American Wide Loans is the nationwide mortgage company that provides the best affordable home loans for all types of customers and credit. If you want a fixed, adjustable rate mortgage, purchase a home or consolidate debt, we have the loan for you.
Time to Refinance?
It doesn't make sense refinancing when you shouldn't. So, check out the mortgage refinance tips as given below and get an idea on when to refinance. Build up equity: It is feasible to go for a refinance when you have built up at least 10% equity in your home(For Fannie Mae owned mortgages, the value is 5%). You can also choose the option if you are below 5%, but the programs are not that diverse. Check if current market rates are low: It's better to follow the 1% Rule which suggests that you can enjoy the benefits of a home refinance if you get an interest rate 1% lower than that on your current loan. The interest savings will help you recoup the costs you've paid for the new loan provided you stay in the property for a certain period of time (break-even period).
Also, you can have a no-cost loan done where the costs are put into the loan. But you can expect comparatively higher rates on such loans. Moreover, these loans are limited when the market is in a credit crunch. Pay off any late payment: There is no such limit on the number of times you can go for home refinance loans. Most lenders prefer that you have no late payment for the past 12 months before you switch over to a new loan. Remove negatives and improve credit score: Pull your credit report from the bureaus and review it for any negative items (late pays, collections etc) and inaccurate detail. Try to dispute negative items and remove them from the report. If required pay off any unpaid debt. Otherwise, you won't get a low rate and may not even qualify. Of course there are lenders in the subprime market who may offer you a bad credit refinance loan, but it's better to avoid them as they'll possible charge higher rates and fees.
Now is the time to do a FHA Refinance!!
FHA home mortgages are not just for first-time home buyers. FHA refinance loans can help people get out of toxic debt situations caused by sub-prime mortgages with interest rates that have spiraled out of control. There are different ways to get into an FHA refinance loan.
The advantages include a low fixed rate mortgage guaranteed by the FHA, predictable FHA mortgage payments and lower interest rates for those who qualify. The FHA also has the cash-out option to refinance and credit cards or major improvements on your home. You may qualify for one of two FHA mortgage plans which offer cash-out plan. FHA refinancing loan offers amounts up to 85% of the appraised value.
FHA refinance mortgages require copies of tax returns to verify money you report to the government. If your job situation has changed since your last tax filing, you may be able to furnish proof of income through your new employer.
Now is the time to do a VA Refinance!!
Important factors to keep in mind about your Cash-out VA Refinance include:A cash-out VA refinancing loan is a VA guaranteed loan which refinances any type of lien or liens against the secured property. The liens to be paid off may be current or delinquent, and from any source. (tax or judgement liens, VA Refinance, FHA, or conventional mortgages). Income, credit and your home value will be used to qualify you for the loan.. Loan proceeds beyond the amount needed to pay off the liens may be taken as cash by the borrower for any purpose acceptable to the lender. Cash-out VA refinance loans can be for up to 100% of the appraised value of the home. The loan must be secured by the first lien on the property.
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