Home Loans and Home Refinance Options

Many different mortgage products make for a diversity of home loan and home refinance options. For you as a consumer faced with making this important life decision, it helps to know what the basic options are so that you can evaluate which product suits your needs most closely.

Options In Home Loans

The available home loan products are basically the same as the options in refinance home loans. Whether for a first mortgage or third refinancing, the interest rates and terms that are offered stay the same. The factors that determine your offer are the same, too, including

• Loan to home value (in the case of refinance mortgage rates and terms, the equity available in your home)
• Credit score and history
• Debt to income ratios
• Income

Based on these factors, you will be offered different mortgage products with varying rates and terms. These are outlined following.

Fixed Rate Home Loans And Refinance Home Loans

Fixed rate home loans and refinance home loans have one interest rate that stays the same and never changes for the life of the loan; that is, until the loan is either repaid or refinanced into a different loan. Fixed rate mortgage rates and refinance mortgage rates are generally a little higher than the introductory rate on an adjustable rate loan, but are far more stable and predictable, and still reasonably based on current rates. Fixed rate loans are the most common and secure types of loans, and are usually recommended for people who plan to be in their home for some time.

The major difference in fixed rate refinance and home loans is the term; the loan will usually be either 15 or 30 years, although there are also some 10 and 20 year options and some newer 40 year fixed rate mortgage terms coming on the market.

Adjustable Rate Loans And Home Refinance Options

An adjustable rate loan is another of the home mortgage and home refinance options. This type of loan has a fixed rate for just a limited amount of time—normally one, three, or five years. After that fixed rate expires, the rate adjusts according to the schedule set forth in the original mortgage (for example, every six or twelve months). The new rate is determined by the current mortgage rate market; it could be higher or lower.

Adjustable rate refinance mortgage rates are less appealing because they are less stable. When corrections are made, the mortgage payment may increase significantly. The mortgage payment is only predictable during the fixed-rate term.

Although less secure than fixed rate mortgages, there are good reasons to use an adjustable rate mortgage, or ARM. ARM's are cheaper during the adjustable period, and so can be more affordable if you do not plan to stay in your home for a long period of time. ARM's also give you time to enjoy a low payment while you build your credit rating to qualify for a better fixed rate mortgage.

Evaluating Your Mortgage And Home Refinancing Value

The only real way to evaluate your mortgage and home refinancing value is to talk to reputable lenders, get quotes, and compare them against your budget and future plans. There is no right or wrong mortgage product, as all situations are different. Find a trustworthy lender and she will help you determine what the loan and home refinancing value really is for you given the options that are open to you.

Nationwide Home Loan Options

One thing you should know before you choose that lender is that you have a whole nation of products and options at your disposal. With modern technology, you can just as easily take advantage of the great rates a Colorado refinance loan offers as any other. If you do your research and find that that Colorado refinance loan is most beneficial, and that you feel most secure with that lender, then by all means that is the lender and product you should choose. Location is no indication of where the best mortgage and refinance mortgage rates will be.

Article Source: http://www.articlesbase.com/mortgage-articles/home-loans-and-home-refinance-options-401807.html

About the Author:
This article is provided by Access National Mortgage, based in Denver Colorado. Access National Mortgage provides progressive and superior financial solutions like a New Mexico FHA Loan Application, a Wyoming FHA Mortgage Calculator, debt consolidation loans, information about California FHA refinance benefits and whole host of other mortgage products all across the United States.

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How to Avoid the 10 Top Home Refinance Mistakes

If you are considering a home refinance there are some things you should be aware that should be avoided. Here are the 10 top mistakes people make when refinancing a home:Drawing On Your Home Credit Line Before Doing A Home Refinance

Many lenders have “cash out” waiting requirements or “seasoning” as it is referred to in the industry. That means they want to see a set period of time elapse once you have withdrawn equity from your home prior to issuing a new loan. Cash-out followed by refinancing may indicate a pattern of irresponsible credit use; a red flag for a lender. This could lead to stricter requirements and possibly a rejection of your loan. The typical waiting requirement is six months.

