Loans for Any Purpose!
-Get a Fixed Rate
-Get Cash from Your Home
a Good Idea?
Home Equity Loans
You can save a great deal of money by refinancing your mortgage.
The information below will help you decide if now is the best time
for you to refinance your home loan.
What is reason for refinancing?
- To achieve lower interest rates -
Interest rates are still very low. If you can lower your interest
rate by at least 2%, you should
refinance to save money and lower payments.
- To covert your loan into a better one - For example, if
you have an ARM (adjustable rate mortgage), you should consider a
fixed rate loan (FRM). A
fixed rate mortgage will allow you to
lock-in your interest rate for a long period of time. In addition, you
will likely reduce your monthly payment when you refinance to a
lower loan with a fixed rate.
- To eliminate having to make a balloon payment - It
is common for some mortgages to require a large payment at the
conclusion of the loan. You can avoid having to make this balloon
payment by refinancing your loan.
- To eliminate PMI (private mortgage insurance) payments -
If you borrow more than 80% of your home's value, you will have to
pay private mortgage insurance. If the value of your home has
increased, you can refinance and use the increased net value to
refinance and stop paying PMI.
- To get cash out of the equity from your home - You can
use the equity from your home to pay for a vacation, home
improvements, college, etc.. If the value of your home has
increased, you can get the extra amount in cash by refinancing.
more about cash-out refinancing. We also feature
tips on building equity.
- To consolidate debts - High interest credit cards and
loans can be consolidated into your mortgage when you refinance.
more about refinancing to consolidate debt.
** If you are unhappy with your home's assessment, you can learn
how to fight an assessment.
What is your current financial state?
- My finances and credit have improved - If
credit score and
rating have gotten better since when you first
applied for your mortgage, you can likelys reduce your interest rates
by refinancing. If your financial state has improved, i.e. reduced
or eliminated debt, increased income and/or savings, you can likely
achieve a lower interest rate by refinancing.
- My finances and credit have not changed - If this is the
case, it is less clear whether or not you will save money by
- My finances and credit have gotten worse - An inferior
credit score will likely mean you will not be able to qualify for a
lower interest rate.
Further educate yourself regarding
how your credit effects mortgages. Also, learn what you can do
rebuild your credit.
How much will it cost you to refinance?
refinance calculator will
help you figure out if refinancing
is a good idea. Even though lower
interest rate will result in lower payments, you need to consider
closing cost fees. If the money saved in monthly payments are
more than the closing costs, refinancing is smart decision.
Other reasons why refinancing would be a bad decision:
- Are you planning on moving? - It will
take about a year to pay off the
closing cost fees and to start
reaping the benefits of your new loan. If you are considering moving
before you can earn your money back, you need to think twice before
- Does your current loan have a pre-payment penalty? - It
is not uncommon for lenders to add a prepayment penalty to your
mortgage. These penalties are expensive and are usually enforced if
you sell or refinance your home within 1-5 years from the time your
mortgage has been in place.
- How much do you owe on your current home loan? - If you
are close to settling your mortgage, it will likely make more sense
to wait and pay-down your loan than to refinance. When you refinance,
you extend the term of your loan. This will result in you paying
much more in interest costs over the life of the new loan.
- Do you have financial issues? - Any type of
mortgage loan is
secured with your home. If you are looking to
refinance to consolidate debt, but you have financial problems,
refinancing may not be a good idea.
Dealing with financial issues is very hard, making it difficult for you to pay your mortgage, you can end
up losing your home to foreclosure. Learn what you can do to
help prevent foreclosure.
Apply now for a no obligation
refinance quote without having your credit checked!