Mortgage Refinance Resources

Mortgage Tips

2007-02-25T05:18:00.000-08:00

Financial challenges do occur at times in our lives and, sometimes, these difficulties may include getting behind on mortgage payments. The stress of trying to stay afloat financially can be debilitating. This can cause unclear thinking or even a "what's the use?" attitude. Indeed, it may be time to honestly consider whether saving the home is the best thing for your future. It may not be easy to make that decision, as many of us have an emotional attachment to our homes.

Let uss assume that you do want to keep the home.

Lack of a clear understanding of your options, when you are behind on your mortgage, can lead to more expense and even more struggles later. Be careful when considering the direction you take and the advice you heed. There are many mortgage turn around services offered to consumers that are at risk of losing their home. Many are good for the pocket book of the service provider, but not all that great for consumers.

You can be pro-active by contacting the loss mitigation division with your lender directly.

Here are some options you may want to seek with your lender and/or mortgage servicing agent:

Repayment plan - Your lender or mortgage servicing agent may consider you for one or more types of payment plans that will fit your budget and possibly bring your account current by the end of the plan.

Loan Modification - If you qualify, your lender or mortgage servicing agent may have this program that adds the delinquent interest, taxes and/or insurance payments to your unpaid balance. If you qualify, it may include extending the repayment of the past due amounts over the remaining term of your loan.

Check with your lender or mortgage servicing agent for other options besides those mentioned above. Lenders are not in business to own real estate. They lend money. If you can meet the criteria, they will happily assist you.

These are things you can do for yourself. In fact, these programs may provide families the opportunity to avoid bankruptcy as an option to save their home. Admittedly, Bankruptcy has its place and will be a good option for some, although, it too will have its own costs and draw backs that should be considered.

Since the mortgage payment is an expense that is a necessity of your families shelter needs, perhaps talking with your other creditors to defer their monthly payments, so you can get caught up with your mortgage may be a realistic approach. This option is more commonly known as restructuring your debt to income ratio with full concentration on your needs, i.e. shelter, utilities, food, transportation, basic clothing and medical.

If you are realizing hardships, do not wait until it is too late. Contact your lender or mortgage servicing agent immediately.

For more tips, read 8 Big Mortgage Mistakes and How to Avoid them.

Article Source: http://EzineArticles.com/?expert=Michael_Bovee

2007-02-20T21:45:00.000-08:00

Let's get started
Educate yourself. Get several quotes. Mortgage brokers will generally offer a better deal than a bank, but it doesn’t hurt to call a bank or two for comparison as well. A good loan originator will spend as much time with you on the phone as you need. And a truly professional loan originator will ask enough questions to understand your goals. If you don’t feel good about a conversation, trust your instinct; cross them off your list and move on.

Get everything in writing
Make sure to ask for Good Faith Estimates. There can be quite a few costs associated with getting a mortgage. You want to see every one. Comparing Good Faith Estimates can be challenging because different mortgage lenders often use different terminology. Don’t let that stop you. It’s also a good idea to ask the mortgage broker if there are any additional costs that are not shown on the estimate.

Ignore the APR
APR, or Annual Percentage Rate, was originally designed to help borrowers compare mortgages. I won’t go into the mathematics involved, but in principle APR was a good idea. In practice it has turned out to be useless. Lenders do not all use the same inclusion methods in calculating APR. To add to the confusion, adjustable rate mortgage calculations are notoriously misleading. But that’s okay! APR involves two variables, note rate, and closing costs, and all you need to see is on the Good Faith Estimate.

Points versus rate
I’ve been a Florida mortgage broker since 1989. My company is also licensed in Georgia, Massachusetts, and Virginia. We talk to lots of people about home financing. It’s my experience that when people are shopping for a mortgage they often fixate on the interest rate, and overlook the points. Interest rate and points are inversely related. Unless you specify that you don’t want to pay points a lender is likely to price your loan with one or two points. This will make your rate lower, but it may not be a better deal. If the lower rate saves you fifty dollars a month on your payment but you pay an extra five thousand dollars in points, it will take you eight years to catch up with the cost of the points. Do the math.

