Refinance Your Mortgage Even in Hard Times

Need cash? Paying too much in interest charges? Worried about your growing debt? Mortgage refinancing could be the answer to your financial problems.
Simply put, a mortgage is a long term loan that's repaid over a period of time. Most mortgages are set on a monthly payment basis, while others are "accelerated" to allow the borrower bi-weekly or weekly payment options.
The interest rate is probably the most important factor in choosing a mortgage. It's important to shop for the lowest interest rate, as a lower rate results in lower monthly payments. If you've already locked into a mortgage with a high rate, you can refinance to take advantage of today's lower interest rates, and decrease your monthly payments.
Mortgages can be fixed or floating. A fixed rate mortgage means that the borrower is obligated to pay the set interest rate for the full mortgage term. In a floating mortgage, on the other hand, the rates and payments will fluctuate higher and lower as the market changes. There are pros and cons to both types of mortgages, and no one plan is the best choice for all borrowers. Many homeowners will use mortgage refinancing as a tool to move from a higher adjustable rate mortgage to a lower fixed rate plan.
The prevailing market rate keeps changing all the time. So it's quite possible that you have already committed to a mortgage with interest higher than the current rate. In this case, you are wise to consider refinancing your mortgage. In mortgage refinancing, the full payment of your current loan is entered into a new mortgage agreement, but at today's lower rate. If rates drop significantly, for example by two percent points, refinancing makes good sense. Check the prevailing rates of interest and compare them to what you're paying now.
Should you choose to refinance your mortgage, there are important factors to consider. If there are only a few years remaining on your mortgage term, it just doesn't make sense to commit to a lengthy new term. Mortgage fees and borrowing costs can also come into play. Some banks and financers will charge fees for closing a mortgage early. There may also be prepayment fees on new mortgages, and closing costs on new agreements. Ask questions of your lender and read fine print before committing to any new mortgage agreement.
When you need extra cash, mortgage refinancing can be a great route to take. If you've built significant home equity, you may be able to access this cash through a home equity loan. The value in your home can be used to generate cash that you need to consolidate debts, pay your child's education, or improve your home. Mortgage refinancing can be a wise decision when faced with a pile of outstanding debt. You'll be making just one payment, and you'll be able to avoid the higher interest charges from private lenders and credit cards. Your budget and your credit rating will be better for it.
If you need cash, are faced with mounting debt or are locked into a lengthy mortgage at a high interest rate, speak with your bank about mortgage refinancing.

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Let the FHA Refinance Mortgage Give You an Edge

FHA Refinance Mortgages require a great deal of research and study so that the best available deal on the market can be sought.

Only a mortgage banker is likely to be interested in the details of mortgage refinancing. The rest of us want to know that were getting the best solution with the least amount of work, so we can get on with our lives. Up until now, its seemed impossible to get out of doing all the research, but FHA Refinance Mortgages can spare us from that. You can get a solution from a refinance home loan that will be tailored to your exact personal needs. You can get just what you need at the right time, and know that youre working with an established organization.

The Federal Housing Administration can help you to refinance your current home mortgage whatever your reasons for wanting to do so, and offer you certain benefits as well. The Federal Housing Administration is a guarantor for lenders who provide the funding to you and permit you to use it in more creative and unique ways than do many of the more conventional lending institutions.

FHA Refinance Mortgages actually provide insurance on your loan or rather on your ability to make the loan payments. This permits the lenders to offer you more competitive and better interest rates as they have the Federal Housing Administration assurance.

Most loans are made to stable, proven borrowers with a long standing good credit rating. However, some people who dont fall into this category may still be approved for a loan. This group can include those who have less than perfect credit, but no record of bankruptcy in the past five years, and single parents who have only one source of income.

People who have no credit record may also be approved. No matter who you are, if you qualify, the FHA can probably be of benefit to you. You may be able to borrow on your home equity so that you can repair or improve your home, as long as you make sure that all improvements are energy efficient. This is the only rule that the FHA applies when deciding whether or not you should be approved to borrow money for the purpose of improvements.

Borrow cash and use your home equity to make home repairs and renovations; in addition, the building of a spare room and roof fix for your financial needs - the FHA helps to accomplish all this.

It is necessary to complete all of your repairs in an approved cost-efficient, energy efficient manner. This is to make sure that natural resources are conserved, both during the construction and afterwards. With growing concern over fuel costs and energy efficiency, this is something a lot of us are doing anyway.

Of course, you may find yourself wondering: what is it that an FHA Streamline Refinance Mortgage can offer you that a conventional lender cant? With all the lenders and loans out there, surely you can find a similar offer elsewhere.

However, a Federal Housing Administration Refinance Home Loan actually offers you ways to do things that you wont be able to with most other types of mortgages.

FHA loans offer mortgage companies a loan guarantee on your behalf

You can pay as little as a three percent down payment on your home, and finance its closing costs with this kind of mortgage.

The FHA is willing to help you find homes and lending situations that require no down payment.

A home that is in bad shape can be repaired using your mortgage

This type of loan can be used to buy manufactured housing or mobile homes

The amount you borrow for your mortgage can also be used to cover the cost of repairs to your home.

The name FHA Refinance Mortgage is a little misleading. The FHA itself doesnt do the lending. Instead, it guarantees your loan for the lenders who are willing to work with you. These lenders must abide by rules the FHA has set down, just as borrowers must. In return, lending institutions can be sure that their money will return to them, even if you default. This means that theyre willing to offer better interest rates.

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4 Rules Of Marketing For FHA Streamline Refinances

The FHA or Federal Housing Administration has used the FHA Streamline as a primary tool to provide insured mortgages for families to purchase or refinance homes or properties.

The Streamline(K) is a simplified version of the 203(K) to address specifically to smaller needs of individuals in terms of repairing homes and properties. Understanding the features and characteristics will help marketing for FHA Streamline refinances easier and more effective.

Basic Requirements

1. Get The Necessary Items.

The streamline pertains to the amount of underwriting and documentation to be processed by the mortgage company, costs may still be involved. Some of the needed items include the FHA-insured mortgage to be refinanced, current (not delinquent) mortgage to be refinanced, no cash taken out on mortgages refinanced via the streamline refinance process and the refinance leading to a lower borrower's monthly principle and interest payments.