Taking On A Second Mortgage Before Refinancing On Your First Mortgage
A lot of mortgage companies look at the combined loan amounts (i.e., the sum of the first and second loans) even when you’re only doing a home refinancing your first mortgage. Don’t be surprised if your first mortgage lender requires you to pay off both your first and second mortgages. Check with your lender to see if having a second loan will impact your refinancing.
In some instances lenders may allow you to keep your existing second mortgage while refinancing only the first. This is done by obtaining a “subordination agreement” from the lender who provided you with your second mortgage.

Paying For An Appraisal When You Think The Appraised Value May Be Too Low
Don’t pay for a formal appraisal if you think the home has a low appraised value. Home value is determined by many things, including the home’s location. Both lenders and Realtors use a market analysis based on the value of homes in your area to determine value. Paying for an appraisal shouldn’t be necessary.

Their comparable rate comparison should allow them to determine if your home is within the expected parameters of the financing you have requested. Especially in today’s market where home prices have stabilized or even declined a little, it pays to save your hard earned cash.
Not Doing A Break Even Analysis
Evaluate the money you will spend in getting the home refinance loan to determine if it is cost effective. It’s important to compare the total loan costs with how much you will save each month by lowering your monthly payment. Very simply, just divide the transaction costs by your anticipated monthly savings to figure the number of months you will have to stay in the loan to recoup your refinancing costs.

For example, if the costs of the home refinance total $2,000, and your monthly savings are $50, your break-even point is 2,000/50 = 40 months. In this case you should only refinance if you plan to stay with this new financing for at least 40 months.

Failing To Choose The Best Home Refinance Loan
There is more than one home refinance loan out there. There are fixed-rate loans, adjustable rate refinance loans, etc. While we at 1-800BadCredit don’t recommend the adjustable rate mortgages (ARM), there are people who insist on them. The loan that is best for you depends on your situation. We don’t recommend them because many people have been caught in a squeeze situation with ARM loans and have been unable to qualify to refinance.
For example, in some cases a 15-year term is better than a 30-year term and vise-versa. Think about your long and short term goals before you refinance and choose the loan program that fits those goals best.

Paying Too Much For Mortgage Insurance
Mortgage insurance, or PMI, is what you pay on your home in case you default on your mortgage. PMI adds a lot to your mortgage payment, but you don’t have to pay PMI if you have an 80% equity stake in your home. If you refinance at less than 80% then you could wind up paying too much for PMI.

Using Your Current Lender When Doing A Home Refinance
Although you may have an excellent history with your current lender, you may not always get the best deal when considering a home refinance. That’s the reason why we give you so many choices.

Your original lender will need the same documentation as any other lender. Each time you refinance your financial picture has to be re-verified. You will be subject to re-qualification, even if you have developed a relationship with your lender. So you might as well shop around and get a couple quotes just to make sure you’re getting the best rates and fees.

Not Getting A Good Faith Estimate
You always want a written Good Faith Estimate (GFE) when securing a home refinance loan. Within three working days after receipt of your completed loan application, your mortgage company is required to provide you with a written GFE of closing costs. However don’t make the mistake of shopping for your mortgage via a simple GFE.

In fact, if the GFE has a substantial portion of the fees marked zero may be a warning sign that not all fees are being disclosed up front. Be sure to ask if all the fees are accurately reflected on the document.

NOTE: if you are considering a “no cost” home refinance many of the fees may be blank. Be sure to ask.

Not Getting Your Rate Lock In Writing
Know the length of time the rate lock is in effect and check all particulars, such as APR, closing costs and any other fees that are listed. A loan officer can tell you verbally that the rate is a certain amount and the interest rate can change radically within the next few hours based on the economic rates that are always in flux. When a mortgage company tells you they will give you the home refinance loan for a certain amount, get a written statement to that effect, the length of time it’s guaranteed and any other particulars about the loan. This information is readily available by a Rate Lock Commitment. Request a copy for your records.

