Refinance > Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money

Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money

by: Carrie Reeder

Saving money with lower rates isn?t the only reason to refinance. Opting for a shorter loan can also save thousands in interest and free up income in the future. A short term loan can also help you pay down your principal quicker.

Better Rates

A 15 year mortgage has a better rate than a 30 year mortgage offered the same day ? usually by a quarter of a percent. However, even if rates are the same as your current mortgage, refinancing to a shorter mortgage can save you thousands in interest by paying off the principal sooner. Your monthly payments will be slightly larger, but that is because a larger portion of the balance is being paid.

Offers Self-Discipline

Short term loans make your decision to pay off your mortgage official. For those that have a hard time making extra payments on their mortgage, a short term mortgage may be the answer.

It is helpful to first look at your long term financial goals. Perhaps you are planning to pay for kids? college tuition, to retire, or to reduce your debt load in the future. Decide when you want your mortgage paid off and look at the monthly payments. You can choose a number of periods ? 15, 20 or 25 year home loans.

Factors To Consider

Low rates aren?t the only factor to consider when deciding to refinance, the payment period is also important. By simply making larger principal payments, you get rid of your loan sooner and save money on interest payments. Additionally, reducing your debt level by paying off your mortgage also improves your credit and financial situation.

However, you should also remember the immediate impact of a short term mortgage. A larger monthly payment can put a strain on your monthly budget. You may also find that if you plan to sell your home within a couple of years, you will not recoup the cost of refinancing fees.

You are also limiting your financial flexibility. You are committing yourself to a larger principal payment. You could choose to simply pay down the principal when you have the available cash.

In the end, short term mortgages do have their benefits and should be considered when you plan to refinance.

About The Author

Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.

View our recommended mortgage http://www.abcloanguide.com/refinance.shtml lenders.

What is a Reverse Mortgage?

by: Stuart Simpson

Simply stated, a reverse mortgage is a loan that enables homeowners (age 62 and older) to convert part of the equity in their home into a tax-free income without having to sell the home, give up the title, or take on a new monthly mortgage payment.
More and more homeowners are using this to supplement their retirement income, pay for health care, modify their home, or just get some cash for emergencies.
Since this is a new product, some people have misconceptions of what a reverse mortgage is.
The bank doesn?t give you money and take your house.
Let?s look at some of the most common questions.

Are reverse mortgages for desperate people?
No.
It is an excellent financial planning tool used from people of all walks of life.

How do I qualify?
You must be 62 or if both parties are on the mortgage, then you both must be at least...

What is a Reverse Mortgage?

Refinance > What is a Reverse Mortgage?

Poor Credit Mortgage Refinance - Refinancing Your Home After Your Credit Score Has Dropped

Poor Credit Mortgage Refinance - Refinancing Your Home After Your Credit Score Has Dropped

by: Carrie Reeder

You can still refinance with bad credit, but you will need to shop around. Each refinance application is looked at on an individual basis. So even if you have bad credit, other factors could qualify you for a low interest rate. However, if you don?t apply, you will never know.

Reasons To Refinance

If you bought your home with good credit, you probably found reasonable rates. But you still may be able to lower your rates by refinancing. You can also lock in rates by converting to a fixed rate mortgage.

You can also lower your payments by extending the terms of your loan. You may also choose to tap into your equity through a cash-out mortgage. You can use your equity to pay off bills while writing off the interest on your taxes.

Qualifying For Refinancing

Just because you have poor credit, doesn?t mean you can?t...

Poor Credit Mortgage Refinance - Refinancing Your Home After Your Credit Score Has Dropped

Refinance > Poor Credit Mortgage Refinance - Refinancing Your Home After Your Credit Score Has Dropped

Saving Money with Loan Refinancing

Saving Money with Loan Refinancing

by: John Mussi

If you find yourself paying more each month in loans than you think you should, you might want to consider refinancing one or more of your outstanding loans. By refinancing, you might be able to save money on interest rates, extend the amount of time that you have remaining to repay the loan, and even receive better loan repayment options than the ones that you currently have.