2. Learn How Refinancing Is Offered.

Streamline refinances may be provided by companies differently. Some offer "no cost" refinances which do not require out-of-pocket expenses from the borrower. A higher interest rate on the new loan however, may be charged compared if the borrower paid or financed the closing costs in cash. All closing costs incurred during the transaction are paid by the company with this type of premium.

Closing costs may also be included into the new mortgage amount for some companies marketing for FHA streamline refinances. This is possible if an appraisal confirms that there is sufficient equity in the property. Streamline refinances can be done without the use of appraisals, but the new loan amount cannot go beyond the currently owed amount.

Investment properties or properties which the borrower does not consider as a principal residence can be refinanced without an appraisal required. Closing costs, in effect, may not be included in the new mortgage amount.

The "no cash-out" loan can be used to buy out the equity of an ex-spouse as long as it is documented in the divorce papers. The equity is considered indebtedness. Properties purchased not more than one year ago and are not FHA loans can lead to the amount being the appraised value plus closing cost, or the original sales price plus closing cost.
Searching for Benefits

3. Identify The Advantages.

FHA refinancing programs include repairs completed after closing with loan proceeds. It offers low down payment with a minimum investment of only 3%. Other advantages include loan fees that may be financed, the mortgage being FHA-insured, no inspection required, no general contractor required, being a great tool for REO or Real Estate Owned properties, mortgage amount may be increased when combining Streamline(K) with EEM or Energy Efficiency Mortgage and having a single loan amount for the purchase, refinance and repairs.

FHA streamline is not for purchase transactions only but can also be used for the refinance of an existing loan or purchase or HUD REO property. The owner or homebuyer is responsible for all repairs from the proceeds of the loan. The repairs can start after the loan is closed.

Since the repairs are only minor, a general contractor is not required. You can hire one or perform the tasks yourself, provided you present to the lender your ability to perform the needed refinancing properly. An FHA inspector is not required provided that the homebuyer can show receipts or proof of satisfactory completion.

4. Identify the Necessary Repairs.

Marketing for FHA streamline refinances require you to know the type of items eligible for repairs. Inclusions are replacement or repair of roofs, gutters and downspouts, HVAC system upgrade or repair, plumbing and electrical system repair, replacement or upgrade, repair or replacement of existing flooring, minor remodelling, exterior and interior painting, weatherization like storm doors and windows and insulation, appliances not exceeding $2,000 in total after the required minimum of $3,000 of eligible items for repair are satisfied, non-structural improvements for disabled person accessibility and basements and exterior decks.

Items that require structural modification or major rehabilitation are not included. If major repairs are needed, the homebuyer should opt for the regular FHA 203(k) program. A maximum of 2 payments may be made to the homeowner or contractor during refinancing.

Any FHA-approved lender can process the mortgage loan.

Most of the loan fees like title update costs, permit costs and origination can be financed in to the loan. Always point these out when marketing for FHA streamline refinances.

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Mortgage Refinancing Ideas

Mortgage refinancing and second mortgages have become popular as the market tightens and interest rates become volatile. Mortgage refinancing is another type of facility that is provided by banks to their customers so that they can fully satisfy their needs for finance. Mortgage Refinancing have fast, flexible access to cash with a home equity lineCompetitive rates. And yet, a few minutes from now, I'll show you how mortgage refinancing can give you a lower payment without this extra "kickback. With your free membership you'll get immediate online access to the mortgage refinancing videos and blueprint. To get the best mortgage refinancing deal you need to deal with an honest broker that genuinely has your best interest in mind. American Federal has justthe terms and mortgage rates to make your mortgage refinancing the easiest andleast expensive option of any mortgage lender you'll find. The benefit of the mortgage refinancing is that the premium decreases and lowers the mortgage rates. Apart from the information, you will also find hundreds of online lenders offering mortgage refinancing. Is it an opportunity for mortgage refinancing in other currency, with higher interest. Better Mortgage Refinancing strives to bring you easy dependable routes for your online mortgage research needs.

To get the most competitive mortgage refinancing quotes, completely fill out the simple mortgage application provided. We want to make it easy by allowing you to request your mortgage refinancing quotes online from convenient online mortgage loan applications. Mortgage refinance quotes don't have to be a painful experience, we can help you find the right mortgage refinancing quotes at no cost to you. To receive your free quotes on highly competitive mortgage refinancing home loan rates from qualified lenders, just click here and enter your information. The home mortgage refinancing needs are different for different people. Some people just go for mortgage refinancing because they want to change their mortgage rates and interest rates and they want to get benefit of new interest rates. You can search information about home mortgage refinancing from different websites on internet then you can make your final decision about home refinancing. Mortgage refinancing and second mortgages have become popular as the market tightens and interest rates become volatile. Mortgage Refinance Fixed Rate Mortgages Adjustable Rate Mortgages Debt consolidation Loans Cash Out Refinance Amerisave's Instant Rate Search is your quick and comprehensive guide to the best mortgage refinancing – Amerisave can even contact out automatically whenever mortgage refinancing rates drop.

Mortgage refinance programs to help you save money, get cash out, lower your interest rate, or convert an adjustable rate mortgage to a fixed rate. Mortgage refinance provides an opportunity to the people to fulfill their obligations. Mortgage refinance means that applying for a secured loan to pay back another loan that was being set against the same property. Mortgage refinance is the best option if the interest rate decreases or remains fixed because it provides the low mortgage rates. Mortgage loans can be difficult under normal circumstances, and bad credit makes it even more difficult, but not impossible, and because this problem has increased dramatically over the years, lenders have had to come up with financing options for this type of loan. Mortgage refinance quotes don't have to be a painful experience, we can help you find the right mortgage financing quotes at no cost to you. Popular Refinance Home LoansWhether refinancing or buying a new home, Quicken Loans can help you choose a mortgage with ease. Learn how to refinance to a traditional fixed-rate mortgage loan or an FHA loan. Find out which home loans need a 20% down payment when you refinance, and how to get a flexible, interest-only mortgage payment. COmpare our home loans, find mortgages in your state and get a low mortgage rate today. Quicken Loans Mortgage NewsGet your mortgage news from the experts at Quicken Loans. Stay up-to-date with all the latest mortgage industry news, from interest rate announcements and other national housing market trends to home buying tips and more. Subscribe to our free mortgage news today and make better-informed financial decisions tomorrow. Apply for your mortgage online or talk to a Quicken Loans home loan expert today.