Signing Documents Without Reading Them
Never sign documents in a hurry. And don’t expect to read them at the time of signing. Sitting in front of the escrow company’s desk having form after form thrust at you for signing is intimidating and can make reading them thoroughly difficult.
As soon as possible, request a copy of the home refinance loan documents in order to review what you will be signing at the close of escrow. This way you can read them at your leisure and get any questions answered ahead of time.
Make sure you understand what you are signing! Don’t be afraid to ask questions because you are entering into a long-term relationship. Be sure to bring your Good Faith Estimate when you go to sign the final papers.

Article Source: http://www.articlesbase.com/home-and-family-articles/how-to-avoid-the-10-top-home-refinance-mistakes-232861.html

About the Author:
Reference: Advantage Mortgage; National Federation of Realtors; Harris-Rush
http://www.1-800BadCredit.com provides up-to-date information for people
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Is Now The Perfect Time For Refinancing Home Loan

Refinancing home loan simply means that you shall take a new mortgage and pay by that away your present home loan. And because loan refinancing includes several terms, you should first set targets for refinancing home loan, what are you after?

1. Why Should Refinancing Home Loan Be Good For You?
Refinancing home can bring you big benefits. You can save money in your monthly payments or you can save by fastening the back payments. Or you can build home equity quicker and use the savings to be able to consolidate your debts.

2. How Can I Determine Which Home Loan Is Good For Me?
Refinancing home loan is not to just get the lowest interest rate, it is much more. Loan refinancing can be a tricky job. Refinancing can be a complicated decision and it is important to ask several offers from different companies and compare those against your own targets.

3. Think Some Questions, Before You Start The Refinancing Process.
The starting point could be to get an estimate of your homes present value, what are the prices for the same kind of homes in your area. You can get this information quite easily from the Net or from the local newspaper.

Then you can review your current credit report online and make sure that all information is correct and up to date. You could also collect all the documents concerning your present mortgage loan and also the tax documents.

4. Is Closing Price Reasonable For Me?
This is the good question, because refinancing home loan does not only mean the terms of the new loan versus the old one. Usually refinancing has the same kind of closing costs than your present home loan.

To be able to compare different offers from different refinance lenders, you better ask The Good Faith Estimate, because that makes it easy to compare offers line by line and forces the companies to give all the needed information. Normally you will get this in three business days.

It is also normal that the closing costs are included in the loan sum, so you do not necessarily see them separately.

5. Can You Save Refinancing Home Loan With Your Present Lender?
Not necessarily, because when you refinance your mortgage the process has certain costs with all lenders. The expenses of refinancing home loan must be paid, whether you use your present lender or will get a better offer,the expenses of the appraiser, title company and closing agent.

So the most important thing is the get the best terms for yourself.

About the Author: Juhani Tontti, B.Sc.,Econ.Home Loan Can Become Your Major Source Of New Income. Refinancing Home Loan Is Wise In This Economic Situation. Visit: LowerMortgageRefinanceRates.com

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Rebuilding Your Credit Rating

If you fall into the poor credit category that increasing numbers of US citizens are finding themselves in then try not to worry as there are ways that you can still obtain credit cards and loans to help repair your credit rating. If you have a low credit score, you will have the slightest chance of getting a loan however, if you want to rebuild your credit rating you need to have a loan or existing ones but you are more likely to be declined with. It is possible to obtain loans with poor credit scores but the penalty paid by the applicants is a variety of fees and conditions plus of course a higher interest rate.

There are many factors involved if you take this course of action so it is important to check just how much will have to be repaid using the annual percentage rate plus the fees and whether security is required. You should be aware that with the help of the Internet, you can always find consumer websites that specializes in facilitating poor credit loans with the motive of finding you the best deals and terms as well as the right firm to help you ease the troubles away. This is also one of preventing your credit score from getting worse since your application will directly be recorded every time you do so as per time frame will somehow lower your credit score. Being decisive in this case is greatly recommended because if you tend to frequently change your mind upon choosing the company to make applications for a loan then you will just end up putting yourself into a more complicated situation or even worst.