The margin trap
Many adjustable rate mortgage programs now offer a variety of margins for you to choose from. This means that you may have an opportunity to control your future interest rate. Sooner or later all adjustable rate mortgages adjust to an interest rate that is equal to an index plus the value of your margin. You have no control over the movement of the index. But if you can get a lower margin you will have a lower rate (once your loan starts adjusting) for as long as you have your loan. Your good faith estimates should all indicate the margin for your loan. Call the individual mortgage brokers and tell them you are interested in a lower margin. Don’t be shy. It’s your money!

Pre-payment penalties; Good and bad
As a Florida mortgage broker licensed in several states I discuss financing with many people every day. Most people are averse to considering a loan with a prepayment penalty. But it is worth looking into. Adding a prepayment penalty to your loan may reduce your interest rate significantly. Prepayment penalties typically expire after three years, but recently many lenders have started offering a choice of one, two, or three year penalties. Will you still be in the home past the expiration of the prepayment penalty? If you outlast the penalty you have reduced your monthly payment for as long as you have the loan. That can add up. And it didn’t cost a penny!

Choose wisely
There are an amazing number of mortgage programs to choose from these days. You can select a fixed or an adjustable rate mortgage. Or you might choose one of many hybrid fixed period adjustable programs designed to give the comfort of a fixed for a predetermined number of years before starting to adjust. Interest only options are available now on both fixed and adjustable rate programs. When selecting your mortgage program think about yourself. Any decision only makes sense if it makes sense in the context of your life.

Jim Kemish is the president and founder of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and serves the states of Florida, Georgia, Massachusetts, and Virginia. Jim is also the President of Sky Blue Credit, a national credit repair business.
Article Source: http://EzineArticles.com/?expert=Jim_Kemish

Home Loan Rewards - Are They Worth It?

2007-02-20T21:42:00.000-08:00

As a specialist in the Home Loans area in Australia I have been asked by a few clients recently about the range of "Special Offers" made by banks and lenders. Specifically, are they worth it?

First, banks may offer rate discounts of 0.7% or more depending on the amount you borrow. Usually the higher the loan amount, the greater the discount. Sometimes the offer is a little different, say 50 cents off a litre of petrol for a year.

My approach is simple, just work out the exact money savings to do the comparisons, don't just look at the rate or the offer itself. In other words, will I save money.

Here are some examples.

Say you are borrowing $300000 and the bank is offering a discount of 0.7% off the standard variable rate of 8.07%. This is offered as part of a “professional” package (all banks have their own name, but let’s use this generic name), that attracts an annual fee of $300. At face value this means you get a rate of 7.37%.

Now, how does this translate into actual cash flow?

The monthly repayment on $300000 at 7.37% over 30 years is $2071
Add monthly component of package fee $ 25
Total $2096

Compare this with a similar loan from another bank at a rate of 7.4%

The monthly repayment on $300000 at 7.4% over 30 years is $2077
Nil monthly charge $ 0
Total $2077

This means that the loan at 7.37% is more than the loan at 7.4%! Another vital point about this is that the loan amount actually lessens as you pay it off, but the yearly fee does not, and so, the loan actually gets more expensive as the years roll by.

This is something to be very careful of.

I should mention, however, that with higher loan amounts the comparison may change in favour of the “professional” package, so the figures need to be worked out accurately for every loan scenario.

Now, what about “cheap petrol”?

One popular offer at the moment is that you will save 50 cents a litre for a year. The actual website quotes that you could save $2080 over a full year. Subject to the following conditions: “Offer limited to 52 purchases over a 12 month period (maximum 4 per month except for December, March, June and August when a maximum of 5 purchases applies), up to a limit of 80 litres of fuel per individual purchase. Promotion applies to funded new money Standard Variable or Discount Variable loans of $150,000 or greater.”

The petrol deal applies to loans currently quoted at either 7.99% or 7.59%, ie the Standard Variable Rate or the Discount Variable Rate respectively. Let’s look at the best case scenario at 7.59%, and for the sake of comparison I will also assume there are no monthly fees.