Avoid monthly mortgage insurance payments with the PMI Buster. Get real-time national and local mortgage rates. Explore mortgage refinance and home equity loan options. Estimate monthly payments with our debt consolidation mortgage calculators. By comparing interest rate quotes, you will be able to make an informed decision on a new home loan, home equity loan, mortgage refinance or second mortgage. As you search the real estate market and decide on a new home, make sure to become educated on the mortgage process by working closely with a mortgage broker. Finding and obtaining the right mortgage is not that easy. It involves a number of critical steps, the first and most important of which is locating the right mortgage lender. Fixed mortgage rates and adjustable mortgage rates are dominant players in the mortgage interest rate field. Each borrower must decide what type of mortgage interest rate he is willing to pay.

Before obtaining a vacation home mortgage, prospective homeowners should carefully study their mortgage options and rates and determine how much they can afford. All of this is done with a focus on matching a borrower with the best possible mortgage broker. Did you know that your mortgage payment includes hundreds of dollars markup that you'll pay every month just to give your mortgage broker a bonus. And yet, a few minutes from now, I'll show you how mortgage refinancing can give you a lower payment without this extra "kickback. With your free membership you'll get immediate online access to the mortgage refinancing videos and blueprint. These videos were produced by a retired mortgage broker and will show you what no one else is talking about when refinancing: How and why you need to avoid the retail markup of your interest rate. Claim your free videos today and find out how to get the perfect mortgage or we'll pay your closing costs. Once you know these two things, you can determine if your accumlated monthly savings from refinancing will be enough to recoup the costs of refinancing your mortgage loan. Keep in mind however, that this calculator will assume that you have made all of your mortgage payments on time, as scheduled.

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Costs Associated with Home Refinance

Many people are surprised when they look into home refinance or even as they go through the process to find out how many costs are associated with such a loan. Many people forget this, but when you get one of these loans it is just like applying for a home loan the first time around, the only difference is that you are replacing the first loan with this second one. Because this is the same with one small difference, there are still costs – often called closing costs – that are associated with it. You need to be prepared to pay these and you need to review the Good Faith Estimate so you can be sure that the savings that you will get when you refinance will justify the money that you are paying out.

Home Refinance Costs

You may not know this, but when you are thinking about home refinance costs, you should plan to pay three to six percent of the remaining principal balance. This sounds like a lot, but it isn’t any more than you paid when you got your home loan, the only difference is that you are doing it again. There are many fees that you can expect to pay and these fees will vary from area to area as well as from lender to lender. Some of these fees will be just $15 in some areas while they will be $100 or more in other areas.

Some very common fees that you will see are an application fee, appraisal fee, homeowner’s hazard insurance, and review fees. In addition, you will probably be charged for a title search and title insurance, home inspection fees, loan origination fees, points, and mortgage insurance. When you add all of these things up, you will usually be looking at a total in the thousands of dollars, but this is truly dependent upon the type of loan you are applying for, as well as how much money you have left on the loan principal.

One fee that many people forget about when they are calculating the cost of home refinance is any pre-payment penalties. If you are lucky, you will not have any, but many loans have this penalty written in so that they get money if you decide to pay off the loan sooner or if you decide to refinance. Sometimes just asking for a lender to waive these fees is possible or asking them to lower it. Many people don’t think to ask and a good deal of the time the lenders are willing to waive the fees or reduce them substantially to make the home refinance more affordable for you.

When you look at all of the costs associated with home refinance, you may be wondering if this is something that you are ready to do. This process does cost money and it does take time and it is not the best option for every homeowner. Some people find that when they look into it, there simply is not a reason to refinance based on the cost of doing this as well as their current loan program. Other homeowners find that refinancing can help them save a lot of money, not to mention stress! Consider your options carefully before assuming that this is your next step in home ownership.

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How to Choose a Home Loan

For most people, getting a home would be the most expensive investment ever made in one’s lifetime. That’s simple because of the long term financing required.

A home loan (or mortgage loan) is considered a term loan, secured on a property that you purchase. And depending on which part of the world you live in, the lending bank will have first charge on the property, followed by your local government’s provident funds board.

Before you go about hunting for a ideal home loan, do consider the following basic factors:

a) As a general rule of thumb, your requested home loan monthly instalments and other long term debts, such as car loans, etc, should not exceed more than 35% of your gross monthly income (note that by the definition “gross”, we are referring to prior deduction for local taxes);
b) Always allow a percentage for foreseeable contingencies, such as a potential increase in your requested bank home loan over the defined loan period;
c) If your state or country you live in allows for government interest free loans, find out what is the limited percentage you can utilize;
d) Remember to factor in the bank’s defined overdue interest rate should there be a possibility of you defaulting the current month’s loan repayment;
e) In case you’re not aware, in the event that if you fail to pay your instalments within the stipulated timeframe, the bank has the right to exercise the option of recalling the loan and repossess your purchased property as well; and,
f) In the event of a repossession, and the sales of your property are not able to cover the loan amount and interest from your agent bank, you may be made a bankrupt, should you not be able to compensate on the shortfall amount.

As a general principle, home loans can be classified under two broad categories: Fixed rate loans, and Floating or Variable rate loans. Let’s examine the main differences in these two types of loans.

Fixed rate loans as the name implies, indicates that the interest rate is guaranteed and fixed in the first few years on the borrowed principal sum. This is a good option to consider during economic periods where the interest rate is low, or if your want to budget with certainty over the first few years, since the interest rate will not fluctuate nor change, even if interest rates rise or fall during that defined initial period. As such, this form of loan is ideal for newly-wed couples or folks who have just landed a stable monthly based income job. However, do note that after this period, the interest rate will be recalculated to factor existing market conditions.

Floating or Variable rate loans on the other hand will fluctuate in accordance to the economic market. However, before you go assuming that if the market goes down and expect the banks to lower their interest rates, think again! Trends have often shown that banks usually take awhile to adjust the lending interest to home owners downwards, but are often quick to adjust upwards in possible times of uncertainty. And depending on where you live in, banks are usually obligated to inform borrowing parties with a thirty day advance notification before adjusting this lending interest. Likewise, as a home owner, you have the right to re-adjust or exercise your refinancing options.

As a word of consideration, you should speak with the bank only when you intend to shorten your home loan period, rather than if you wish to lengthen it since this will likely have an effect on the overall interest rate and period.

Do visit our link to find out more on how you can further reduce your home loans and other related loans as well.

