Mortgage Refinancing Secrets Revealed

By Clement Idahosa

Refinancing means applying for a secured loan intended to replace an existing loan secured by the same assets. Refinancing may be done by any issuer of debt, such as corporations and governmental bodies, as well as holders of real estate, including home owners. Many owners of both commercial and residential real estate used certain analysis in their refinancing decisions known as the "2-2-2" rule.

What this means is that: if interest rates have fallen two points below the existing mortgage, if the owner has already paid two years of the mortgage, and if the owner plans to live in the house another two years, then refinancing is feasible.

Benefits of Refinancing

Refinancing a mortgage can lower the monthly payments owed on the loan. This is done by changing the loan to a lower interest rate, or by extending the period of loan, thereby spreading the re-payment out over a long period of time. The benefit of this is that the money saved can be applied to paying down the principal of the loan, and this will further reduce payments.

Refinancing an adjustable rate mortgage into a fixed rate one help to remove the risk of interest rates increasing exponentially. This will further help in stabilizing the interest rate over a long period of time and reduce the risk associated with an existing loan.

Refinancing a loan can help in paying off high interest debt such as credit card debt, with lower interest debt such as that of a fixed rate home mortgage. However, non-tax Deductible debt, like credit card or car loan debt can be transformed into tax deductible debt such as home mortgage, resulting in lowering one's taxes.

In addition, refinancing is also used to liquidate some or all the equity that has accumulated in real property during the tenure of ownership.

Facts You Should Know Before Refinancing

Credit score: if your credit score is low, you must improve on it first before considering refinancing otherwise your interest rate is going to be high. But those with a high credit score will not encounter any problem in terms of high interest rate.

Planning your budget before refinancing will enable you to know the cost of the mortgage, the benefits and savings. If the savings will help paying other debts such as credit card bills and unsecured loans, then refinancing can be a good decision.

You should know if your current mortgage is the best deal for you and for how many years do you intend to keep or stay in your home. If you intend to sell your house in less than three years time then refinancing may not be good for you. But if you intend to keep your home for a very long time then refinancing can help you pay off your home sooner with some savings added.

If you believe that refinancing is a good decision for you then shop for a good lender. Compare the total costs you need to pay off with your existing mortgage, also add or consider fees and charges you may incur when you take on a new mortgage. Finally, make sure that the interest rate is lowered, say about two to three percent lower than your current mortgage.

Clement Idahosa is a writer. For more information on Mortgage Refinancing visit: http://home-mortgagebuy.blogspot.com Article Source: http://EzineArticles.com/?expert=Clement_Idahosa

Mortgage Refinancing – How to Qualify for the Best Mortgage Rate

By Louie Latour

Qualifying for the lowest interest rate when mortgage refinancing will save you thousands of dollars, even lower your monthly payment amount. There are several steps you can take to improve your financial situation before applying. Here are several tips to help you qualify for the lowest mortgage rate and avoid costly mistakes when mortgage refinancing.

Mortgage Refinancing: ARMs Can Save You Money

If you fully understand the risk associated with variable interest rates the easiest way to qualify for a low rate is with an Adjustable Rate Mortgage. When interest rates are falling, homeowners with Adjustable Rate Mortgages are able to take advantage of lower payment amounts. The risk you take with this type of mortgage is that when interest rates are rising your monthly payment will go up as well.

Mortgage Refinancing: Check Your Credit First

You can also qualify for a lower mortgage rate by improving your credit. If your financial situation is better now than when you purchased you home, you may qualify for a better rate just by applying. If you have credit problems, investing some time rebuilding your credit could be worth thousands of dollars with a lower mortgage rate. The first thing you should do is request your credit reports from the three credit agencies.

Once you have your credit reports look for any mistakes or negative information. If you find mistakes you need to dispute the mistake with each credit reporting agency; if you have negative information you need to settle with the creditor to have that information removed. Having mistakes or negative information in your credit reports will damage your credit score and the mortgage rate you qualify.

Mortgage Refinancing: Term Length Affects Your Interest Rate

Term length is the amount of time you have to repay the mortgage loan. Traditional mortgage loans come with a term length of thirty years; however, there are also forty and fifty year terms available. The longer your term length the riskier the lender considers your loan, and the higher your interest rate. Short term mortgages usually come with lower rates because there is less risk for the lender.

No matter which type of mortgage rate you choose it is important to shop for the most competitive mortgage rate. When you compare mortgage offers make sure you take lender fees and closing costs into consideration before choosing a lender. You can learn more strategies for mortgage refinancing, including costly mistakes to avoid by registering for a free mortgage tutorial.

To get your free mortgage tutorial visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinancing Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing – Questions You Need to Ask Potential Mortgage Lenders

By Louie Latour

If you are in the process of mortgage refinancing, careful comparison shopping will help you avoid 90% of the mistakes homeowners make. Lenders have clever ways of disguising their markup and junk fees; if you learn to recognize these, you can save yourself thousands of dollars when mortgage refinancing. Here is a list of several questions you need answered when comparison shopping for the best mortgage loan.

I. What is the Guaranteed Interest Rate?

Your mortgage company guarantees an interest rate for you based on your credit and the details of your mortgage application. What your mortgage company isn’t telling you is that the interest rate guarantee you receive is not the interest rate the wholesale lender qualified you for. Mortgage companies routinely mark up mortgage rates to boost their revenues. This markup of your mortgage interest rate by the retail mortgage company is called Yield Spread Premium and you can avoid paying it. Ask to see the interest rate guarantee from the wholesale lender and compare it to the written guarantee from your mortgage company.

II. Will I be required to Pay Points on the Loan?

Many lenders may require you to pay a certain number of points in order to qualify for a loan. Ask the mortgage lender if your mortgage approval depends on paying points. Points are usually paid in exchange for more favorable loan terms or a lower interest rate. If the lender does not require you to pay points to qualify for the loan, you might try negotiating for a lower interest rate by paying a point or two if you plan on staying in your home.

III. What is the Loan Processing Fee?

One of the fees you will be required to pay when mortgage refinancing is the loan processing fee. If the figure the mortgage company quotes you is greater than $400 it is considered excessive. Ask the lender why they are charging you a higher amount.

IV. Is There a Pre-Payment Penalty

Mortgage lenders often include pre-payment penalties in their loan contracts to discourage refinancing. If you have good credit there is no reason to accept a mortgage that includes this penalty. Prepayment penalties can be expensive and could become a problem when you are ready to refinance again.

You can learn more about comparison shopping for the best mortgage while avoiding costly mistakes by registering for a free mortgage tutorial.

To get your free mortgage tutorial visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinancing Costs Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing: Protecting Yourself When Using an Adjustable Rate Mortgage

By Louie Latour

When used correctly, Adjustable Rate Mortgages have the potential to save you a lot of money. It is important to know what you are getting into before mortgage refinancing with an Adjustable Rate Mortgage. Here are several tips to help you protect yourself when choosing an Adjustable Rate Mortgage loan.