Though refinancing a loan is a fairly common occurrence in today's financial world, there are a number of individuals who aren't familiar with how refinancing works or whether refinancing is right for them? if you're one of these people, then the information that follows should help you to learn more about loan refinancing and how it can possibly help you.

Refinancing Defined

The first step to knowing whether loan refinancing is right for you is knowing exactly what refinancing is. In most cases of loan refinancing,...

Saving Money with Loan Refinancing

Refinance > Saving Money with Loan Refinancing

12 Quick Tips For Getting A Mortgage

12 Quick Tips For Getting A Mortgage

by: T. O' Donnell

1. Watch out for the 'Deal Of A Lifetime', the deal that seems too good to be true. The company may be saving money by cutting back on their level of service.

2. When getting a fixed rate: get a written statement which details the interest rate, how long the rate is fixed for, and the conditions attached.

3. When interest rates fall: try and leave your repayments as they are. You will therefore be paying more than the minimum each month. You'll repay your loan much earlier.
When rates rise again you may not have to change your payment.

4. Consider a fifteen or twenty year term. Try to pay off your mortgage quickly. Use a mortgage calculator with an amortization function, and see what's possible.

5. Keep your mortgage as small as possible. Aim for *comfortable* affordability.

6. Try not to 'churn' your mortgage. Each time you refinance you'll...

12 Quick Tips For Getting A Mortgage

Refinance > 12 Quick Tips For Getting A Mortgage

Three Rules of Thumb for Mortgage Refinancing

Three Rules of Thumb for Mortgage Refinancing

by: Stephen L. Nelson, CPA

You might think that deciding to refinance a mortgage requires only a quick comparison of loan interest rates. Unfortunately, that?s not really true. Refinancing is trickier than that! Fortunately, three useful rules of thumb can often help you make sense of refinancing opportunities.

Rule 1: Don?t Ignore Total Interest Costs

You really want to use refinancing as a way to reduce the total interest cost you pay. While that sounds simple in principle, it is sometimes difficult to do.
The interest costs you pay are a function of the interest rate, the loan balance, and the loan term period.

When people refinance, they tend to focus solely on the loan interest rate. But they often don?t pay as much attention to the loan term or the loan balance.

When you use refinancing?even refinancing at a lower interest rate?to increase your borrowing or to extend...

Three Rules of Thumb for Mortgage Refinancing

Refinance > Three Rules of Thumb for Mortgage Refinancing

Refinance term life insurance Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money

Home Equity Loans - Friend Or Foe?

by: Max Hunter

Home equity loans are advertised on the airways, newspapers, magazines and just about anywhere else a homeowner may see or hear the advertisement. Some people feel that home equity loans are trouble waiting to happen. Others feel that home equity loans are a key to opening a stronger financial picture and better home.

There is no simple answer to this question. The truth of the matter is that it will depend...

Home Equity Loans - Friend Or Foe? mattress Refinance

Refinance > Home Equity Loans - Friend Or Foe?

Maternity Clothes Trends

by: Kathryn Whittaker

For most women, the most stylish maternity clothes solution is to wear stretch classic jeans and a man?s white oxford shirt. However, the day comes when they face the inevitable: the visit to a maternity clothes store, either for a special occasion outfit, or to browse the plus size maternity clothes section in search for the most flattering solution to their style dilemmas. So what exactly should an expecting mom...

Maternity Clothes Trends Refinance skirts Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money

Refinance > Maternity Clothes Trends

skirt Refinance Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money

My Father's Will

by: Donovan Baldwin

The year was 1981, the state was Florida, and I had just flown back from Germany for my father's funeral. My sister and her family were down from New York, and, a few days after the funeral, we were sitting with my mother in a lawyer's office in downtown Pensacola. My mother had just learned that she didn't have any say over what happened to the money she and my father had saved over the years, and she didn't have any control...

Refinance real estate My Father's Will Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money

Refinance > My Father's Will