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What You Need to Know to Refinance a Home Mortgage Loan

For many people there comes a time when it makes sense to refinance their home mortgage. There can be any number of reasons to do this but for most people the primary goal is to lower their interest rate and their monthly payment. Everybody's situation is different so the reasons for doing a refinance can vary from person to person.

When you do a home mortgage loan refinance you are basically taking out a new loan and using it to pay off an existing loan. You of course do not want to refinance if your new loan will cost your more in interest and monthly payments so it pays to research any new loan carefully.

As you delve further into the realm of refinancing a home you will undoubtedly run into terms that you may not be familiar with. These may include the following:

Term Length - This is the amount of time you have to pay back the loan. The majority of loans go for either 15 or 30 years. The longer the term the more interest you will pay during that term.

Fixed Rate Mortgage Loan - This is a mortgage in which the rate is set at closing and does not change for the life of the loan.

Adjustable Rate Mortgage (ARM) - This is a mortgage with an adjustable rate. That means the rate can move up or down depending on what the prime rate or treasury index it is tied to is doing. This type of loan usually starts out at a low rate that makes it a great deal, but consumers need to be careful if and when the interest rate goes up, increasing the monthly payment.

Annual Percentage Rate (APR) - This number represents all the costs associated with a mortgage shown as an interest rate. It can vary among different lenders because they all calculate it a little differently. If you are comparing rate use the Good Faith Estimate that all lenders are required to provide.

Good Faith Estimate (GFE) - This is a document that all mortgage lenders are required by law to provide to all applicants. It will give a full account of all the estimated costs for a loan from a particular lender. You should have this in hand no longer then 3 days after filling out a loan application.

Loan to Value Ratio (LTV) - This ratio is a percentage that shows what percent you are borrowing against the appraised value of your home. Keeping this ratio below 80% is what most lenders are looking for. If your LTV is higher then 80% you will probably be required to purchase mortgage insurance in order to refinance.

Points (Discount & Origination) - There are two types of points that you can pay. Discount points are paid up front at the closing and are used to bring down the interest rate. Normally one point will equal one percent of what your total loan amount is. Origination points, or fees, are paid for the services rendered by the loan representative.

Refinancing a home mortgage loan can be a good way of freeing up money for other uses but it pays to pay close attention through out the process because you don't want some hidden cost or fee to make your new loan cost more than the original mortgage.

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Refinancing with Bad Credit - Should you Refinance

You have a mortgage, and would like to refinance the loan. But you know your credit is not very good, maybe even bad. There are lenders in the financial market that will make loans to people with less than perfect credit. As a lenders risk goes up so does the interest rate, so if you got bad credit you can expect a high interest rate. If you can drop your rate by at least 2 % saving money is still possible.

There are several questions you should ask yourself when considering refinancing your mortgage. First of all you need to know your credit stats. Has getting credit been a problem for you in the past, if so you will want to take control of your finances. Sign up for a credit monitoring service to look for ways to improve your credit. Try to bring the balance of some of the revolving accounts down before you refinance your mortgage. This will make lenders feel better about loaning money to someone with less than perfect credit. When you refinance your home mortgage you want to better the situation, instead of hurt it.

You will want to calculate all of the costs before making a decision to refinance. When refinancing you need to be able to lower your interest rate and it is always great to get a shorter loan life. Sometimes people are only interested in lowering their monthly payments. However, you will need to remain in your home long enough to benefit from refinancing. There would be no reason to refinance if you plan on moving within a few years. Take the time to figure out how long it will take to recover the costs of refinancing your home. Loans may offer a lower rate of interest but have excessive closing costs and fees. You should find out all costs involved including any additional income taxes you may be charged.

The 2 % Mortgage Rule

The two percent rule refers to your Home Mortgage rate, can you drop your new rate 2% below current rate. Lenders recommend that you refinance your mortgage if you can drop the interest rate two percent less than your current rate. This is just a general rule and should not be the only deciding factor when trying to decide whether to refinance or not to refinance. Are you planning to live in your home for over five years, or do you plan to move. This can be important factors when deciding to refinance.

The average the cost of refinancing is at least 3 % of your home mortgage loan. Three percent of the mortgage is a lot of money to spend, so you want to be able to recover these costs when refinancing your mortgage. If you are making payments on your home and plan to buy a larger home in the near future, then a drop in the interest rates may be the perfect time to purchase a larger home. This could be a great time to refinance, into a larger home. There are always many decisions to make when purchasing or refinancing a existing mortgage. To find out more on mortgages visit this website “youhave2.com” for all the answers you need.

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Best Mortgage Rates Refinancing: Tips on Saving Precious Time and Money

Refinancing a mortgage is becoming more and more common all over North America. Given the economic crisis, the poor real estate market, and dropping interest rates, many people are looking for ways
to save money or even more importantly looking for ways to save their homes.

There are a few reasons why people may want to refinance their mortgage. In some cases it is to take advantage of lower interest rates that are available at the time. In other cases it is to be able to take out
equity in their homes to pay off bills, or to have some extra cash in their pockets. In more dire circumstances, a home owner may need to prevent a foreclosure and look for ways to save his/her home.

Refinancing actually means getting a new mortgage and this can be quite costly. It is important to look over your original agreement to see if there are any prepayment penalties , as this could literally cost
you thousands of dollars if you are not careful. Remember these are not the only fees that are involved with refinancing, there may be upfront costs and closing costs, you may also have to take out mortgage
insurance as well.

If you are considering refinancing your mortgage, you should ask yourself how long you plan to stay in your home. If you are considering moving in the next 3 to 5 years, you may want to reconsider refinancing
even though you may be lowering your interest rates. The reason is that the costs involved are going to be quite large and you will only benefit from a refinance if you stay in your home long enough to re coup
the money spent on the refinance process.

One of the most important things you can do is to educate your self as much as possible before settling with a mortgage broker. You will want to learn about all the different mortgage packages available that
re being offered from the various lenders and banks. You will need to understand what type of agreement is being offered to you and you will have to be able to determine if this is the right contract for you.

The best thing is to start doing some online research and look into all the different advantages and disadvantages of refinancing, check out as many mortgage broker websites as possible in your area. It is
also wise to talk to as many lenders and let them know that you are shopping for the best possible deals.

You will want to know what the costs are, are there any prepayment penalties, what are the rates being offered, what are the closing costs, can you get a good faith estimate? These are some of the
important questions you will need to ask.