Adjustable Rate Mortgages (ARM) typically come with lower interest rates than fixed interest rate loans. These loans often come with an introductory period where the initial interest rate is significantly lower than the actual interest rate. At the end of the introductory period the lender will convert your loan to the actual interest rate and depending on the type of ARM you choose your payment amount will change.

Depending on your tolerance for risk, using an interest only or payment option Adjustable Rate Mortgage could help meet your short-term financial needs. Before choosing an Adjustable Rate loan when mortgage refinancing, find out which index your interest rate is based on. Depending on the adjustment interval of your loan, the lender will adjust your interest rate to this index plus markup. Some indexes are more volatile than others; it pays to shop around and choose the most favorable financial index.

You can minimize the risks of mortgage refinancing with an Adjustable Rate Mortgage with caps. There are two types of caps that protect borrowers with Adjustable Rate Mortgages and you need to ensure your loan has both of them. Rate caps protect your interest rate by limiting the amount the interest rate can change when the lender makes an adjustment. Periodic caps limit the amount your payment amount can change when the interest rate changes. Make sure your Adjustable Rate Mortgages has both periodic and rate caps. Adjustable Rate Mortgages that do not have properly structured caps can experience negative amortization; this results in a mortgage balance that grows over time.

You can learn more about your mortgage refinancing options including common mistakes to avoid by registering for a free mortgage tutorial.

To get your free mortgage tutorial visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinancing Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing – That Convertible Adjustable Rate Mortgage Could be a Clunker

By Louie Latour

If you are considering mortgage refinancing with a convertible Adjustable Rate Mortgage to limit your risk, the added convenience of converting your loan to a fixed interest rate could cost you a bundle. There are certainly no free lunches when it comes to mortgage refinancing and convertable options are no exception. Here are three tips to help you avoid overpaying for a convertible adjustable rate loan when mortgage refinancing.

Many mortgage companies push convertible Adjustable Rate Mortgages because they can qualify homeowners at a lower interest rate claiming when interest rates drop you can convert your mortgage to a fixed interest rate. When it comes to convertible Adjustable Rate Mortgages, the cost outshines the horsepower. You will pay a higher interest rate and very few borrowers every exercise their option to convert. Here’s why convertible Adjustable Rate Mortgages are a bad deal.

I. You get a higher mortgage rate.

Most homeowners think they can convert at the prevailing market rate. This simply isn’t true; when converting your Adjustable Rate Mortgage to a fixed interest rate, you’ll pay a rate premium of .25 to 1 percent or more.

II. You’ll pay a conversion fee.

In addition to not getting the market interest rate, you’ll have to pay your lender a conversion fee ranging from $100 to as much as 1% of your loan balance. Another hidden fee buried deep in your loan’s disclosure statement.

III. You’ll pay up front costs.

You will usually have to pay for the “conversion option” at the time you close on your Adjustable Rate Mortgage. If the lender doesn’t charge you an up-front fee, you’ll pay with a higher starting mortgage rate or higher loan origination fees.

Suppose you’ve got the convertible loan option. Can you convert the loan whenever you want to? Probably not, most often you can only convert your mortgage between the thirteenth and sixtieth month (up to the fifth year) of a 30 year loan. This is why most homeowners never convert their Adjustable Rate mortgages. If your mortgage company is offering a convertible option at no cost, consider what they are marking up before jumping on the offer. Otherwise avoid paying up-front costs as your convertible option will most likely be a clunker.

You can learn more about your mortgage refinancing options including costly mistakes to avoid by registering for a free mortgage tutorial.

To get your FREE six-part Mortgage Refinancing Video Tutorial, visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free "Mortgage Refinancing Tutorial," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage tutorial today at: http://www.refiadvisor.com Mortgage Refinancing Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing - Avoiding the High Cost of 30 Year Mortgage Loans

By Louie Latour

The traditional 30 year fixed interest rate mortgage is still the most popular mortgage option as it allows homeowners to qualify for larger amounts. When mortgage refinancing, a 30 year mortgage doesn’t always make sense and often results in overpaying. Here are several tips to help you choose the mortgage refinancing option that is right for your financial situation.

When comparing the interest paid on a 30 year loan compared to a 15 year mortgage, you pay an astonishingly higher amount with the longer term length. Choosing a 15 year loan when mortgage refinancing, will also reduce your interest rate anywhere from .375 to .6 percent. Here’s an example to illustrate the difference in finance charges.

Suppose you apply for mortgage refinancing with a $200,000 fixed rate loan. With a 15 year term you could qualify for 5.9% interest rate. The same loan at 30 years would get you a 6.5% mortgage rate. The extra 15 years on your mortgage results in paying a whopping $153,252 in additional finance charges than if you had chosen a 15 year mortgage loan!

15 Year Mortgage Loan:

Loan Amount: $200,000
Mortgage Rate: 5.9%
Monthly Payment: $1,676.92
Total Interest Paid: $101,846.91

30 Year Mortgage Loan:

Loan Amount: $200,000
Mortgage Rate: 6.5%
Monthly Payment: $1,264.13
Total Interest Paid: $255,088.92

Your monthly mortgage payment might be $412 less per month for a 30 year mortgage loan; however, is it really worth the additional $153,252? Mortgage refinancing with a 15 year term length is becoming increasingly popular with homeowners that do their homework and run the numbers.

You can learn more about your mortgage refinancing options, including costly mistakes to avoid by registering for a free mortgage tutorial.

To get your FREE six-part Mortgage Refinancing Video Tutorial, visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinancing Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing: When to Lock In Your New Mortgage Interest Rate

By Louie Latour

If you are in the process of mortgage refinancing, understanding interest rate locks can save you a lot of money. Locking in your mortgage interest rate protects you from the loan originator raising your interest rate; however, you should know the mortgage rate on the guarantee you receive is almost never the one you qualified. Here are several tips to help you lock in the mortgage interest rate you were qualified and avoid overpaying for your new mortgage loan.

Mortgage interest rates change on a daily basis. To get your hands on the ideal mortgage rate you should ask your loan representative for a rate lock. The interest rate lock you receive also needs to allow enough time for you to complete all of the necessary documentation and close on the mortgage. If you are unable to close before the rate lock expires, rest assured your loan originator will raise your mortgage interest rate.

Is the interest rate your loan representative gives you the one you were actually qualified? Probably not; mortgage companies and brokers routinely markup wholesale mortgage interest rates to receive a kickback from the lender. This markup is called Yield Spread Premium and could cost you thousands of dollars in unnecessary mortgage interest each year. You can avoid paying Yield Spread Premium by learning how to recognize the markup and negotiating with your loan representative to have this markup removed.

If your loan representative agrees not to include Yield Spread Premium with your mortgage interest rate, ask to see the rate lock from the wholesale lender. Comparing this rate lock with the interest rate guarantee you receive from your Mortgage Company or broker will confirm that your loan representative is not charging you Yield Spread Premium.

You can learn more about mortgage refinancing while avoiding costly mistakes with a free, six-part video tutorial.

