Is Home Mortgage Refinancing Really Worth It? - Refinance - Adjustable vs Fixed Rate Mortgages - How To Feel Refreshed All Day and Enjoy Quality Family Time In The Evening!

Refinance > Is Home Mortgage Refinancing Really Worth It?

Is Home Mortgage Refinancing Really Worth It?

by: Steve Shannon

Is it really worth it? Excellent question... since the refinancing process can take upwards of 2-3 months to complete, plus the expenses and hassles of refinancing may outweigh the benefits.

Not everyone should refinance just because rates are lower. The general rule of thumb is to consider refinancing if rates are at least 2% lower than your current rate. This is considered a safe margin.

Also, consider these things...

Are you planning to sell the house at any time? If so, how far into the future? It may not be beneficial to refinance now. Many people who are "in the know" say that it takes 3 years to fully realize the savings from refinancing; considering in all of the costs of refinancing.

Will you have to pay a penalty for closing the current loan? This may be substantial enough to change your mind about refinancing.

Do you have an Adjustable Rate Mortgage? You may want to lock your loan in at the lower rate if you are fairly sure the rates will rarely, if ever, get this low again.

Do you want "Cash Out" to pay other debts, etc.? Keep in mind that if you ask for "cash out refinancing" that the amount of your loan is usually limited to 80% of your home's value. Of course, all things being different, you should check with your lender to see what exceptions may apply. If you need cash, but the straight refinancing option isn't equitable, you might want to consider getting a Home Equity Line Of Credit. This lets you borrow against the equity in your home with a credit account, checking account and/or direct payment.

Is your loan owned by Fannie Mae or Freddie Mac and if so, do you have at least 5% equity in your home? The higher the Loan-To-Value (LTV) number the better for you. Most lenders expect you to have at least 10% equity in your home to qualify. 10% equity in your home gives you have a Loan-To-Value (LTV) of 90%. However, if your loan is owned by Fannie Mae or Freddie Mac, your
LTV could be 95% - meaning you only need to have 5% equity in your home to qualify. Contact the company where your mortgage payments are sent and ask them about your LTV.

Because each situation is unique, there are several more things to consider. Spend a little bit of serious time researching this topic until you are satisfied with the quality of answers you have found in regard to your own situation.

The wrong decision could... well, hurt. The right decision could end up saving you quite a nice little nest egg.

About The Author

Steve Shannon is webmaster at PrivilegedInfo.com.

To learn many more beneficial tips about the home mortgage refinancing process, including the various fees to expect, visit: http://www.privilegedinfo.com/refinancewisdom.html.

Adjustable vs Fixed Rate Mortgages

Adjustable vs Fixed Rate Mortgages

by: Max Hunter

Mortgage rates can either be fixed for the duration of your loan or can be adjustable. An adjustable rate mortgage is a loan that is set up with an interest rate that changes based on pre-determined criteria, primarily tied to the federal interest rate. If the interest rates are up, then your interest rate on your loan will be higher, if the interest rates are low than the interest rate on your loan will go down.

Adjustable rate mortgages (ARM) are generally fixed interest rates for a period of time and then become adjustable. Generally speaking the introductory interest rate for an ARM loan will be lower than a fixed rate mortgage. This is done in order to lower initial payments and allow people to take out larger mortgages, or give them smaller payments for the introductory period. This is attractive to people who may know that their income will be increasing over that period of time.

Whether...

Adjustable vs Fixed Rate Mortgages

Refinance > Adjustable vs Fixed Rate Mortgages

Refinance With Bad Credit

Refinance With Bad Credit

by: Jennifer Hershey

If you have bad credit and believe you are out of luck when it comes to refinancing or purchasing a new home, you may want to reconsider your options.

Just because you have bad credit, it does not mean you will be unable to get a loan, nor does it mean that you are at the mercy of the mortgage companies. You are not.

The mortgage industry is a very diverse one with literally thousands of lenders across the country that just might offer a program that fits your needs.

These lenders that offer programs to consumers with poor credit are known as wholesale lenders.

Wholesale lenders work directly with mortgage brokers, whose job it is to assist you in finding a mortgage lender regardless of your credit score.

It is also the responsibility of the mortgage broker to counsel and educate you through the entire mortgage process.

If you decide that you do not want to do the shopping...