Another thing is that every time you apply for a mortgage refinance, the banks and lending institutions will do a credit check and of course, the more credit checks the lower your score will be.

The advice would be to wait until you have as much information as possible and have a list of mortgage brokers at your finger tips. When you are ready to start applying for the refinance process, you should
try to do them all in the same month, that way your credit rating will take all the hits in the same month and that will prevent your credit score from being penalized further.

These are just some things to consider before deciding if refinancing is the right thing for you.

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Mortgage Refinance Loans

Within recent decades mortgage loans have become an everyday occurrence, spreading over all the groups of the society. The necessity and importance of mortgage loans are doubtless, therefore everyone who wants to take advantage of mortgage should gain a complete understanding of its types, relevant terminology, benefits and such options as mortgage refinance.

Choosing a certain type of mortgage it is important to know to which extent interest rates depend on the value of real estate and what mortgage loan rates evolve from. In general, all mortgages can be divided into secured and unsecured ones. The main types of mortgage are the adjustable or variable rate mortgage and the fixed mortgage. Adjustable rate mortgage allows to change the interest rate within certain periods of time. The intervals depend on a fixed financial index, with the payment rising in accordance with the interest rates. In case the latter are low, this type of mortgage loan gives 100% benefit.

As to the fixed rate mortgages, it is the most widespread type of mortgage loan, while the interest rate doesn't change during the whole term of loan. Being the oldest type of mortgage, it is especially popular among householders. Other types of mortgage include balloon mortgage, two-step mortgage, jumbo mortgage and hybrid mortgage. Actually the type of mortgage is determined by the mortgage loan program of a certain mortgage loan company.

If the client is going to take out a new loan which permits to compensate the current mortgage, he or she can use the option called a refinance mortgage loan. Having a low interest rate, the refinance mortgage loan is a good choice for those who want to pay back the whole debt in a short term. In addition, a refinance mortgage loan is an ideal opportunity to pay off the debts for those who are no more able to fix their mortgage loan.

Refinance is basically performed using a second mortgage loan which has both incontestable benefits and some significant disadvantages that should also be taken into consideration. Thus, in case the second mortgage loan is not compensated for, the client just loses the property. So, before deciding on mortgage refinance one should determine the affordable interest rate. On the other hand, the interest rates of the second mortgage loans are usually fixed so that borrowers could save their money. Besides that, mortgage insurance isn't required, if mortgage payments are performed in two steps – a first mortgage loan and a second mortgage loan.

Mortgage refinance can be very helpful and effective for borrowers if they are aware of some mortgage tips. Above all, while seeking a convenient type of mortgage loan one should take into account his/her current financial situation. Whatever refinance mortgage loan is chosen – with fixed interest rates or with variable interest rates – one has to study all the connected data to prevent mistakes which may lead to the loss of real estate. It is also important to find appropriate mortgage loan rates and interest rates among a great variety of mortgage loan companies and lenders. Here, the Internet can be a useful tool for picking the best type of mortgage refinance possible.

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The Busy Persons Guide to Home Mortgage...

The requirements that qualify you for getting a mortgage loan varies depending on the lender you decide to go to. Some lenders are particular about the most personal of details while others are not.

It really doesn't matter whether you have bad credit or good credit when you want to mortgage your home. A person with bad credit has several mortgage plans that he or she can choose from. The most popular mortgage plan for people with bad credit is the 100% mortgage loan.

You can have your repayment day extended if you are unable to meet up on your monthly mortgage payments. Most mortgage extension periods often fall between 12 and 24 months, depending on your reason for failing to meet the original deadline. Most lenders will allow you to catch up on your monthly payments for your mortgage by adding a fraction of your outstanding payment to each month.

Your mortgage lender may decide to help you refinance your mortgage if you have missed a monthly payment; it pays to be regular in your mortgage payments so that you can get consideration from your lender in the event that you miss a single payment. Some mortgage lenders may go as far as moving your current payment missed to the end of the loan so that you can meet up with payment if you missed it.

Banks can be contacted for mortgage loans. You can also obtain a mortgage loan from a property seller if you wish. But in most cases, mortgage homes are the most excellent sources of mortgage loans.

Homes that are being seized by banks or mortgaged homes can be redeemed. A bank may offer to reduce the amount of the property being foreclosed to give the owner the opportunity to prevent it from being seized. In essence, some banks may present their borrower with a short sale option where a discount on the property is given to help the property owner pay off his or her debts.

Getting a foreclosure notice on your home can be the crowning effect of a terrible day. If your financial situation is so precarious, you may be given a short sale offer. Short sale is often preferred by banks and is a discount on your home which may enable you to pay the mortgage you own on it faster.

There are lots of online mortgage companies that are leading mortgage providers. For the internet enthusiast, the right mortgage loan plan is simply a click away. Intensive search on the internet will enable you to strike a gold mine in mortgage loan information.

Article Source: http://www.jodee.biz/articles

Mortgage Refinance Options to Think About

Becoming a homeowner is a new step as many people invest their money in a house. A homeowner is someone who owns, or is paying for their own home. Very few people in the world can afford to purchase a home in one payment so the world of mortgages and mortgage payments 'came to be'. Mortgage refinance options are always available no matter what type of mortgage you already have in place on the home you are living in.

An ARM Mortgage

An ARM is another name for an adjustable rate mortgage. This type of mortgage is going to give you as a homeowner a small payment for a few years, and then you will be able to afford a bigger house, or even a more expensive house. ARMs right now are most often becoming nightmares. As rates go up, the mortgage payments on the homes that are financed with the ARM type mortgage are rising and homeowners can't afford what they have.

ARMs are considered as a financing tool. A financing tool is to help people make the most of their money and their financial situation. Rising prices of gas, homes, mortgages, and the rising prices of everything in between are making it nearly impossible for some people not to default on loans. Mortgage refinancing can save you money if you are finding the rates are rising too fast.

What Can You Do

Mortgage payments are based on a percentage of interest. That percentage of interest that you pay on the money you borrowed to purchase that home can change if you have an ARM type mortgage. Always read and know what the interest rate is, and if it is changing. Follow the interest rates to know if your payments are going to rise, or if you will be saving money this coming month. Refinance your mortgage to make the most of your monthly payments.

What is Your Minimum Payment

Minimum payments are just what the words say, making the least amount of payment that you can owe at the present time. If you are making minimum payments, you are paying the most you can on the interest. When you have a little extra money, you should consider making more than just the minimum payment so you save money on the interest that is building. If not you could be looking at a lower credit report or score.