Monthly repayments on $300,000 loan over 30 years at 7.59%: $2116.16
Monthly repayments on $300,000 loan over 30 years at 7.4%: $2077.14
Monthly cost of the free petrol: $ 39.02

On the strength of these figures it will take 4 and a half years until the cheaper loan starts to get ahead, so it looks like a reasonable deal, unless you don’t use enough petrol! The bottom line is this. Don’t just look at the rate or the money you might save. Do the figures accurately and compare apples with apples.

Michael is the owner of Home Loan Answers, the BEST site for Home Loan Information in Australia. You will also find great tips on how to get the best credit cards and personal loans plus an opportunity for you to get personally tailored information so you can choose the best deal to suit your circumstances.

Article Source: http://EzineArticles.com/?expert=Michael_Haydon

What Mortgage Options Are Available To A Homebuyer?

2007-02-20T21:32:00.000-08:00

Buying a home is something that most people look forward to. When it comes time to look at the various options that are available for mortgages, though, the questions start to arise. There are so many different options that it can definitely be confusing. Here are some brief descriptions that explain your different loan type products.

Every mortgage will fall under one of two general types - it will either be a fixed rate mortgage or an adjustable rate mortgage. Here are definitions of these two types.

Fixed Rate Mortgages
A fixed rate mortgage is one in which the interest and payment rate always stays the same. It does not matter what happens to the market - good or bad, your payment does not change. This is especially good when the market is changing or the economy is fluctuating.

Adjustable Rate Mortgages
An adjustable rate mortgage is one that changes periodically in order to reflect the economic conditions. Most people get these mortgages because it allows them to get a little bigger house than they could otherwise afford. These usually have a fixed rate portion for a few years first, then the rate changes regularly - could be monthly or yearly. This type of mortgage is the best when the economy is good, but could be very costly in times of adverse economies.
Among these two types of mortgages, there are different names that could come under either general type.

Balloon Mortgage
This type of fixed rate mortgage and is generally for 5 to 7 years. It does not fully amortize by the end of the term since it is usually refinanced for a 25 or 30-year mortgage. This option must be stated in the terms, though, so be sure it is in there, or you may be left without being able to refinance.

Jumbo Mortgage
Two of the largest loan agencies in the US - Fannie Mae and Freddie Mac, set ceilings on the amount of loans that they will give to a borrower for a home. Any mortgage requiring more than this is considered a jumbo mortgage. They may also be called a non-conforming mortgage.

Assumable Mortgages
An assumable mortgage is one that the new buyer of the house simply takes over without any refinancing. The terms that enable this kind of transfer must be in the contract when applied for, or it cannot qualify as an assumable mortgage. It will also require the lender’s permission and the new owner must qualify before being approved. Under some conditions, some of the terms may be changed, and closing costs will be involved. Taking over an assumable mortgage cold turn out to be very good for the buyer – especially if the interest rate is better than what the market is offering at the time. Both types, fixed rate or adjustable rate, can be assumable.

Interest Only Mortgages
While the title of this mortgage is more than a little deceiving, it is not what it seems. It would be more truthful to say interest first mortgage than anything. With this type of mortgage, the interest is paid first, leaving the principal untouched until the interest is paid. Generally, this means more is paid because the principal is not paid down at all. This would normally slowly reduce your interest. The difference could result in thousands of dollars more being paid over the lifetime of the mortgage.

Joe Kenny writes for the UK Loan Store, offering mortgage applications, visit them today for some great secured loan offers for that special purchase or even for home improvements.Visit today: http://www.ukpersonalloanstore.co.uk
Article Source: http://EzineArticles.com/?expert=Joseph_Kenny

Are you using your mortgage wisely to create wealth or are you a slave to it?

2006-05-09T22:31:00.000-07:00

Most people are unaware that their home is the most valuable tool available for creating wealth, yet for most it will be their biggest liability, and for a large number, a financial nightmare.
Contrary to most people's beliefs, the house you reside in and make regular mortgage payments on is in actual fact a liability. Yes, we've been told all our lives that it is an asset, and that is correct, but it's not your asset, it's the banks asset!

Until such times as you sell your house for a profit, or your house is generating an net income, above all costs including repayments, taxes, rates, maintenance and so on, it will be a liability to you.

