortgage refinancing mortgage, you will know all too well that the declining financial situation of the country is still the most talked about financial news at present. Thankfully the British government seems to be making it a priority to get the situation sorted.

We're all finding that making compulsory payments such as the mortgage, utilities bills and food are more difficult than ever due to us having to stretch our money further than ever before.

So if you are struggling, you are no doubt very happy to hear that Gordon Brown is planning to slash the taxes of the United Kingdom. Quite how many are going to go is yet to be seen, but it's a well shared hope that the change will give us a little bit more cash to manage with. If the economy gets better with the plans the government has to make things easier we will see the effect of the housing market as a whole improve.

We've already had stamp duty be made unnecessary for a large amount of home owners as the margins for who has to pay were placed much higher. This means that homes that would have once required stamp duty are now exempt to the rule so they can avoid yet another blow to their wallets.

We can only hope that the British government plans to continue the effort to end the financial spiral we all seem to be stuck in. If the taxes work, there is a chance that once we can level ourselves out and actually start spending again. In time the economy can begin to build itself up to where it once was, though it will still take time and patience on parts of both the general public and the financial lenders.

When looking for a mortgage Mortgages be sure to compare online and be aware of the deals available. You can choose anything from a remortgage to offset mortgages.

How First Time Buyers Can Get Help With a Shared Equity Mortgage

The government announced from early 2009 financial support will be available to first time buyers to help them buy their first property. Welcome news for those struggling to secure a mortgage as well as for the fledging house developers. The house developers will be funding part of the loans, however they will be receiving much needed cash flow for them, helping to avoid making employees redundant and helping reduce their potential losses from homes they have built and are lying unsold.

If you have been struggling to meet the tightened lending criteria, with the higher mortgage refinancing requirements being asked this new scheme can help. If your household income is less than 60,000 you will be eligible for a shared equity mortgage. You can get a mortgage refinancing which will be free of interest for up to five years. It can be used to pay the deposit on the property and can cover up to 30% of the purchase price.

I am sure everyone will agree it is fantastic news for everyone, house hunters, house developers and the local economy. The only doubt at the moment - will mortgage lenders agree to the terms of the scheme and issue a shared equity mortgage?. As the government is backing the scheme let's hope lenders are happy to lend the funds, with the government shareholders in many of the big banks and a majority shareholder in one they should be able to use their influence to ensure the scheme is a success.

It is worthwhile to make regular enquiries into the mortgage rates available; lenders are changing their offers even more frequently at this time as interest rates shift more frequently. Making use of a mortgage broker is a pain free option. A mortgage broker that will search the whole of the mortgage market will ensure you are getting the best deal for you and it worthwhile doing about six weeks prior to a fixed rate ending so you have adequate time to switch to a more competitive rate. As well as taking advantage of their expert advice they can advise you of the lenders offering shared equity mortgage options and those supporting the new government support scheme.

Chris Borthwick writes articles covering a broad range of subjects. His main area of expertise is mortgage advice and writes many articles on mortgages for finance industry, mortgage brokers and for the general public, recent articles including getting mortgage quotes and running a mortgage search.

Homeowners Under FHA Loans Have a Long Road to Effective Loan Modification

If your mortgage is under an FHA loan, there may be FHA loan modification options open to you. Many homeowners who are uninformed but on the road to foreclosure fear that FHA home loans are ineligible for modification, but under the Housing and Economic Recovery Act passed in 2008, FHA lenders were given the permission and funding to accommodate loan modification.

FHA loan modification stretches the mortgage through up to a thirty year period with a lower, fixed interest rate to make mortgage refinancing possible for millions of homeowners to keep their homes. In order to be eligible for an FHA loan modification, under the Streamlined Modification Program, a homeowner must:

- Be at least three or more months behind on their mortgage payments.
- Not be in bankruptcy.
- Reside in the residence they want the FHA loan modification to cover.

Also, the mortgage must have been taken out prior to January 1, 2008 and the current value of the property must be no less than 90% the initial value.

An FHA loan modification entails: extending the loan for as long as appropriate with the new interest rate, reducing the interest rate to a minimum of 3 percent (if appropriate), and a balloon payment when the loan is paid mortgage refinancing matures, or goes through refinancing.

Loan modification seems to be the answer for millions of homeowners who are on the verge of losing their homes to foreclosure, whether their mortgages are through FHA or other lenders. However, as it stands now homeowners under FHA loans are finding it exceedingly difficult to get loan modifications and steps are being taken to make it easier for everyone to receive loan modification assistance.

Because the FHA loan modification standards under the Housing and Economic Recovery Act are ridiculously strict, the Obama Administration is currently pushing to allow FHA loans to meet other loans' standards under the Home Affordable Modification Program. Many homeowners, under FHA mortgages or otherwise, are living on property which has fallen far below 90 percent of initial purchase value. There are even properties which have fallen to or below 50 percent of their previous value -- quite a far cry from 90 percent.

The FHA loan modification program under the Housing and Economic Recovery Act has fallen flat on its face since its launch in October, helping only handfuls of families across the country. No progress towards recovery for the housing market can be made unless loan modification is made more accessible for those who have property covered by FHA loans.

If you are a homeowner covered by a FHA home loan and your property value has plummeted like the rest of America's, hold on tight. It's going to be a long and bumpy ride for you to recovery

For more information about home loan modifications, visit the #1 loans modification resource on the net: http://HomeLoanModifications101.com

Obama's Homeowner Stability Plan - How Can President Obama's Stimulus Package Save Your Home?

President refinancing mortgage has come on refinancing mortgage chair in a scenario where the US people are going through a sheer financial dip. Neither the markets are high not the economy. The statistics say that today the 10% of the home owners are facing a foreclosure. The rest 9 are soon suspecting one. The reason is simple - the income has gone down, the companies are crashing & people are losing their jobs, and the property market is also fluctuating. The house is no longer worth the amount you are paying for it.

Now Obama has come up with the Home Owners Stability Plan. Declared on February 18, this plan has come in to execution on March 4, 2009. This plan can actually help several home owners to stabilize themselves and save their homes from the foreclosure. Under this plan, the US Federal Government has issued $ 75 billion to help the home owners in need.

Here are the key pointers of Obama Home Owners Stability Plan:

For every loan modification that the lender or the mortgage company does, they would get $ 1000.

The Obama policy has stressed on the fact that foreclosure does not favor either of the parties, that is the borrower & the lender. So, they have indeed favored loan modifications.

Earlier the property owners could apply for loan modification if they owned 20% of the equity. Now, irrespective of that figure, in case the current market value of your property is lower than 105% of the mortgage amount, you are legible for the loan modification.

The monthly payments for the home can not exceed 31% of your monthly income.

The total monthly payments made towards home, car loan, credit, etc. all together must not be more than 55% of the pre tax income.

The Obama government has provided several counselors under the HUD department that help you negotiate with the lender at zero cost. You must prefer them over the private companies who earn loads of profits from you.

The only limitation that you see in this policy is that all these pointers would help you only if your mortgage plan is insured or owned by the Fannie Mae & Freddie Mac.

President Obama has offered $1000 incentive for home owners that opt for Loan Modification instead of Short Sale Or Foreclosure. To know more about Latest Loan Modification Programs and to check if you qualify

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