by First Option Mortgage
10. December 2010 04:35
Refinance
Lowering the rate
The mortgage interest rate that you’ve been paying may be higher than what’s available on the current market, so it may make sense to refinance to a new low rate. If you’ve recently improved your credit score and financial situation, a refinance may be the right move because you’ll be able to snare a better rate. It will reduce your monthly payment, and could lower your total interest costs.
Building equity more quickly
In certain scenarios, a higher monthly mortgage payment can have financial benefits. The higher payment allows you to build equity and reduce debt faster. The combination of higher equity and lower debt adds stability to your overall financial picture. You can achieve this goal by restructuring your home loan into a shorter maturity. The traditional choice is a 15-year mortgage, because they have slightly lower interest rates than 30-year loans. Your monthly payment would still be higher because you’d be paying the debt off over a shorter period of time, but your total interest costs would be substantially lower.
Raising cash
A cash-out refinance is a viable option when you need money to purchase a long-term asset. Examples are home renovations, a college degree, and real estate property. Cash-out refinances don’t make sense for vacations, clothes, and cars.
Lowering your risk
To refinance to a fixed-rate mortgage can reduce risk if you currently have a balloon payment loan or adjustable-rate mortgage (ARM). Today’s low inflation level may make your ARM seem pretty attractive, but there’s no telling what could happen in a few years. Balloon payments are scary because you can’t predict what the lending environment will be like when your big payment comes due.
Consolidating debt
If you have two mortgages, consider consolidating them into one with a mortgage refinance. Your goal is to have an overall lower interest rate and payment, assuming that you have at least 20 percent equity in your home.
To refinance is a good way to build equity faster, finance a long-term asset, and to lower your rate, your overall interest costs, or your risk. These could all be considered “right” reasons. However, which one is the right reason for you and what is the best way to do it? Call one of our refinance specialists in order to pinpoint where you should be heading next!
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Tags: refinance, lowering your rate, mortgage, mortgage interest, mortgage payment, equity, home loan, loan, 15-year mortgage, 30-year loans, loans, interest costs, cash-out refinance, fixed-rate mortgage, adjustable-rate mortgage, arm, lending, consolidating debt, mortgages, refinance specialists
Refinance
by firstoptiononline
10. July 2010 09:44
How To Choose A Mortgage Broker
Despite the recent havoc in the mortgage business since the global credit crisis and housing meltdown which resulted in many mortgage companies both small and large going under (or being swallowed up by the largest banks) there will still be a mortgage broker that offers great mortgage solutions to families, individuals and businesses seeking financing. The one great thing that has come out of the recent housing mess is that most of the time, the low-quality mortgage broker ais gone leaving only the best, most dedicated and knowledgeable mortgage broker to serve your needs.
If you are still deciding whether to use a bank or mortgage broker for your property keep in mind that your mortgage broker can offer wholesale interest rates from the same banks you like but they are also able to help you structure your loan application just right in order to obtain a speedy loan approval and close on your new home or refinance quickly.
So how to choose a mortgage broker? Make sure you don't simply ask for rates and make your decision there. While we will have some of the best rates in the industry, there are many other factors that you should consider as well. Whether it is a bank or mortgage broker in they do not have one rate that fits everyone and you could easily find your rate being offset by additional fees and other add-on expenses to the mortgage closing. Which rate you end up with depends on your individual application, what your credit score is, how much the home is worth, what type of property it is and how much you are trying to borrow. A skilled mortgage broker will gather plenty of information to make a highly accurate assessment of your loan costs.
You should avoid any broker who tries to rush you too quickly without explaining all of your options. The best way to choose a mortgage broker is to interview several and make your decision not only on the offer they make you but also on your confidence in their knowledge and ability to get your loan closed quickly and easily. You also want a mortgage lender who has access to their own investors, or they have brokers that are aggressive enough to argue on your behalf to get your loan pushed through if there are any problems in underwriting.
The best way to choose a mortgage broker is to get prepared by obtaining a copy of your credit report (we can help you run your credit at any of our offices) and getting all of your income and asset information together such as W2s, tax returns and bank statements as well as any current mortgage information. Once you have your paperwork in order, schedule an appointment (face to face if possible) and come in for an initial appointment. The more details you are able to provide us with the more accurate our brokers can be with their offers to lend to you. Refinancing or purchasing a home can be a complicated process even for those who have done it several times before so do not be afraid to ask questions and see which agent is the best fit for you and has the experience needed to make the process as smooth as possible.
Finally, when making a decision on which mortgage broker you are going to use it is important to verify their website and make sure you are dealing with someone reputable who has been treating others well. This can include checking their lending license on the state's website, looking them up with the Better Business Bureau or verifying that they are members of the local state Association of Mortgage Brokers.