The reason it's the banks asset, is simple. While you are making mortgage payments on your house, a very large chunk of those payments is interest, and this interest is the banks income. The average home loan recipient will eventually pay back around 3 times what they borrowed, after tax, so it doesn't take a rocket scientist to work out that the banks are making huge profits from your house. Therefore, your home is an asset to the bank, or for a better description, an income generating asset.

We are taught to go to school, get a good education and get a good job. We are also conditioned to believe what will make us happy. So for most of us this means, get married, buy a home, have children, buy cars and other material possessions, have a 2 to 4 week holiday once a year, and at the end of a 40 to 45 year period, we will be able to look back, reflect and say, well done, I have had a good life.

Unfortunately, there are several catches. To fund this sort of life, you need debt. We are also allowed to accumulate this debt at a record rate. We are not educated as to the implications of accruing this debt, and what's worse, all these things don't really make us happy. Being in debt, working several jobs, not seeing your children when you want and losing sleep don't make people happy. Then at the end of the whole journey, there is a 99% probability, you will not be able to fund your retirement, at least not to the lifestyle you were accustomed to.

So when you do finally retire, what are you going to say? Oh, I own my own home, so sacrificing my relationships, my health and my lifestyle was worth it. I should hope not! This biggest problem I see with this whole scenario is that we are teaching our own children to do the same thing. I could not fathom for even a second, wanting my own children to be a slave to money for their whole lives, only to pass that on to my grandchildren.

For the purposes of this article, there are several classes of home owner/buyer - The first home buyer looking to purchase their first home, the young family who have been making repayments for 1 to 10 years, the older family who are past the halfway mark of their term, and the retirees.
The first home buyer is for the most part, in a relatively neutral position. They are only looking to get into their own home, start a family and get stable employment. That's okay, but they need to ensure they are looking ahead, and this is where they are vulnerable. If allowed, they will be conditioned all too easily by the banks and the credit trap. Their first home loan is not the biggest problem, but it's what comes with it that is. They will get access to so much credit, and because of the instant gratification syndrome, they will amass too much debt, and either sell up or work harder. Either way, they are stung too early in their life, and already have the notion that life is tough.

We now move into the young family stage, where the debts are starting to rule their lives. Unwilling to admit defeat, the young family will try and find a solution, which in a lot of cases means getting second and even third jobs. The biggest problem here is that they haven't actually learned to change their spending habits. Sure, they may increase their repayments on their loans, and may even start putting some money away, but it will not last long because they still suffer from the instant gratification syndrome. Eventually, their expenses rise to meet their new income, and they end up exactly we're they started.

The solution then is to refinance their home loan and consolidate their debts, which almost feels like a fresh start. What they don't realize is that they have just increased the term of their home loan (meaning they really are starting again but with more debt) and the money they save from only having one repayment, will soon evaporate because they will find ways to spend it.
The third stage is the saddest in my view because it's when the effects of the debt trap have really taken their toll. The level of belief in people by this stage is at it's lowest since they were born, and it's also where things like depression, stress, the mid life crisis and even suicide are at their worst. You need to step back a bit and think of it like this -

If you could imagine a young couple with all the dreams in the world of having a family, traveling the world, having careers they love, and leaving a legacy to their children, all of a sudden reach the age of 40 plus, and realize they are no closer to their dreams than when they were twenty, they are going to start asking questions. Questions such as, "Is this all there is? I've worked so hard, I've tried to do everything right, I've sacrificed time and time again and I have nothing to show for it. I don't understand. What the hell am I here for? What have I been working all my life for?"

It's these sorts of questions and the feelings of emptiness and loneliness that cause the huge problems. The only answer's for some are to find ways to numb themselves or find ways to make it easy to just accept things the way they are. What other's will do is get into the refinance trap and refinance every two to three years, thinking they're getting a better deal, but in reality, extending their slavery to money and debt. The biggest problem here is that they are sold on interest rates and most never seem to take into account the actual cost over the life of the loan, and the ever increasing term of the loan.

The final group are the ones that have plodded on and made it to the end. There is a sense of achievement here, but it's soured by the fact that their situation will not get better and their age makes them feel that it's all too late. Over half of retirees will still owe money on their homes (most likely more than what they originally borrowed all those years ago), and will have less in savings to both service the debt and to maintain any sort of acceptable lifestyle.
A further, more disturbing statistic is that the average lifespan of retirees is only 2.5 years, and this is largely due to the fact they don't feel they have any purpose in life anymore. They have finished work, and because they lack any serious funds, they have no way of pursuing their life long dreams. Their lack of a reason to get up in the morning literally saps their life energies away.