To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinancing - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinancing tutorial today at: http://www.refiadvisor.com Mortgage Refinancing Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing: Understanding Mortgage Jargon Will Save You Money

By Louie Latour

If you are considering mortgage refinancing for any reason, doing your homework and learning the lingo will save you thousands of dollars. Much like used car salesman, mortgage companies and brokers inflate their interest rates based on how knowledgeable they perceive you to be. Understanding how retail mortgage markup works and using the lingo correctly will help you avoid overpaying for your new mortgage. Here are several tips to help outsmart your mortgage company or broker to avoid paying too much when mortgage refinancing.

Mortgage refinancing can be an overwhelming process for any homeowner. Not only are you bombarded with terminology, you have to worry about being taken advantage of by your mortgage company or broker. Mortgages are commodity products just like used cars. Just like purchasing a used car, when you take out a mortgage loan there is always someone trying to make a buck by overcharging you. The problem is instead of a buck, this person will make thousands of dollars at your expense, if you let them.

The most important term you need to learn before mortgage refinancing is Yield Spread Premium or YSP. When a mortgage retailer (all mortgage companies and broker are retail vendors for wholesale mortgage lenders except for banks) gives you a written guarantee for a mortgage interest rate, this written guarantee includes retail markup, or YSP. Here’s how Yield Spread Premium works.

When you apply for a mortgage loan with your retail mortgage company or broker, the wholesale lender will qualify you for a specific mortgage interest rate. The retail mortgage company will provide you a separate written guarantee with their company for a higher interest rate. The guarantee you receive is not a guarantee with the wholesale lender and the difference between your interest rate and the one you qualified is YSP or retail markup.

Why do mortgage companies inflate your interest rate? Just like used car salesman, the more they can overcharge you for the new mortgage, the higher their commission will be from the wholesale lender. Here’s an example how YSP works. Suppose the mortgage broker quoted you an interest rate of 6.5%. What you don’t know is that the wholesale mortgage lender qualified you for 6.0% and the broker marked up your interest rate .5%. For each .25% the broker overcharged you, that person receives 1 point as a bonus from the lender. One point is the equivalent of 1% of your loan amount. If you borrow $200,000 for mortgage refinancing, that broker receives your origination fees plus a $4,000 for ripping you off.

How can you avoid being ripped off when mortgage refinancing? Learn how to recognize Yield Spread Premium and you can avoid paying it. To learn advanced strategies for mortgage refinancing without paying YSP, register for a free mortgage guidebook that includes a comprehensive glossary of mortgage jargon.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinance Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing: Managing Your Mortgage During Times of Financial Hardship

By Louie Latour

Many homeowners fall on hard times with their finances at one time or another. Loss of a job, divorce, illness, or the death of a family member can quickly put your budget under water. Fortunately, you have a number of options to reduce or even defer your mortgage payments. Here are several suggestions that could help manage an unwieldy mortgage payment until you are back on your feet.

I. Contact Your Mortgage Lender

Believe it or not, contacting the mortgage lender before you are behind and explaining the situation could be the answer to your financial problems. Mortgage lenders will generally work with you as long as you contact them before you’re in serious trouble. The mortgage lender may work out reduced or even deferred payments for several months simply by asking. It is usually in the best interest of the mortgage lender to keep your home out of foreclosure. Remember, you will find the lender much more accommodating if you ask before you’ve dug yourself into a deep hole.

II. Mortgage Refinancing Could Lower Your Payments

If the mortgage lender is unwilling to help you with reduced or deferred payments, consider mortgage refinancing. There are a number of loans that can significantly reduce your payment amount for a number of years. Interest only and hybrid loans are two options to consider depending on your tolerance for financial risk. Interest only mortgages allow the lowest payment amount because you are not paying any of the loan principle during the interest only period; this interest only period often lasts as long as five years.

If you have less tolerance for risk, consider a hybrid mortgage. Hybrid loans are a blend of fixed and adjustable rates that will give you a low payment like an interest only mortgage, without the same level of risk. Extending the term length of the loan type you choose will further reduce your payment amount. Traditional mortgages come with thirty year term lengths; however, there are now forty and even fifty year mortgage loans. By choosing an interest only or hybrid mortgage with the longest term length, your payment will be significantly reduced. This new, significantly lower payment amount will allow you to take back control of your budget.

III. Shop Around for the Best Mortgage Loan

Once you have decided mortgage refinancing is right for you it is important to shop around for the best lender. Homeowners often make the mistake of assuming the mortgage with the lowest interest rate is best; these homeowners neglect to factor in lender fees and closing costs, often overpaying thousands of dollars for the new loan. You can learn more about mortgage refinancing while avoiding costly mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinance Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing – Trade Points for a Lower Mortgage Interest Rate

By Louie Latour

Nearly every mortgage lender will trade points for better terms or a lower interest rate. Whether or not paying points is in your best interest is another story. Here are several tips to help you decide if paying points when mortgage refinancing is worthwhile for you.

The decision to pay points when mortgage refinancing primarily depends on how long you will be keeping your home. If you stay in your home for at least five years you could benefit from paying points for a lower mortgage rate. Here is an example to illustrate how points save you money.

Suppose you’re considering mortgage refinancing for $100,000 and the lender quotes you an interest rate of 8.0% with zero points because you’ve had credit problems in the past. By paying three points at closing (one point=1% of the loan amount), you could qualify for a 6.75% mortgage rate. Your monthly payment at 8.0% would be $733 per month, and at 6.75% you would pay $648 per month. This results in a savings of $85 per month; it will take you 35 months to recoup the $3,000 you would be required to pay at closing.

The previous example illustrates how paying points at closing can be beneficial for homeowners with poor credit. Whether or not paying points is right for you depends on your financial situation. Don’t rely on your loan representative to recommend if paying points makes sense as a greedy loan representative will direct you to the loan option that yields the largest commission. Never ask your mortgage representative, “Which loan is best?” Instead, ask to see the rate sheet that shows your options with and without points so the two of you can work through the numbers.

You can learn more about your mortgage refinancing options, including costly mistakes to avoid by registering for a free mortgagee tutorial.

To get your FREE six-part Mortgage Refinancing Video Tutorial, visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinancing Points Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing – 3 Tips to Help Your Save When Refinancing Your Home Loan

By Louie Latour

If you are in the process of mortgage refinancing, there are steps you can take to avoid overpaying for your next mortgage. By focusing on several key areas of your finances you will not only qualify for a better mortgage rate, but will pay less in lender fees and closing costs. Here are three tips to help you avoid overpaying for your next mortgage loan.

Mortgage interest rates are still very low and many homeowners, especially those with risky Adjustable Rate Mortgage loans are choosing to refinance their home loans. If you’re thinking about taking the plunge and getting a new mortgage, comparison shopping will help you find the best mortgage offer.

Mortgage Refinancing: Check Your Credit First

Having mistakes or negative information in your credit reports will devastate you credit score and the mortgage rate you qualify for. Before you apply for mortgage refinancing it is important to request copies of your credit reports from each of the three credit reporting agencies and carefully review your records for mistakes.