If a homeowner is not careful, it is easy to fall into the trap of making minimum payments, and paying less than the interest that is accruing on the balance of your loan at the present time. When making just a minimum payment and you see your interest building higher and higher than the payment you then have a negative amortization. You owe more than you did before making this month's payment if you have a negative amortization.

How Much Must You Pay

When you see your small payments are not making a dent in the amount that you owe on the property that you have purchased, you need to start making more than a minimum payment or you might want to consider a mortgage refinance option and lock in that interest rate that you can afford. Interest rates that are too high are going to make you pay more for the house than you ever bargained for when you purchased the home.

Article Source: http://www.indexed-articles.com

Refinance Used Car Loan – How To Lower Refinance Auto Loans

If you are going through some credit crisis, then you might consider doing refinance used car loan. Because of the current condition of the markets today, a lot of people are resorting to higher APR car loans.

If you are one of them, then apply for the refinance used car loan so you can make the most out of the situation and get your money´s worth – even if you don´t have to shell out as much.

The truth behind refinance used car loan is that your credit score might be affected. So you have to be careful when you´re making deals with your lenders. If you gain a bad credit score while doing this transaction, you will have a hard time clearing up your name.

Not only is this refinancing car loans, this is also refinancing used car loans. Many people are not aware that insurance companies charge high for a reason. But you cannot be blamed if you want to have lower interest rates and lower monthly payments, therefore the need for a new lender.

But the whole point of getting into the refinance used car loan is that you need appraisal to your auto loans. Unlike homes, appraisals in cars can be based on the equity of your vehicle. In a nutshell, the percentage is based on how much you need to pay off from your current car loan and not really the value of your car.

When you resort to refinance used car loan, make sure that your credit report is available for your lender. You also have to double check that the information your lender gives you is accurate.

Refinance used car loan can also be done online but we suggest that the whole negotiation be done face to face in order to avoid bad credit auto finance. This will only get you in deep trouble with regards to your credit card score.

Don´t worry. If you do proceed with your refinance used car loan plan, your credit score will not drop. Just make sure that you make the monthly payments to your new lender on time.

If you keep paying your bills right on schedule, this will not reflect negatively on your history. Your APR will not drop. You have to maintain this if you still want to apply for other loans.

Finally, you can benefit from refinance used car loan because you save money. Look at it as home refinancing. When you refinance your loans, you get to pay less each month, therefore you get to save more.

You don´t have to allot that much money because your interest rate is low. Just make sure that you pay this on time so the bills won´t pile up.

Article Source: http://www.hallofarticles.com

The US Mortgage Market Today: How Are We Doing?

The whole world has been been slapped dizzy by the today's economy, in the USA as much as anywhere else. Home prices, after a thrilling ride to an improbable peak, have been in a terrifying, turbulent power-dive, shaking people out of their homes from coast to coast. Banks have lost money on loan defaults, and they've lost money on the employee-hours spent processing them. Those bold investors who dared to buy were glutted with properties for sale at auction. The banks got in on the action, buying foreclosed properties at deep discounts and listing them with the MLS, in an attempt to recover their losses.

Erst the banks bought the properties endorse from sale they began catalog them on the MLS with explicit estate companies and were ideation some impression. The lenders were dense at tops with their financing but the force pleased them from the gravity, and they were erst farther flexible to suit loans to commonality that did not keep posted unlimited amounts of financial bereaved.

Now, thanks to timely government backing, lenders are able to offer some of the best-looking mortgage packages we've seen in decades. Low- or no down payment loans are available, at amazingly low interest rates. Properties reacquired by banks desperate to recoup their foreclosure losses are on offer at fire-sale prices, promising instant equity to buyers who are able to act now.

As the loans were available much easier, the investors started buying properties and buying it from MLS rather than auctioning brought much more profits to their investments. Moreover, it changed the whole concept of getting a property without actually seeing it than with an option of seeing it and investing the money as the banks offered them at much lower price.

The contour for the finance peddle is satisfactory; it is projected to be reinforcement on blessing of the dupe within a conjugate of oldness. The kinsfolk who were flourishing sufficiency to admit now while guts toll and the pad prices were so funereal ravenousness see a sweeping mastery in their authorization once the berth standards elevate to where they should be.

With people losing their jobs, and auctioning their homes all over the US along with a hard situation, even after the Government has stepped in to rescue people from their current circumstances, few other options can also be tried in order to save people from losing their properties. Refinancing is one such option for people who pay higher amount of interest to convert it to a lower rate, and for people struggling with higher ARM loan payment, they can see a huge decrease in their expense if they try to refinance with the lower rate deals available currently.

Every crisis bears the seeds of opportunity. The government's aid has eased the pressures felt by banks due to foreclosures. Lenders' fears have abated, and they're once again willing and able to offer loans profitable to both lender and borrower. People are growing confident that, at this golden moment in history, there are easy profits to be made in real estate.

Article Source: http://www.happy-living-articles.com

4 Sound Reasons to Obtain a Refinance Home Loan

What is a refinance home loan?
A refinance home loan or a house loan refinance is a new loan obtained through your lender or a different lender to pay off existing loan. However, you may choose to request for a reduce interest rate and or cash out on your homes equity.

When should I refinance my house?
It is a known truth that interest rates are lower than they have been in years. This is due to our fast paced and ever changing economy and marketplace. Now would be the ideal chance to refinance your house to acquire a lesser interest rate. Even a .25 difference can save you thousands of dollars a year in mortgage payments.

Why must I refinance my house?
There are some reasons home owners decides to refinance. The four most general reasons comprise:

To obtain a lower interest rate
House owner normally are alert of interest rate down fall. They take advantage of this chance by applying to a refinance loan to lower their existing interest rates and save money on mortgage operating cost. The cash that a borrower saves on mortgage operating cost can be invested in other financial investments.

To get a refinance cash out
A number of house owners who obtain enough equity accumulated in their homes refinance to cash out their equity and get a lesser interest rate

To make home improvements
Sooner than later you will discover that maintaining your house is hard work (not to mention quite pricey). In most cases, house owners will pursue a refinance, rather than a individual loan, in order to save on interest rates. A private loan could have higher interest rates and are normally, not as large as a home enhancement loan.