So let us say you have made it to the last stage, once you have paid off your home (most people take more than 30 years to do this because they are forever refinancing), you are left with a property that actually still incurs expenses. These expenses include rates, taxes and maintenance. Therefore, it is still a liability, and most people just don't understand this. The only way to turn this liability into an asset, is to either sell it for a profit (assuming the profit is larger than the interest cost of the loan) or to create a cash flow from it.

The first way of turning your home into an asset by selling it, makes logical sense to a lot of people because it just a case of simple mathematics, but it's the emotional aspect of not wanting to part with the home that prevents people from taking such action, until they find themselves in a financial position that forces them to sell. This creates a trap for a lot of retirees who sit on a house with a whole heap of equity, but have no cash flow coming in to support their lifestyles.
The final blow comes with an evil trick the financial institutions are now playing, and these are called seniors loans or reverse mortgages. A retiree can borrow a portion of the equity in their home, without the obligation of having to pay it back while they live in the home. When they sell, they then pay the loan back, but in the meantime, the loan is growing in size due to interest and fees.

The obvious problem here is that at some point in time, there is every chance there will be no equity left because the loan will always be growing. Once this happens, the retirees have lost there home to the bank. The other problem is because they believe they are entitled to enjoy their retirement (and I don't blame them!), they are more than likely going to spend the money on lifestyle and enjoyment, rather than just living. This will evaporate the equity at a record pace, resulting in selling their home to get the rest of the equity.

The final blow comes when the inevitable happens and they die. If they still owe any money, the banks will still get the whole house. It's as simple as that!

Now, I've probably depressed a whole lot of you here and that was my intention. When I read statistics such as - '99% of people living in western world will retire being dependant on someone else', it makes me angry. All of us living in the western world are living in the richest countries in the world and yet we can't even look after ourselves. We take advice from the institutions who make all the rules and ultimately control most of the money.

Both sides of globe are controlling, whether it be communism or the western banks and governments, but one thing we have in our favor is the ability to have free will and control our own destiny. Whether this has caused apathy among us is unknown, but I'd be willing to accept that we have had it to easy for too long and are now paying the price. We need to wake up and take control of our finances and ultimately our health and relationships.
So how do we change our finances?

First of all, you need to get a little education. If you can understand how this whole system works, then you put yourself in a better situation to do something about it. Education is an ongoing process and you need to accept you will have many years of conditioning to undo. The best part of it is that it doesn't take as long as you may think. Once you can understand some simple basics, you can change your life from one of being a slave to money, to one of being a master of money, ultimately creating financial freedom.

I'm not talking about becoming stinking rich here, but if that's your wish then go for it, I'll be your biggest fan. I'm talking about becoming self sufficient so that you live to work, not work to live and that you are not dependant on a job or pension for your main source of income. It is not as complex as some may think, as creating wealth is very simple, but it is not easy, and this is simply because the biggest changes come from within all of us, not only individually, but also collectively.

Contrary to people's beliefs, most millionaires live next door all of us. They drive second hand cars, live in standard houses and don't spend needlessly. What they do do is take responsibility of their income and expenses and make sure the money they do get is working for them rather than the other way around. They also use the biggest tool available to them wisely, and that is their own home.

To understand how to use your home loan and mortgage better visit our site, but remember this; if you want to take control, then get an education from those who know, and more than anything, be patient and enjoy the process

About the Author
Dean Whittingham is author and writer for his company Tridean Pty Ltd trading as www.TrideanDevelopments.com

Mortgage Refinance

2006-05-05T21:49:00.000-07:00

Microsoft Encarta defines 'mortgage' as 'an agreement by which somebody borrows money from a money-lending organization such as a bank or savings-and-loan association and gives that organization the right to take possession of property given as security if the loan is not repaid.'
Let's take two examples. Bethany and Nancy want to buy a new house each. But they don't have enough funds. However, Nancy has a large house whereas Bethany doesn't have any. Is their a way out for them? Yes. Both apply for a loan. Bethany pledges the house that she is likely to buy. Nancy pledges the house that she owns already.