Mortgage Refinancing: Save Your Money

When you refinance your mortgage loan you’ll be required to pay closing costs. The origination fees and closing costs you pay can be as much as 3% of your loan amount so it is important to have this cash on hand to avoid mortgage refinancing delays. The more cash you have on hand when applying for mortgage refinancing, the better your application appears to the lender.

Mortgage Refinancing: Shop Smartly

Careful comparison shopping will help you avoid the majority of mistakes homeowners make when mortgage refinancing. Make sure you comparison shop from a variety of mortgage lenders and compare loans by requesting the Good Faith Estimate from each lender before you submit your application. The Good Faith Estimate allows you to do a line-by-line comparison of all the fees and interest rates associated with each mortgage offer. Don’t get hung up just on the lowest mortgage rate; you’ll need to consider lender fees and closing costs to make an informed decision.

You can learn more strategies for mortgage refinancing while avoiding costly mistakes by registering for a free mortgage tutorial.

To get your free mortgage tutorial visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Refinance Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing With a Broker: Costly Mistakes to Avoid When Refinancing With a Mortgage Broker

By Louie Latour

If you are considering mortgage refinancing with a mortgage broker, there are a number of things you need to know before signing an agreement. Mortgage brokers can be an excellent resource for finding competitive mortgage refinancing offers; however, you need to be careful to avoid overpaying for the mortgage broker’s services. Here are several tips to help you avoid costly mortgage refinancing mistakes when working with a mortgage broker.

Mortgage Refinancing: What Are Mortgage Brokers?

Mortgage brokers are a third party retail outlet for securing mortgage refinancing loans. When mortgage refinancing it is important to understand the how the retail mortgage market works. With the exception of banks and broker-banks (which you should avoid altogether) the retail mortgage market is made up of mortgage companies, online web portals, and mortgage brokers. These retail outlets all work basically the same; mortgage brokers sell mortgages for wholesale mortgage lenders for a commission.

Mortgage Refinancing: How Do Mortgage Brokers Operate?

When you apply for a mortgage loan from a mortgage broker the wholesale lender qualifies you for a certain interest rate and provides the mortgage broker with a written guarantee of that interest rate. The mortgage broker will turn around and reissue the mortgage refinancing interest rate guarantee in their company’s name. Do you think the guarantee you receive is the same as the one that came from the wholesale lender? If you said “No!” give yourself a gold star. Mortgage brokers always mark up the interest rate the wholesale lender qualified you for. The wholesale mortgage refinancing lender may have qualified you for a 6.0% loan; however, the mortgage broker marked it up to 6.75% on your interest rate guarantee.

Mortgage Refinancing: What is Mortgage Broker Yield Spread Premium?

The markup your mortgage broker slips into your interest rate when mortgage refinancing is called Yield Spread Premium. Mortgage brokers are compensated with the origination points or fees you pay for mortgage refinancing. Yield Spread Premium is the icing on the cake for many retail mortgage outlets like mortgage brokers. By overcharging you for the interest rate, the mortgage broker receives an additional point for each .25% they mark up on the loan as a bonus from the wholesale lender. In the case above where the wholesale lender qualified you for a 6% loan and your mortgage broker marked up the interest rate to 6.75%, that broker will receive three additional points as a bonus for ripping you off.

Suppose your mortgage refinancing loan was for $200,000, the mortgage broker would receive a $6,000 bonus for overcharging you. The overwhelming majority of homeowners never know they’ve been ripped off in this manner by the mortgage broker. How can you avoid paying this mortgage broker markup when mortgage refinancing? Homeowners that learn to recognize Yield Spread Premium can avoid paying the markup. To learn how you can avoid paying mortgage broker markup when refinancing your mortgage, register for a free mortgage refinancing guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing Broker - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinance Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing: Is Refinancing Right for You?

By Louie Latour

If you are a homeowner considering refinancing your mortgage, how do you know if refinancing is the right financial decision for you? You certainly do not want to lose money when it comes to your mortgage; there are expenses involved and it will take time to recoup these expenses from any potential savings you could have, it is important to weigh the advantages and disadvantages prior to refinancing your mortgage. Here is what you need to know before you refinance your mortgage.

Is Refinancing Your Mortgage the Right Choice?

If you are refinancing your mortgage to pay less interest or lower your monthly payment you will not benefit from any potential savings right away. The reason for this is that it will take you time to recoup your expenses from lender fees and closing costs on the new mortgage. You need to consider how long you plan on living in your present home; if you will moving in less than five years you probably will not have time recoup these expenses. The longer you plan on living in your current home the more savings you will realize from refinancing your current mortgage.

Does Your Current Mortgage Have a Prepayment Penalty?

Many mortgage lenders include prepayment penalties in their loan contracts. If your current mortgage has a prepayment penalty you will have to pay the penalty when you refinance the mortgage. This penalty will cut into any potential savings you are hoping to achieve. Prepayment penalties can be quite expensive; many lenders charge up to six months worth of interest on 85% of your original loan balance.

Refinancing Costs

There are many expenses involved in refinancing your mortgage. Application fees, lender fees, title insurance, legal expenses, and closing costs all need to be factored into your decision to refinance you current mortgage. In addition to these fees the mortgage lender may require you to pay discount points in order to qualify for the lower interest rate. As a rule of thumb, if the new interest rate is not 1.5% lower than what you are currently paying, refinancing might not make good financial sense unless there are other reasons like cashing out equity. To learn more about refinancing your mortgage while avoiding common homeowner mistakes, register for a free mortgage guidebook using the links below.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free guidebook today at: http://www.refiadvisor.com Apex Mortgage Refinance Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing - Is Refinancing Right for You?

By Louie Latour

The decision to refinance your mortgage is an important financial decision that should not be taken lightly. Just because you can refinance your mortgage, does not make refinancing a smart financial decision. Here is what you need to know to avoid making hasty financial decisions without considering all of your options. The average homeowner in the United States refinances their mortgage every four years. There are a variety of reasons for refinancing, some good and some bad. Here are common reasons for refinancing your mortgage that make good financial sense.

Convert to a Fixed Interest Rate

One of the more common reason for mortgage refinancing these days is trading your adjustable interest rate mortgage in for a traditional, fixed interest rate mortgage. Many homeowners used these riskier adjustable rate mortgage loans to purchase homes when interest rates were lower; some purchased more home than their budgets could afford. The riskier varieties of adjustable rate mortgage include interest only and option mortgages; if you have one of these mortgages and do not have the stomach or budget for rising interest rates you may want to convert to a fixed interest rate mortgage now before your monthly payment gets out of hand.

Lower Your Interest Rate

If your financial situation has improved since you originally financed your home you could qualify for a lower interest rate or better terms on your new mortgage. Improvements to your financial situation include higher monthly income, reduced debt, or a higher credit rating. If you financed your home with a subprime, or bad credit mortgage lender, you will want to refinance this mortgage in two or three years when your financial picture improves.