To alter loan programs
A majority of house owner refinance because they are not satisfied with their current loan program. They may be under a 5 year arm, but somewhere along the line they decided they would favor a 30 year fixed loan. Whatever the motive may be, a refinance home loan will resolve the problem.

What are the benefits of refinancing my house?
There are some benefits incorporated with refinancing your home, including:

Your credit may be in healthier standings then before you purchased your house, now you can refinance and get a more suitable loan, with lesser interest rates and requisites.

Or, you can obtain a house equity line of credit and have cash obtainable when you want it.
With refinance cash out, your lender can consolidate your bills and pay off all of your balance due. You will not have to deal with the hassle by yourself.

What are the different refinance loan options?
As with a conventional loan, refinance home loans offer several of the similar loan programs, such as:

10/15/30 year fixed
Zero Down
Interest Only
And so on

Where can I refinance my loan?
You can apply for a refinance home loan through your existing lender. Or you can explore for a new lender more suitable to your monetary needs. This search can be done by internet search, flipping through the yellow pages, or consulting with your real estate agent.

Article Source: http://finance.articles-and.info

Home Refinancing For People With Bad Credit - Why Refinance Online

With bad credit, refinancing your home online will help you find better quotes, service, and application process. With hundreds of sub prime lenders to choose from, you can be sure to find the lowest rates. You can also enjoy service that can be customized around your schedule, getting an answer almost any time of day. And of course, online loan applications will speed processing.

Online Offers Better Mortgage Refinancing Quotes

With thousands of lenders online, financing companies secure your business by offering competitive rates. Even with adverse credit, you can find refinancing rates only a couple of percent higher than the average loan. All it takes is a few minutes asking for loan estimates.

To save even more time, you can start with a mortgage broker site. By partnering with dozens of lenders, one site can offer you several side-by-side quotes. Most sites will also list closing costs and points required. Of course, you also have the choice of going to individual sites to collect quotes.

When you ask for a refinancing rate estimate, be as accurate with your information as possible. Enter a realistic credit score to get rate quotes that won’t jump after your information is verified.

Find Better Mortgage Refinancing Services Online

Online lenders also strive to give you better service. Most companies offer a variety of means to connect with a service representative. You can usually call or email outside of business hours and still get a response. A lender’s website is also filled with a wealth of information, answering the most common questions.

After your loan is completed, you will most likely be able to set up an online account to monitor your loan’s repayment. You can check the status of your balance, interest rate, and even your payment status.

Better Refinancing Application Process

Once you have selected an online lender, you can submit your application online by entering your basic information over a secure connection. Or if you prefer, your application can be sent by mail for your completion.

With many lenders, final paperwork can be notarized at your home or workplace. A notary will arrive as scheduled so you don’t have to make any special trips.

Article Source: http://www.getfreereports.com/home

Guide To Foreclosure Prevention

Foreclosures have been on the rise in the past three years. Many families are faced with the prospect of losing their homes due to defaulting on mortgage payments. However, there are a number of foreclosure prevention methods you can use to prevent your house from being repossessed by the bank or lender.

The first thing to do is not to wait until it is too late to make any effort to save your property. This means that you should make an effort to respond whenever you receive any notification from the lender regarding unpaid or overdue mortgage payments. The faster you respond to the lender notifications, the better your chances of avoiding a foreclosure.

Today, there are a number of options that can help you prevent your house from being foreclosed. For example, you can modify your current mortgage by getting a short repayment plan or a refinance loan. Apart from this, you can also consider a short sale, a friendly foreclosure, a deed in lieu, among others.

When you choose to modify your existing mortgage, you have to arrange with the bank to temporarily change their terms. The lender will either reduce the interest that you will be paying, or he can extend the amortization. This extension will reduce your overall payments. If you are having a difficult time modifying your current mortgage by yourself, you should engage the services of a foreclosure negotiator. Go for a professional who works with a registered realtor company and who has handled matters similar to yours before.

After the modification, the borrower and the lender will agree on a repayment plan. In the arrangement, the borrower will agree to pay part of the outstanding mortgage payments and arrange to pay the balance over a period of months. The lender will determine the amount that the borrower should pay to cover these arrears. This foreclosure prevention plan is usually approved if you have proof of income.

Article Source: http://www.freeliveknowledge.com

New Fannie Mae/Freddie Mac Streamline Refinances May Help Prevent Foreclosures

The number one FHA and VA loan producer, Rodney Anderson proposed a streamline refinancing-patterned policy hoping it would be the solution to the foreclosure-caused housing slump. The program intended for Fannie Mae and Freddie Mac to implement is also expected to cause economic stimulation and monthly federal income from mortgage insurances.

The government FHA and VA streamline refinances have been effective for 20 to 30 years. To adapt to the recent needs in the foreclosure crisis, with a little common sense and a few adjustments it could be implemented for more beneficiaries. Good borrowers, on-time payers can dodge loan delinquency and even home repossession.

The streamline refinance policy in effect allow debtors who has been current in 12 or more of their most recent FHA or VA payments to refinance in more affordable loan rates without re-qualifying.

In this revised program, Fannie Mae and Freddie Mac will implement the same policy to compliant loans and borrowers with a 12-month on-time payment record.

Responsible lending. This proposed streamline refinancing is for the noble borrowers who will benefit by refinancing with more manageable interest rates. This will hopefully protect them from foreclosure.

But lenders must be protected. So, mortgage insurance must be mandated to 30 to 40 percent rather than the old standard of 22 percent. Borrower protection from deceitful lenders must be implemented too. With monthly loan insurance payments, the government will even have an inflow of revenue from the borrowers.

With the continuous increasing of repossession cases, the brilliant revision of Fannie Mae and Freddie Mac of the streamline refinancing policy is just in time. Though this is not enough to save the housing industry and homeowners from foreclosure, it is a great initial step in the long awaited economic recovery.

Article Source: http://www.ezinefinance.com

125% Refinance Home Loans For Home Improvements

If you need to get finance for home improvements but your current mortgage has still a high balance, you need not worry. It is possible to obtain a refinance home loan with up to 125% funding value and use the extra money for financing your home improvement project without having to resort to other expensive sources of funds.

This cash-out refinance loans that can reach up to 125% of the market value of the property are made available due to the especially competitive circumstances that rule the current loan market. Thus, a good timing suggests that you need to make use of this situation and seize the benefits from the equity on your home by refinancing and getting extra cash with advantageous terms.