In simple terms, a Mortgage Refinance is a loan to buy a home by pledging an existing or prospective home. When people apply for Refinancing, their application is handled on individual merits. They can submit the application directly to the lender. Or, if they need some assistance to decide on the Refinance plan that is suitable to them, they can consult any mortgage professional. The mortgage professional can evaluate their credit situation, recommend the appropriate Refinance Program, and help them submit the application to the lender.

Once the application is submitted, the borrowers' Credit Report, Credit Profile, Mortgage Property Appraisal, Mortgage Property Title Report and all other relevant information as given in the application is verified.

The Credit Profile is a documentation of how a borrower repaid any previous loans or met any previous financial obligations. It contains: Personal Identity Information, Employment Information, Credit Information, Public Record Information and References. The lending institution makes a very careful assessment of the documents.

Once the loan is approved, the borrower is asked to sign the relevant Refinance papers, the loan is advanced, the mortgage property is recorded and the fund is disbursed to the beneficiary.
Until Bethany and Nancy repay their loans, their pledged houses come under possession by the lender institution as a security. A Mortgage Refinance transaction takes 2 to 3 weeks to complete. All lender organizations have loan officers who help in mortgage needs. Today, a borrower can apply and consult a loan officer online.

by Ken Marlborough

About the Author
Refinance provides detailed information on refinance, bad credit refinance, car refinance, loan refinance and more. Refinance is affliated with Refinance Used Auto Loans.

Mortgage Refinancing – How to Organize Before You Apply

2006-05-03T21:32:00.000-07:00

If you are going to refinance your home mortgage you can save yourself some trouble by organizing your documentation before applying. Here is what you need to know to make your life easier while applying.

Be prepared; it’s not just the Boy Scout motto, it can save you money on your mortgage. There are a number of costly mistakes homeowners make when refinancing their mortgages. Not organizing your documentation prior to applying is a mistake that could delay your closing; this could result in losing your guaranteed interest rate. Before you start shopping for a mortgage make sure all of your financial documentation is in order. Here is what you need to put together.

Pay Stubs and W-2s

Keep one month’s worth of recent pay stubs for you and your spouse. If you are self-employed you will need to dig up tax returns for the last two years. Find the w-2s from your employers for at least two years for both you and your spouse. These documents will help you calculate your average monthly income.

Bank Statements

Keep two months worth of statements for your bank accounts, investment accounts, and retirement plan. This will enable you to document your assets.

Homeowner Documents

You will need the most recent deed to your home if you have one, your title insurance policy, homeowner insurance policy, your most recent appraisal, and the last survey of your home. The lender may require some or all of these documents. You should also have the most recent statement from your current mortgage lender, their 800 number, and the payoff amount of the current loan.

By organizing all of this information before you begin shopping for a loan you will streamline the application process. Being prepared could even save you money on the new mortgage. If you fail to prepare you could miss your closing deadline; if this happens and the lender’s interest rate guarantee expires, you could lose money. To learn more about saving money and avoiding common homeowner mistakes, register for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour is a mortgage professional and the owner of RefiAdvisor.com, a mortgage resource site offering a free gift for homeowners: "Mortgage Refinancing - What You Need to Know." This guidebook helps homeowners avoid common mortgage mistakes and predatory lending practices.

Claim your free guidebook today at: http://www.refiadvisor.com
Minneapolis Mortgage Refinance
Article Source: http://EzineArticles.com/?expert=Louie_Latour