Convert to a Higher Term Length

If your monthly income has increased enough to afford a higher mortgage payment, you might consider refinancing to a 15 or even 10 year mortgage. The reason for doing so is that while your monthly payment amount will be higher, you will pay less interest to the mortgage lender and build equity in your home at a much faster rate.

Cash Out Equity

There are a number of reasons for borrowing against equity in your home, some good, some bad. Cash out refinancing will not necessarily save you money; however, it could allow you to pay for repairs, renovations or other financial emergencies. A good use of equity in your home is to consolidate other high interest debt such as credit cards to help get your cash flow under control.

Regardless of your reasons for refinancing you want to be careful not to overpay for your new mortgage. There are a number of expenses involved with refinancing and if you do not do your homework and carefully research mortgage lenders it is easy to overpay for your new mortgage. To learn how to avoid common mortgage mistakes including overpaying for your new mortgage, register for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free guidebook today at: http://www.refiadvisor.com Chicago Mortgage Refinance Article Source: http://EzineArticles.com/?expert=Louie_Latour

Albuquerque Mortgage Refinancing – Refinancing to Improve Your Finances

By Louie Latour

If you are considering a new Albuquerque Mortgage loan, there are a number of reasons to refinance regardless of interest rates. Most homeowners refinance their Albuquerque mortgage to qualify for a better interest rate and lower their monthly payment. Other homeowners use their mortgage loans as a vehicle to improve their financial situations. Here are several tips to help you use mortgage refinancing to achieve your financial goals.

The equity you own in your home can be an excellent resource for securing credit. Home equity loans are excellent tools for freeing up cash to consolidate your debts. Mortgage refinancing with cash back is an affordable alternative to other types of home equity lines as you will qualify for a lower interest rate.

Reasons for Mortgage Refinancing

Refinancing is not right for everyone; generally speaking you need to plan on remaining in your home for some time to benefit from mortgage refinancing. By reducing your monthly payment amount you can free up cash in your budget for other reasons. Qualifying for a lower interest rate is not the only way to lower your payment amount. There are many other options including longer term lengths, interest only, and option loans to help you meet your financial goals. In addition to these options for a lower payment you can take cash back at closing to consolidate your debts.

Mortgage Refinancing to Improve Your Financial Situation

If you refinance your Albuquerque mortgage loan to consolidate debts, it is important to understand consolidation does not eliminate debt. Consolidating your credit cards and unsecured debts with your mortgage loan simply moves the debt around to make it easier to manage. If you continue the spending patterns that created your debts you will find yourself sinking further in debt and squandering your home equity.

You can learn more about refinancing your Albuquerque mortgage and avoiding costly mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Albuquerque Mortgage Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing – Understanding Your Credit Before Refinancing

By Louie Latour

If you are a homeowner with poor credit, you might thing mortgage refinancing is out of reach. Having poor credit will not prevent you from refinancing your mortgage; however, it could result in your paying more to the lender. There are steps you can take to improve your credit and qualify for competitive interest rates when mortgage refinancing, and here are several tips to help get you started.

Credit problems can happen to anyone. Miss a payment on your credit card and your credit score will take a nosedive. It is very easy to be labeled a credit risk when falling on financial hard times. Having a poor credit rating isn’t a life sentence; you can rebuild your credit history by using your home. Mortgage refinancing is a practical solution to your credit problems that can help you reach your financial goals.

Mortgage refinancing can help improve your financial situation by lowering your monthly payment. Having a lower payment could make your budget easier to manage and give you back control of your finances. You will also have the opportunity to establish a favorable payment history with a new lender. A large percentage of your credit score is based on your history of on-time repayment. Bad credit mortgage refinancing is simply the process of taking out a new mortgage with a lender that specializes in bad credit mortgages to pay off your existing loan.

Bad Credit Mortgage Refinancing – Know Your Credit Score

Your credit records are maintained by three separate credit agencies and are prone to mistakes. Before refinancing it is important to request records from all three agencies and carefully review your credit reports for errors. If you find mistakes in your credit files you need to dispute them with each agency and allow time for the correction to be reflected in your credit score.

Depending on the extent of your credit problems you may need to seek financing from a bad credit lender known as a “Sub-Prime” mortgage lender. Bad credit lenders charge higher interest rates and fees than traditional mortgage lenders; however, if you do your homework and carefully research mortgage lenders you can find competitive interest rates, even with poor credit.

You can learn how to comparison shop for the best mortgage while avoiding costly homeowner mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Albuquerque Mortgage Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing – A Warning About Refinancing With a Bank

By Louie Latour

If you are considering mortgage refinancing with your bank, you should read the following discussion first. Banks fall into a special category of mortgage lenders and routinely charge Service Release Premium (SRP) for their loans. What is SRP and why should you avoid banks altogether for your next mortgage loan? The answer will surprise you.

Banks and Broker-Banks are a unique type of mortgage originator as they fund their mortgage loans with their own money; Broker-Banks are simply banks pretending to be mortgage brokers. Everyone else in the marketplace (mortgage companies & brokers) is a retail vendor that sells mortgage products for wholesale lenders. Because banks fund their loans with the bank’s money, many people mistakenly think taking out a mortgage from the bank or credit union is going to be cheaper than taking out a retail mortgage loan.

The ugly truth about banks comes from the fact that they are exempt from the Real Estate Settlement Procedures Act (RESPA); legislation that protects homeowners from abusive lending practices by requiring mortgage lenders to disclose all fees and markup associated with their loans. When RESPA was being the drafted the banking lobby campaigned feverishly to be excluded from any disclosure legislation. Millions of dollars changed hands and when RESPA became law, your bank was exempt. This means the bank can literally charge you whatever they like and no one is the wiser.

So what is Service Release Premium?

Bank mortgage loans are often called “correspondent loans” because after the banker completes your mortgage that bank will immediately turn around and sell it on the secondary market. Banks earn a premium on the secondary market by charging Service Release Premium, and here’s how it works. Suppose prevailing mortgage interest rates are 6.00%. You have good credit and meet every requirement to qualify for a 6.00% interest rate on the wholesale market. Your banker knows this, but charges you 6.50%. The markup from 6.0% - 6.5% is Service Release Premium. Banks do this because they will receive an additional two points, or 2% of the loan balance, when the mortgage is sold on the secondary market. Because banks are exempt to all RESPA laws protecting you from this fleecing, you will never know it happened.

Every bank does this and because of the loophole in RESPA legislation and no bank will ever disclose how much they have inflated your mortgage interest rate. Another problem with banks is that your banker will be much less likely to negotiate for terms and interest rates because of the loophole. Banks exploit the loopholes in RESPA to make their loans seem more affordable with the fees and closing costs; however, they hit you with undisclosed SRP markup on your interest rate. Your bank will always quote you the highest interest rate they think you will go for.

The bottom line is that your bank will not be less expensive than other options; your bank will always overcharge you for the mortgage loan. You can learn more about finding the best mortgage loan without overpaying by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Albuquerque Mortgage Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing for People with Bad Credit - Ways to Reduce Refinancing Costs

By Carrie Reeder

Because of declining home mortgage rates, many people are eager to refinance their existing home loan and take advantage of a lower payment or a fixed rate. In fact, homeowners with bad credit may also benefit and obtain comparable low rates. Although refinancing is very common, homeowners must be prepared to pay closing costs and other fees. Fortunately, there are ways the financially strapped can save money on a refinancing.