Cash Out Refinance Home Loans

A cash out refinance home loan is a loan that is awarded for a higher amount than your current outstanding mortgage and thus, only part of the money is used for repaying your current debt. The remaining loan amount can be used for any purpose but in this case, it must be used to finance a home improvement project. This last fact will be controlled by the bank or financial institution.

The concept is simple: If you have a mortgage loan of $60,000 and your property’s market value is $100,000. You can easily request a cash-out refinance home loan for $80,000 and use the remaining $20,000 for financing your home improvement project.

Moreover, even if you request a higher loan amount, if the market conditions have changed positively or your credit and financial situation have improved, you could obtain a refinance home loan with a lower interest rate and better loan conditions and save thousands of dollars worth of interests over the whole life of the loan.

125% Financing And Home Improvements

Usually, there is an 85% limit as to the amount of money you can request through a home loan, especially if you have bad credit. Occasionally you can obtain 100% financing for loans made for first time home buyers or for those with a very good credit history. However, lately, lenders are offering further financing. You may wonder how more than 100% financing is possible:

The answer to that question is rather simple. Since the money borrowed will be used for home improvements, the lender is counting on an increase in the market value of the property used as collateral that can compensate the surplus. Besides, even if the raise in the market price of the property doesn’t compensate for the difference, within a short period of time and due to the continuous monthly payments, the mortgage balance would get below 100%.

Bear in mind though, that the money must be used for financing home improvements and most banks and financial institutions will check any home improvement project you may have so as to make sure that you are not faking the purpose. You may be required to present documentation prepared by an architect or another professional and other backing up documentation in order to confirm that the money will be actually used for what you claim it will be used.

Article Source: http://ezine-articles-planet.com

Should I Refinance My Mortgage?

Rates are at their lowest and government is thinking of even lowering rates to 4.5%. Currently 30 year fixed stand at 5.09%, so should I refinance?

The answer is yes. What makes the difference is your credit score. Even with 700 billion bailout help banks are not doing their best to help all customers who wants to refinance. Only good credit customers can take advantage of low rates.

So let’s look at the future for a while. As of this week 30 year fixed mortgage rates are at their lowest levels and in some states mortgage brokers reported as low as 4.875% interest rates. As long as you have an equity and good credit score you are able to take advantage of this rate.

What may happen next might shock you. These rates may not last too long! Because government extended its hand to banks, someone needs to pay back that 700 billion loan. Government approached this by buying a stocks from these banks in order to give them financing. Banks should eventually increase their equity, make money and their stocks should move upward. That is the goal so far.

In order to show profits, banks need to reduce their expenses and other costs to generate revenue. In order to do that, first they need to fix their guidelines. And guidelines comes to only give loans or mortgage to consumers who actually are able to repay them. This limits on who may get that next loan.

Once a new loan or mortgage is provided to a consumer, these loans are packaged together and sold to Wall Street.

At the same time banks need to make money on these loans and mortgages. That is why they charge interest rates. With low interest rates, banks make lower profit and eventually banks will be leveling off and increasing these interest rates to bring higher profits.

Next, is your credit. Yes, your credit as banks rely on credit heavily at this time. Any slight difference in your credit card balance or any loans you might have, can turn against you later on.

If you keep waiting for the next lower rate, you may be out of luck. Let’s look at the idea from government to propose mortgage rates at 4.5%.

A great idea for anyone to have 30 year fixed at 4.5%, but again banks profit is shrinking. In order to make this happen, what government may do is to offer this rate only to new homebuyers. The advantage of this low rate is that more and more buyers will come to market and purchase already discounted homes with even better interest rate and thus increasing property values.

Fixing real estate market is the key to recovery. If banks will offer this rate to any home buyer, they will have to raise their fees. If their fees are higher, you will be getting the same deal today.

So far there is no positive news when this new 4.5% interest rate may come, however; low rates are here today and you should not wait for another opportunity like this.

Article Source: http://www.exchange-articles.info

Comparison Shopping When Re-Financing

Homeowners who are re-financing their home for the first or even the second or third time should thoroughly research all of the available options to ensure the best possible interest rate and terms are secured. Homeowners are sometimes lazy when it comes to re-financing. There may a large drop in interest rates or a change in the financial situation which warrants a re-finance. Although the homeowner may be aware that a re-finance is warranted, the homeowner may not be aware that it sometimes takes a great deal of work to find the best possible rates and terms.

Homeowners are often inclined to re-finance with the same lender who granted the original mortgage or with the same lender who handled prior re-finances. The theory behind this reasoning is along the same lines as, If it aint broke, dont fix it. These homeowners figure their current mortgage is adequate and they are happy with the current lender so there is no need to investigate further options. However, this cavalier attitude can be quite costly for the homeowners.

Try All the Options

Homeowners who are considering re-financing their home should contact a number of lenders and obtain rate quotes from each of them. When soliciting quotes the homeowners should consider all of their available options but should limit these options to established lender. While a newer lender may be offering fantastic rates and loan terms it is considered quite risky to go with this type of lender as opposed to a more established lender.

Homeowners who wish to further investigate smaller lenders who do not have an established history should proceed with caution. Unless the lender has trusted friends or family members who are willing to vouch for the lender, the homeowner should investigate these smaller lenders carefully. Visiting a website address is not the best way to ensure credibility. Designing a professional looking website is a fairly simple process. Most website designers could design and upload such a website in less than a day.

Friendly Competition

When comparison shopping for the most favorable rates, homeowners should make it well known that they are shopping around for rate quotes and are not making a decision immediately. Lenders who know they have some competition may be more likely to offer a lower interest rate than they would if they did not think the homeowner was considering other options. Although this may not seem quite fair to the lender, the business of re-financing is a competitive business. Just like a plumber might offer his most competitive rate if he knows the homeowner is seeking estimates from a number of different plumbers, lenders are apt to do the same. They make their money from homeowners and having a homeowner re-finance their mortgage does not help them out at all financially.

Some lenders may think the homeowner is bluffing and may not offer the best rate initially. However, if the homeowner rejects the offer and states they have a better offer with another lender, the first lender may be enticed to offer an even lower interest rate just to see if they can sway the homeowners. While cost is certainly important, it is not the only factor to consider. Some homeowners might re-finance with a lender who offers slightly higher rates if the homeowner feels as though this lender is more responsive to his needs.

Article Source: http://www.entirearticle.com