Refinance With Bad Credit

Refinance > Refinance With Bad Credit

Truth About Refinancing

Truth About Refinancing

by: Brian ONeal

Let's face it, not everybody needs to refinance.
With all the hoopla about Low Rates and the Refinance Boom, you want to know the facts.
You want to know when refinancing is right or wrong and why?
Okay, I?ll tell you.

It is actually quite simple. You should refinance when you have credit card debt exceeding $10-15,000, depending on your situation.
Because you will receive a tax credit at the end of the year on your mortgage.
Also, there are programs designed to keep your rate low for one, two, or three years until you?ve saved money on your credit card debt.

You should also look into refinancing if you?ve been in your home for over one year and your interest rate is above 6.5% or if your loan-to-value ratio is at 80% or less. Call a mortgage professional about this. If you do not fit into either of those situations, they you shouldn?t refinance! ...

Truth About Refinancing

Refinance > Truth About Refinancing

Bad Credit Mortgage Refinance

Bad Credit Mortgage Refinance

by: Jennifer Hershey

If you are looking to refinance your mortgage but believe you will be unable to because your credit may be challenged by late payments, bankruptcy, charge off?s, or unpaid medical bills to name a few, don?t worry, there is hope.

There are literally thousands of lenders across the United States that specialize in all different types of mortgage programs for people who have challenged credit.

They are not the typical banks you find down the street from your house that deal with perfect credit only. Nor are they hard money lenders that charge outrageous mortgage rates. They are known as wholesale lenders.

Wholesale lenders work closely with mortgage brokers. Mortgage brokers are the people who work with people looking for mortgages in the way of counseling, educating, and locating a loan for people who find themselves in a unique situation and have trouble finding a loan on their own...

Bad Credit Mortgage Refinance

Refinance > Bad Credit Mortgage Refinance

Be Cautious When Using Your Nest Egg as an ATM

Be Cautious When Using Your Nest Egg as an ATM

by: James H. Dimmitt

About five years ago I moved from the ranks of being a renter to that of being a homeowner. Now, not a week goes by that I don?t receive some type of offer through the mail encouraging me to refinance my mortgage, open a home equity line of credit (HELOC), or apply for a home equity loan.

Payoff High Interest Credit Card Debt! Lower Your Monthly Payments! Buy A New Car! Refinance And Get Money Now! scream the slogans splashed across the envelopes.

The promotional letters inside point out how easy it will be for me to ?get the extra cash you need NOW!? They promise ?no out of pocket costs? with a newly refinanced 30-year loan.

Could I use some extra cash NOW? You bet I could! Who needs high interest credit card debt? Not me, no way, no how! Buy a new car? Hmmm, I like that new Pontiac G6 I?ve seen on tv, maybe in a sleek titanium color with black trim?

For...

Be Cautious When Using Your Nest Egg as an ATM

Refinance > Be Cautious When Using Your Nest Egg as an ATM

How To Feel Refreshed All Day and Enjoy Quality Family Time In The Evening!

by: Neil Teasdale

If you're one of the "still" surprisingly many that just

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you're getting up or going to bed or you wake up with a

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that...

Refinance

Refinance > How To Feel Refreshed All Day and Enjoy Quality Family Time In The Evening!

Contact Lens Wear Is A Possibility if You Have Dry Eyes!

by: Steve Cogger

Two things that never used to go together are contact lenses and dry eyes. It used to be that having dry eyes meant, in simple words, inability to wear contact lenses. Today things are different, contact lenses and dry eyes can and do go very well together.

Having dry eyes simply means that you may have to evaluate a variety of lenses before finding the right kind for you. A qualified...

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Refinance > Contact Lens Wear Is A Possibility if You Have Dry Eyes!

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New Strategy On How To Slash Your Pay-Per-Click Advertising Cost By Half Immediately

by: Seth Chong

So what is Pay-Per-Click Advertising really all about? The following report includes some fascinating information about Pay-Per-Click Advertising--info you can use, not just the old stuff they used to tell you.

Here's a simple keyword building technique I use to find the maximum possible variations of a keyword phrase. I use it predominantly for...

New Strategy On How To Slash Your Pay-Per-Click Advertising Cost By Half Immediately Refinance Is Home Mortgage Refinancing Really Worth It?

Refinance > New Strategy On How To Slash Your Pay-Per-Click Advertising Cost By Half Immediately

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