Search
Recommended Sites
Related Links






   

Informative Articles

Adjustable vs Fixed Rate Mortgages
Mortgage rates can either be fixed for the duration of your loan or can be adjustable. An adjustable rate mortgage is a loan that is set up with an interest rate that changes based on pre-determined criteria, primarily tied to the federal interest...

Arm Loans & Avoiding PMI
Understanding ARM loans, and how to avoid PMI. ARM stands for Adjustable Rate Mortgage. There are various types of ARM products with the most common being the 1/1, 3/3, 5/1 and 7/1 ARM. The first number tells you the length of time the...

IS A HOUSING BUBBLE BREWING?
In the 1990s, dot-com mania swept the nation, and swelling investment portfolios were the toast of the town. The real estate market is surely today's version of that hot topic (Internet searches for "housing bubble" turn up almost one million hits)....

Refinancing Your House - How To Know Whether To Refinance Or Get A Second Mortgage
Refinancing your house's mortgage is not the same thing as getting a second mortgage. While both allow you to cash out your home's equity, terms and rates differ between the two types of loans. To know which financing option is best for you, learn...

Show Me the Money: Mortgage Programs for Financially Challenged Home Buyers
The purchase of a home is a dream for millions of people. This dream may be a symbol of the success they plan to achieve or a symbol of the security they hope to provide for their family. Unfortunately, issues of bad credit, no credit, no savings or...

 
How to Refinance Your Home


Refinance Your Home - There are several reasons why you should consider
a refinance mortgage on your home loan. When you refinance your home, you can
cut your monthly mortgage payments. In addition, you can tap into your equity,
or your home value, in order to pay off other loans and credit cards. This in
turn helps you to deduct your mortgage interest from your taxes.



How to Refinance Your Home



Now that you know the benefits with home refinance, let us now go to the
steps. The first thing you need to consider when you refinance your home is the
current trend in interest rates. Most major Sunday newspapers feature this type
of information in their real estate section. Find out the current interest
rates from local dailies or online quotes. You can also contact a mortgage
broker and speak with a real person about your home refinance questions.



If this is not your first attempt at getting financing for your home,
then you probably known that there are actually several types of loans. The
second step therefore is to identify the type of mortgage you want - whether it
is fixed, adjustable, or a combination of the two. Remember that each type may
mean a different set of advantages and disadvantages for your home refinance
venture.



The third step is comparison shopping. Compare the new interest rates to
that of your current mortgage. To do this, find out what possible monthly
payments are being spoken of with your new loan.



You can use the amount you owe on the loan to calculate what the new
monthly payment would be by using a financial calculator or an online mortgage
calculator. You'll also need to know the new loan amount (current loan amount
plus closing costs, such as points, title and escrow fees - unless you plan to
pay for them out of your pocket - the new interest rate, and the number of
months of the new loan).



To find out how much you can save with your home refinance mortgage,
subtract your current monthly mortgage payment from the new monthly mortgage
payment. The remaining balance is your monthly savings.



After you get the figure for your savings, divide it into the total cost
of the loan, which includes points, title, and escrow fees. The resulting
figure is the number of months it will take for you to recoup your investment.



Then finally, determine how long you plan to stay in your home. If you
plan to live in your home longer than it will take to recoup your investment,
then to refinance your home is probably a good idea.


Tony Forster has a keen interest in living debt free having been "up to his ears" before realizing the need to take control. He has compiled an online financial article resource at http://www.loan4payday.info