A Mortgage Refinance with Bad Credit - The Pros and Cons

2006-05-02T18:15:00.000-07:00

To many, the term 'bad credit' is the end of the world when it comes to getting financing in the near future. However, it doesn't always have to be like that, you can take the bad credit mortgage refinance option! Mortgage refinance vs. equity finance It is essential at the outset that you understand there is a fundamental difference between mortgage refinancing and equity financing. Basically, with equity financing you are using the surplus amount you may have stored up in your property between your outstanding mortgage amount and the appraised value of your home. However a mortgage refinance is where you find a new lender willing to lend you the whole appraised value of your property, the sum of which you then use to repay your existing mortgage lender and the remaining sum you can utilize in any manner you wish. Because of this, you are faced with a different set of problems than would be the case with an equity financing. The pros of a bad credit mortgage refinance Aside from any possible equity financing you can do with your property, without doubt the biggest upside to a bad credit mortgage refinance is the fact that it is a long-term and cheap form of borrowing. Interest rates are likely to be low and, possibly, can even be fixed. You could even possibly benefit from certain tax advantages from a bad credit mortgage refinance. Because of this, bad credit mortgage finance can allow you to do things financially that may not otherwise be available to you as a person with a bad credit rating. You could use the equity you free up after you repay your original mortgage lender to invest in stocks and savings that will give you a better yield than you are currently getting on the property. Alternatively, you could pay off all outstanding debts you have so that you have no interest and debt payments to make each month – merely a mortgage repayment. Finally, you could even use the equity you get to invest in a long-term investment plan like your pension. In fact the options are so limitless that you should really consult with a financial expert who can best advise you on how you should put that money to the best use for you! The cons of bad credit mortgage refinance The number one downside to any mortgage refinancing, whether it be bad credit or otherwise, is the fact that mortgage lenders do not like to be repaid early. As such they usually incorporate some expensive penalty clauses to try and make it not worth your while repaying them early. With this in mind, you will need to read your original mortgage agreement with your original lender very carefully to make sure you won't have any onerous default payments to make; or, you could try and arrange for the new lender to swallow these. That said, if you make any arrangements with the new lender that they agree to pay these fees for you, you then need to make sure they do not put any restrictive clauses in your new refinance mortgage agreement that would prohibit you from refinancing your mortgage again at some time in the future if the occasion warrants such. Without a doubt, as a person with a bad credit history and bad credit rating, a bad credit mortgage refinance can open up avenues to you that would not otherwise be there. You do, however, need to give consideration as to whether or not you want to take this route. Not least because at the end of the day your house and family home is on the line!

About Author

Monique Thomas helps you find the resources and information you need to make an informed decision on your finances. Subcribe to our announcement list by visiting: http://www.crazydebt.com

Mortgage Refinancing – Do Your Homework First

2006-05-02T07:46:00.000-07:00

If you would like to save money on your mortgage you need to shop for the best deal. In order to avoid common mistakes homeowners make when shopping for a mortgage, you need to do your homework before you shop. Here are the basics you need to know before getting started.
Finding a new mortgage with a lower interest rate and better terms can save you a great deal of money. Most homeowners do know enough about the mortgage industry to recognize a good mortgage when the find one.
Before you do anything else you need to make sure your credit is in order. To get the best interest rate for your new mortgage you must not skip this step. Request a copy of your credit report from each of the three credit agencies. Once you have these reports go over each one with a fine tooth comb for errors. If you find problems you will need to dispute the error.
Once your credit reports are in order, focus on making all of your payments on time for at least six months. Mortgage lenders need to see you have a reliable payment history. By making these payments on time you will improve your credit score and qualify for a better interest rate.
If you have multiple credit cards the amount of outstanding credit you carry can also affect your credit score. Open accounts are potential debts; these accounts add additional risk for the lender. Close accounts you don’t need, especially the department store charge accounts.
Shop from a wide variety of mortgage brokers and lenders; using the internet makes it easy to compare offers. When you do this make sure you are get quotes without the lenders accessing your credit history. Too many lenders accessing your credit can damage your credit score.
Once you have selected a mortgage lender and an interest rate make sure the lender locks the rate for you. Get this lock in writing and make sure the lender grants you enough time to close on the mortgage. If you take longer to close than the lender has guaranteed you could lose your interest rate.
To learn more about common mortgage mistakes you need to avoid sign up for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour is a mortgage professional and the owner of RefiAdvisor.com, a mortgage resource site offering a free gift for homeowners: "Mortgage Refinance - What You Need to Know." This guidebook helps homeowners avoid common mortgage mistakes and predatory lending practices.
Claim your free guidebook today at: http://www.refiadvisor.com
St Louis Mortgage Refinance
Article Source: http://EzineArticles.com/?expert=Louie_Latour