Understanding Refinancing Costs and Fees

Applying for a refinancing is similar to obtaining your initial mortgage. A refinancing creates a new mortgage. Thus, homebuyers are obligated to pay certain costs and fees at closing. Typical fees include broker fees, appraisal, title search, inspections, etc.

For the most part, these fees are paid at closing. If purchasing a new home, the buyer may negotiate and have the seller pay the closing fees. However, if you are the original owner, you may have to employ effective techniques to reduce your closing costs.

Tips to Reduce Refinancing Closing Cost

When refinancing your home, it may be wise to apply for a new home loan with your existing lender. In some instances, the lender may be willing to waive some fees. If a good credit history has been established, the lender will want to keep you as a customer. Hence, you have negotiation power.

Because of low mortgage rates, homeowners may also take advantage of “no or low closing cost” refinancing. With this option, the lender agrees to waive the application fee. Moreover, these lenders will pay the appraisal and title fee for the homeowner.

The downside is that these loans entail a slightly higher interest rate. Nonetheless, “no or low closing cost” loans are beneficial. Because these loans consist of a higher interest rate, this option is more practical for homeowners who plan on moving within three years.

Another common approach for homeowners refinancing involves including all closing fees into the home loan. This will increase the final loan amount. While this approach will not necessarily reduce closing costs, homeowners are not obligated to pay for their closing fees out-of-pocket. This method is perfect for homeowners with little available cash.

View our recommended Bad Credit Mortgage Refinance lenders or view all of our Recommended Refinance Lenders. Article Source: http://EzineArticles.com/?expert=Carrie_Reeder

Mortgage Refinancing – How to Calculate Your Break Even Point of Savings When Refinancing

By Louie Latour

The decision to refinance your mortgage is often motivated by saving money. In order to determine if mortgage refinancing is right for you, calculate where you begin to realize the savings from your new mortgage. Here is how to calculate the break even point where your savings start when mortgage refinancing.

The big question everyone asks when mortgage refinancing comes down to “How long before I start saving money?” Calculating your break even point is a fairly simple calculation. To get started determine the amount you will be saving with a lower monthly payment. Add up the costs associated with refinancing your mortgage and divide by the amount you save each month. This will tell you the number of months it will take to reach your break even point.

Here is a simple example. Suppose your refinance your mortgage and lower your monthly payment from $1,200 to $1,000. Your origination fees, closing costs, and points add up to $4,500. Divide $4,500 by $200 and you’ll find that your break even point is after 23 months. There are other factors that influence your break even point including taxes and whether or not you pay your closing costs or finance them with your loan. If you elect to finance your closing costs with your loan principle, you may never reach the break even point as the average homeowner refinances their mortgage every seven years.

You can learn more about mortgage refinancing, including strategies to save money by avoiding costly mistakes by registering for a free mortgage tutorial.

To get your FREE six-part Mortgage Refinancing Video Tutorial, visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinancing Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing - How to Rebuild Your Credit by Refinancing Your Mortgage

By Louie Latour

If you are a homeowner with a poor credit rating, mortgage refinancing is an excellent way to rebuild your credit. Depending on the severity of your credit problems you may need to refinance the loan with a lender that specializes in bad credit mortgages; however, after as little as 24 months of on time payments you can qualify for competitive rates from a traditional mortgage lender. Here are several tips to help you rebuild your credit rating by refinancing your mortgage loan.

Bad Credit Mortgage Lenders

Bad credit mortgage lenders specialize in loans for homeowners with poor credit ratings. These mortgage lenders are often called “Sub Prime” mortgage lenders. When applying for a bad credit mortgage it is important to shop from a variety of lenders to ensure you will not pay excessive interest rates and fees. When you comparison shop from a variety of lenders it is easy to spot the ones trying to take advantage of you.

The Internet makes it very simple to compare loan offers from a variety of bad credit lenders. You can quickly compare offers from dozens of lenders and even apply for the loan online. When you compare loan offers it is important to compare all fees, points, and closing costs. Choosing the loan with the lowest interest rate does not mean you’ve picked the best mortgage.

Rebuilding Your Credit with Mortgage Refinancing

When you refinance your mortgage with poor credit you can expect to pay more than a homeowner with good credit. Once you have secured the new loan you will need to focus on building a favorable repayment history with the new loan. When you make regular, on time mortgage payments your credit score will improve. During the 24 months after you refinance your mortgage it is important to maintain low balances on your credit cards and use credit responsibly. If you have Internet banking it would be a good idea to schedule automatic payments to ensure all of your mortgage payments are paid on time.

After a period of 24 months of on time payments and responsible use of credit, you will qualify to refinance the mortgage with a traditional mortgage lender. Because you will be refinancing this loan again it is important that the bad credit lender does not include a prepayment penalty with the mortgage. If there is a penalty for early repayment, the penalty must expire before you are ready to refinance the mortgage. If you accept a mortgage with a prepayment penalty it could become very expensive to refinance with a traditional mortgage lender.

You can learn more about rebuilding your credit with mortgage refinancing by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinance Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing – Never Fib to Your Lender When Refinancing

By Louie Latour

Many homeowners stretch the truth to qualify for a better mortgage rate when refinancing. Everyone fibs a little, right? How’s the mortgage lender going to find out? Here are several tips about income verification to help you avoid pitfalls and qualify for a better rate when mortgage refinancing.

Mortgage lenders verify income and assets prior to approving your mortgage application. They may also require proof of your separation agreement or divorce, where your money comes from, your bank and investment account balances, and nearly any other fact you are claming material to your refinancing application.

Lenders Verify Income When Mortgage Refinancing

Your lender may call or write to your employer, request your pay stubs, ask for your tax returns, and even request permission to contact the IRS directly regarding your income. If your mortgage company asks you to complete an IRS form 1406 giving them permission to contact the IRS on your behalf, make sure you specify the years you want the lender to see. If you forget to mark this on the form you might have some nosy underwriter rooting through your complete history of tax returns. Your lender will verify the income you complain with your documentation for accuracy. If the lender finds discrepancies it could delay approval or raise your interest rate. This is why you never want to intentionally or otherwise submit erroneous information with your mortgage refinancing application.

Lenders Also Verify Debts When Mortgage Refinancing

To verify your debts the mortgage lender will obtain credit reports from all three credit reporting agencies. The mortgage lender may also ask for your most recent bank account statements and run a check of public record for outstanding liens or judgments against you. Make sure the figures on your application for mortgage refinancing are an accurate representation of your overall debts. Again, downplaying your debts could lead to qualifying for a higher mortgage rate or even having your mortgage refinancing application denied.

The majority of mortgage lenders carefully scrutinize an application for numerical discrepancies, missing information, gaps in dates, and anything else that seems fishy. Don’t play games with your mortgage lender, report all your debts and income honestly and you stand a much better chance of qualifying for a better mortgage rate that saves you thousands of dollars.