One of the best ways to rebuild a poor credit rating is the use of a credit card as transactions and payments are reported frequently to agencies that monitor and help rebuild credit scores. It is more likely for credit card issuers to set their own terms and guidelines especially when it comes to issuing them to somebody who has a poor credit history therefore to be able to find the best deals for you, you should take part in finding and choosing from among the companies offering such so you will need to find the one with the best terms and conditions plus the lowest interest rate available. Some credit cards have a high income level for applicants so be careful before you apply for a credit card which requires a higher income than you receive as it will be wasted and will go against your credit score.Normally, once you have used your credit card in a responsible manner for a while, the finance company will raise your credit limit but you should refuse this as it could just put further temptation in your way.

Despite the fact that some may need the money for important remodelling work, qualifying for a home loan can be that hard as it is also another good way to improve a credit score but they can consider applying for somebody who could do more helping them such as a loan from a bad credit mortgage lender. When considering a mortgage, remember that you must factor in many things and not just a particular interest rate as there may be other charges on an annual basis as well as any penalties that can be incurred. Do not despair because no matter how bad your financial situation is there are still options available to you in the form of bad credit loans, credit cards and sometimes it is even possible to get an auto loan in these circumstances. A professional debt counsellor is able to provide advices and comprehensive information regarding debt management especially for people who are in serious debt and having trouble making monthly repayments and getting a debt consolidation loan as an option is their probable suggestion so for you to effectively find your way towards repairing your credit you should seek them.

About the Author
Article by
Suta at: http://financecure.blogspot.com/

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Refinance Home Loan - House Refinancing Do's and Don'ts Tips

Once you've made the decision to refinance home loan on your property, there are still some things that you should be aware of before signing on the dotted line. These simple steps can help save hundreds or even thousands on the final house refinancing loan that you obtain. Most of these tips are common sense ideas that apply to many financial transactions, but extra caution is appropriate when you are dealing with what too many borrowers may be one of the largest financial deals of the lifetime. The refinance in some instances is larger than the original mortgage loan on the home.

Do: Read the fine print
When you want to refinance home loan, just as with any loan, you should make certain that you read and understand the impact of the fine print in the loan documents. If you didn't realize that you have agreed that the lender can adjust the mortgage upward after two years to match the price index, you could lose your home. If you are agreeing to a balloon payment and refinance yet again in 3 years, make certain that you know about it up front, not after the papers are signed or worse yet, when the balloon payment is due.

Do: Shop for the best rates
When you are looking to house refinancing loan, don't assume that every lender will have the same rates and costs associated with those rates. It is important to look at the entire package. One lender may have lower rates, but require a balloon payment in six months or two years. Another lender may charge points or added closing costs to obtain the loan. You may not qualify for some programs when you apply at a lender. It is important though, that you don't apply at numerous lenders at the same time, as this can work against you with bad marks on your credit score.

Don't: Borrow more than you can afford
Especially in times of uncertain economy, getting a loan with variable or adjustable rates because you want a larger house or a better location is not a smart move. The same thing is true when you refinance home loan. Don't borrow extra money, just because you can, thinking you will put it back for an emergency. Borrow only what you need with a goal of paying off debt rather than incurring new debt especially if you have nothing to show for the loan later.

Don't: ignore the fees and closing costs
To refinance home loan can be a daunting process. It is important that you understand your obligations and benefits at each step of the process. Many borrowers are surprised when they find out how much obtaining the housing refinancing loan is costing them and that is before considering the cost of interest on the loan. Fees such as title insurance, document preparation, points, loan origination fees and other costs will inflate the cost of the loan significantly. Don't spend the proceeds of cash out on your home loan until you have determined without a doubt what the proceeds will be.

About the Author: Before you decide to Refinance Home Loan, it will be worth your time to visit the link at House Refinancing for more financial expert advise and additional information.

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Tips On Choosing The Right Home Loan Rate

Obtaining a home loan is one of the most important activities of the modern individual of today. And in getting such loan to succeed, he also needs to obtain helpful information on the home loan rate. Still many people seem indifferent if not intimidated when hearing the phrase home loan rate because it is obviously connected to activities that require spending money. Such intimidation stems from the fact that people have little knowledge about the topic. And if only they get more enlightened about the term, it can even help them in getting better loan terms and beneficial home loan as a whole.

Types of home loan interest rates

There are two important types of home loans according to interest rates that are available for those who plan on borrowing money to purchase their dream home.