You can learn more strategies for mortgage refinancing while avoiding costly homeowner mistakes by registering for a free mortgage tutorial.

To get your FREE six-part Mortgage Refinancing Video Tutorial, visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Tutorial Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing 101: How to Get Started Refinancing Your Home Loan

By Louie Latour

Many homeowners had a negative experience purchasing their homes and avoid the thought of mortgage refinancing all together. Mortgage refinancing has the potential to save you a lot of money, if done correctly. Here are several tips to help you decide if mortgage refinancing is right for you and get on the right path to saving money with the new loan.

Mortgage Refinancing 101: Is Refinancing Right for You?

There are a number of reasons for mortgage refinancing, regardless of the interest rate you qualify for. Even if you cannot qualify for a lower interest rate, mortgage refinancing still makes sense if you need a lower payment amount or want to borrow against your home equity. Mortgage interest rates have been rising in recent years; however, they are still at historically low levels. If your financial situation has changed since purchasing your home, you may have a better paying job, have married, divorced, or saved some money; because your financial picture is different now you may qualify for a better mortgage interest rate.

Even if you cannot qualify for a lower interest rate you can still lower your payment amount by extending the term length of your loan. Term length is the amount of time you have to repay the loan; the term length you choose and the interest rate you receive determines your monthly payment amount. You may also consider refinancing to consolidate you debts and rebuild your credit. Debt consolidation with your mortgage has the added advantage of deducting the interest you pay from your Federal Income tax.

Mortgage Refinancing 101: Avoid Overpaying for Your New Mortgage

Once you’ve decided mortgage refinancing is right for you it is important to do your homework and research mortgage offers. By doing your homework you will be able to avoid costly mistakes with your mortgage loan. The Internet is an excellent tool for mortgage refinancing; you can quickly locate and compare offers from dozens of lenders with a simple online search. When you compare mortgage refinancing offers it is important to compare all fees, terms, and the interest rate. Many homeowners think choosing the loan with the lowest interest rate means they are getting the best deal. These homeowners often overpay for the rest of their loans by neglecting to consider lender fees, retail markup, and closing costs.

You can learn more about mortgage refinancing, including costly mistakes to avoid by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinance Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing – What You Need to Know Before Refinancing With a Broker

By Louie Latour

If you are in the process of refinancing your home loan you might consider using a mortgage refinancing broker to help you find the best loan offer. Mortgage brokers are an excellent resource for locating competitive mortgage refinancing offers as long as you understand how retail mortgage loans work. Brokers often significantly mark up the interest rates on loan offers; if you are able to recognize this markup you can easily avoid paying it. Here are several tips to save you money when mortgage refinancing with a broker.

The Mortgage Refinancing Market

The retail mortgage market is made up of mortgage companies and brokers that refer borrowers to wholesale lenders for a commission. There are also banks and broker- banks that write their own mortgages; however, due to loopholes in mortgage refinancing disclosure laws that protect homeowners in the United States, you should never refinance your mortgage with a bank or broker-bank. For the purpose of this discussion we will focus on mortgage refinancing with mortgage brokers which act as third party vendors for wholesale mortgage lenders.

Mortgage Refinancing With a Broker

Mortgage brokers that do not close on home loans in their own names are excellent time-saving resources for mortgage refinancing. This is especially true for special needs borrowers, like homeowners with poor credit. The first question you should ask every broker you consider is “Do you close on the loan in your own name?” If the answer to this question is “Yes” or the mortgage refinancing broker refuses to answer, you know that you are dealing with a broker-bank and should scratch this person off your list. Never refinance your mortgage with a bank or a bank pretending to be a mortgage broker.

What to Tell Your Broker When Mortgage Refinancing

When you have found a broker that you are certain is not a bank masquerading as a mortgage broker, tell the broker you will pay mortgage refinancing origination fees and closing costs, but will not pay Yield Spread Premium (YSP) of any kind. YSP is the markup mortgage brokers tack onto the interest rate your wholesale mortgage refinancing lender qualified you for. Mortgage brokers do this to receive an additional bonus for overcharging you.

Additional Resources for Mortgage Refinancing Information

You can learn more about mortgage refinancing with a broker, including common mistakes to avoid by registering for a free mortgage refinancing guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinance Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Albuquerque Mortgage Refinancing - What Need to Know Before Refinancing

By Louie Latour

If you are in the process of refinancing your Albuquerque mortgage, there are steps you should take prior to refinancing that will ensure you qualify for the best loan possible. Doing your homework and researching Albuquerque mortgage lenders will even help you avoid costly mortgage mistakes. Here are several tips to help you prepare for refinancing your Albuquerque mortgage loan.

Albuquerque Mortgage Refinancing - Clean Up Your Credit First

The first thing you should do prior to refinancing your Albuquerque mortgage is request copies of your credit reports from each of the three credit agencies. Credit records are maintained by three separate companies and are prone to mistakes. Having inaccurate information in your credit reports will significantly damage your credit score and the interest rate you will qualify for with your Albuquerque mortgage. Once you have credit reports from Equifax, Experian, and Trans Union, carefully review these records for any errors. If you find errors you will need to dispute these mistakes and allow enough time for the correction to raise your credit score.

Albuquerque Mortgage Refinancing - Save Money

Before refinancing your Albuquerque mortgage it is important to avoid using credit for large purchases. Making large purchases using credit will reduce your credit score and negatively impact the interest rate you receive. It will help your application to start putting money in a savings account. The Albuquerque mortgage lender will evaluate your credit and assets including bank accounts and investments. The more money you can squirrel away in a savings account, the better off you will be refinancing your Albuquerque mortgage loan.

Albuquerque Mortgage Refinancing - Fix Up Your Home

If you don’t have a recent appraisal, the new Albuquerque mortgage lender could require a new appraisal or survey prior to approving your loan. Appraisals are important if you plan on borrowing against the equity in your home; the more equity you have, the better your interest rate will be. When making repairs to your home, don’t go overboard and replace all of your appliances as this will not necessarily improve the appraised value of your home. Simple things like a fresh coat of paint, improving your landscaping, and minor repairs give you the most bang for your buck when improving the appraised value of your home.

You can learn more about qualifying for the best Albuquerque mortgage while avoiding costly mortgage mistakes, register for a free mortgage guide.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Albuquerque Mortgage Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing - Avoiding Problems and Delays When Refinancing

By Louie Latour

If you are in the process of mortgage refinancing, any number of problems can delay closing on the new mortgage loan. There are steps you can take to ensure closing on time; unforeseen delays could result in your interest rate guarantee expiring and paying more fore the new mortgage. Here are several tips to make sure mortgage refinancing goes smoothly and that you do not overpay due to unforeseen delays.

Mortgage refinancing has become an extremely popular avenue for borrowing against your equity and reducing your monthly payment amount, despite rising interest rates. Even if you cannot qualify for a lower interest rate than you already have, you can still lower your monthly payment amount. Because you are required to pay fees when mortgage refinancing, it is important to shop around from a variety of mortgage lender and minimize your expenses.