1. The first type is the fixed rate home loan, in which the rates and the dues every month are extended on a fixed duration of time, from 15 to 30 years.

2. The second type is the adjustable rate loan, wherein the rates fluctuate, going up or down according to the current market rates.

Fixed Home Loan Rate
The fixed rate home loans are normally the more popular of the two interest rates schemes among the borrowers. Fixed rate home loans are actually more in demand because most people are very much aware of the current situation on the market today wherein payment go up or fall down easily and without any warning, all because of the changing rates of interests. This is why people gravitate heavily towards fixed rate home loans especially when the offered interest rates at that time are low, making the loans very attractive to them.

Loans with fixed rates are usually divided into two: the fixed 15 year home loan and the fixed 30 year home loan. Some people tend to find the 30 year as more reasonable and beneficial of the two. This is because the longer the duration of payment, the lesser amount is to be paid every month. However, the disadvantage of the 30 year fixed rate home loan is that people will be paying more in interest rates by the end of the loan.

Adjustable Home Loan Rate
On the other hand, in spite of the varying interest rates, there are prospective borrowers who would rather get an adjustable rate home loan. This is because the fluctuating rates are not actually as bad as they seem to be. An adjustable rate home loan actually starts with fixed interest rate for a longer period and followed by shorter period of adjustable rates.

What is beneficial about home loans with adjustable rate is that the fixed rates during the starting period are lower than that of fixed rate loans. And this initial period of the fixed rate loan part of the loan is much longer than that of the adjustable rate loan. For example, the fixed-rate loan term’s initial period can be as long as 10 years. On the other hand, adjustable rate loan will be for just a year. Obviously people get more benefit with adjustable rate home loan.

About the Author: Visit the web site located
http://www.homemortgageloan-refinance.com/Fixed-or-Adjustable-Home-Loan-Rate--and-%238211%3B-Factors-To-Consider-When-Choosing-One.php for the best information about common Home Loan Rate or Home Loan types such as fixed rate and adjustable rate mortgages.

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Home Refinancing at Ease by Sun Refinance

While most people do not want to refinance their home, there are occasions where it makes sense, but all other avenues should be explored first. There are situations where it makes sense and is the best move forward but that does not mean that you shouldn’t try for the best deal available.

Typically home refinancing is done when you have a mortgage on your home and apply for a second loan to pay off the first one. While taking the decision to go for the home refinancing option, it is important to first determine whether the amount you save on interests balances the amount of fees payable during refinancing.

Cash-out refinancing leaves you with additional cash above the amount needed to pay off your existing mortgage, closing costs, points and any mortgage liens. You may use the additional cash for any purpose.

A house is the largest asset you may ever own. Likewise, your mortgage payment may be the largest expense you'll have in your monthly budget. Wouldn't it be great to use this asset to reduce your monthly payment and put extra cash in your pocket? When you refinance your mortgage, you can take advantage of the equity in your home and enable this to take place.

Another advantage of home refinancing is that you can shorten the term of your mortgage. Let's say, for example, that you originally had a 30-year mortgage and have been paying it for eight years. Thanks to mortgage refinancing, you can switch to a shorter term of either 10, 15 or 20 years. This can save you thousands of dollars of interest. Also, if the refinance rate is lower, but you maintain the same monthly payment, you will build up equity in your home more quickly, because more of your payment will be going towards principal.

Finally, homeowners can do all of their paperwork online and this is a very convenient point on the list of reasons why being able to refinance online is a great new tool. Most people today are just too busy to spend the time looking for a lender and then taking more time out to arrange the refinancing. Of course you will have to visit the lender at some stage to sign the refinancing home loan agreement but all the other laborious tasks have been completed from home. In some cases everything can be done over the internet so that the homeowner doesn’t have to visit a lender at all, which is in fact, becoming more of the norm for those who turn to the internet for refinancing.

About the Author
To get
Mortgage Refinance in California has become fairly simple. There are many lenders that can meet your requirements. However while taking Debt Consolidation in California has become easier because it will lower down your interest rate and provided at affordable rates.

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