If you’ve decided mortgage refinancing is right the right choice for you, start by collecting the necessary documentation for your new mortgage lender. You will be required to provide proof of income and assets in the form of pay stubs, bank statements, and tax returns going back at least two years. You will need a recent statement from your existing mortgage lender, the payoff balance of your mortgage, your homeowner’s policy, and the most recent appraisal and survey of your home. Collecting all of these documents before applying for a new loan will eliminate 90% of the delays homeowners encounter during mortgage refinancing. You will want to stay in close communication with your loan representative in case additional information or documentation is required by the lender.

Mortgage Refinancing: Be Prepared to Pay Closing Costs and Points

Mortgage refinancing is just like applying for any other mortgage loan; you will be required to pay origination fees, possibly discount points, and closing costs to secure the loan. If you are unable to pay closing costs many lenders allow you the option of financing this expense with your mortgage; doing this will significantly increase your total finance costs and is usually not worth doing. You may also have the option of buying down your mortgage interest rate by paying discount points to the lender. Discount points are a fee you pay in exchange for more favorable terms or a lower interest rate. Before agreeing to pay points you should determine if the benefit you receive justifies the cost, and how long it will take you to recoup this expense from your potential savings. Having this information will allow you to make an informed decision if paying points is right for you.

Mortgage Refinancing: Watch out for Private Mortgage Insurance

If you plan on taking cash back from your equity when mortgage refinancing, be careful that you do not borrow more than 80% of your home’s value. If you go over this 80% percent threshold, the lender may require you to purchase Private Mortgage Insurance and could delay your closing. This insurance does nothing to protect you and can increase your payment amount by hundreds of dollars. Private Mortgage Insurance only protects your lender from losses if you default on the loan; it would be in your best interest to avoid paying this expense.

You can learn more about your mortgage refinancing options, including costly mistakes to avoid by registering for a refinancing guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: www.refiadvisor.com Mortgage Refinance Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing: Save Money When Refinancing With Bad Credit

By Louie Latour

Mortgage refinancing with poor credit has become an easy task to complete; however, if you’re not careful it’s even easier to overpay for your new mortgage loan. Bad credit mortgage lenders are plentiful in today’s market which is why proper comparison shopping is essential for homeowners with poor credit ratings. Here are several tips to help you find the best lender when mortgage refinancing with poor credit.

I. Bad Credit Mortgage Refinancing: Damage Control

The first thing you should do before you even think about a new mortgage is assess your credit. Credit records are maintained by three separate companies in the United States and you will undoubtedly have dozens of hands in your credit records throughout the course of a year. As a result, mistakes are common and your credit score suffers. Before you start shopping for a new mortgage request copies of your credit reports form each of the there credit agencies and carefully scrutinize them for errors. If you find mistakes in your credit files you will need to dispute the errors with each agency and the creditor responsible for placing it there. One the error is gone you will want to allow enough time for the correction to be reflected in your FICO score.

II. Bad Credit Mortgage Refinancing: Comparison Shop for the Best Loan

Depending on the severity of your credit problems you may have to seek mortgage refinancing from a type of specialty mortgage lender known as a “Sub-Prime” lender. Sub-Prime mortgage refinancing caters to homeowners that traditional mortgage lenders will not approve. You can expect to pay more because the lender is shouldering a greater risk when giving you a mortgage; however, if you do your homework and research lenders you can find interest rates comparable to what homeowners with good credit are paying. Enlisting the help of a Mortgage broker, provided you watch the broker like a hawk and do not pay retail markup, could help find you such a deal.

III. Bad Credit Mortgage Refinancing: Avoid Overpaying for the Loan

Before you start mortgage refinancing it is important to understand how the retail marketplace works. Mortgage companies and brokers are scoundrels, much like used car salesman, and receive the majority of their profit from overcharging you. Retail mortgage loans are commodity products just like cars. If you adopt a car buyer's mentality when refinancing your mortgage you will save yourself a lot of money. Retail mortgage companies and brokers represent wholesale mortgage lenders. When you qualify for a specific interest rate for your new mortgage, the wholesale sub-prime lender in this case, qualified you for a specific interest rate. Your mortgage company or broker marks up the interest rate to receive a commission from the wholesale lender. You are already paying that mortgage company or broker your origination fee, if you agree to pay retail markup you are in fact paying double for your mortgage.

You can learn more about bad credit mortgage refinancing while avoiding costly mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Bad Credit Mortgage Refinance Information Article Source: http://EzineArticles.com/?expert=Louie_Latour

Mortgage Refinancing 101: The Basics of Refinancing Your Home Loan

By Louie Latour

If you are considering mortgage refinancing to lower your monthly payment or cash out equity in your home, doing your homework and researching mortgage lenders and their offers will help save you money on the new loan. Many homeowners don’t know where to get started when it comes to mortgage refinancing; if his describes you, familiarizing yourself with mortgage refinancing terminology will get you started on the right foot. Here are the basic terms associated with mortgage refinancing to help get you started.

Mortgage Refinancing Discount and Origination Points

When comparing loan offers you’ll hear a lot of talk about points. Points come in two flavors: origination points you pay the person or company that “originates” your loan, and discount points you pay in exchange for more favorable interest rates or loan terms. How much is a point? One point equals 1% of the amount you borrow. Depending on the type of loan you are applying for and the state of your credit you can expect to pay anywhere from 1-3 points. Not every lender requires points and you may be able to use points as a bargaining chip to receive a more favorable loan when negotiating with your lender.

Mortgage Refinancing Interest Rates

Interest rates are the charges you pay in order to finance your mortgage. Interest rates come in two varieties: you can choose a fixed rate loan that never changes or an adjustable interest rate that changes at regular intervals specified in your loan contract. Each type of interest rate has advantages and disadvantages depending on your financial situation. If you need a fixed payment amount that does not change over time in order to budget your finances, a fixed interest rate loan would be best for you. You will pay a rate for a fixed interest rate loan than an adjustable rate mortgage; however, you will have less risk and the ability to plan your budget around the loan.

Adjustable rate mortgage loans come with lower interest rates than the same loan with a fixed interest rate. These loans have lower interest rates initially because they come with an introductory rate. This introductory rate only lasts for a period of time specified in the loan contract. When the introductory period expires, the lender will adjust the loan to the actual interest rate and your payment amount will go up.

Mortgage Refinancing Closing Costs

Once you have been approved for the mortgage loan you will be required to pay closing costs to receive the new loan. Closing costs vary widely from one lender to the next so it pays to include closing costs in your comparison shopping. Many lenders offer the option of financing your closing costs with the loan. This is a very expensive option that you should avoid if possible. The amount of interest you will pay over the duration of the loan greatly outweighs any advantage you gain from financing these closing costs.

You can learn more about your mortgage refinancing options, including common mistakes to avoid by registering for a free mortgage refinancing guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinance Information Article Source: http://EzineArticles.com/?expert=Louie_Latour