Mortgage Refinance Rates
By: rateempire
* Refinancing your existing mortgages has many advantages like lowering the monthly payments or interest rates paid. The latter is in fact one of the most important reasons for opting for refinance. Thus a vital point to be considered while taking a mortgage refinance is mortgage refinance rates.

*Mortgage refinance rates depend upon various market factors as well as your personal factors as a borrower. But mortgage refinance rates mainly depend upon the interest accrued on the refinance loan. The mortgage refinance rate is expressed as the Annual Percentage Rate (APR). APR is the total amount of money repayable by the borrower to the lender on a loan, per annum.

*It will also depend on the kind of mortgage refinance loan you would choose. The different kind of mortgage refinance options available can be broadly classified on the basis of:

*-Fixed mortgage refinance rate: Various fixed rate refinance include 30 year fixed mortgage refinance, 20 year fixed mortgage refinance, 15 year fixed mortgage and 10 year mortgage refinance, etc.

*-Adjustable mortgage refinance rate: This category includes 1 year ARM (Adjustable Rate Mortgage), 3/1 ARM refinance, 3/1 interest only ARM refinance, 5/1 ARM refinance, 5/1 ARM interest only refinance, etc.

*Few ways by which you can reduce your mortgage refinance rates are: -Keep a check on your credit score: Your credit history will have a great impact on the mortgage refinance rate you will be offered. Making payments late or missing payments will decrease your credit score. Also, take care to see that you don't use your credit cards and line of credit loans to the maximum credit limit available to you. Doing so will again decrease your credit score. Having a bad credit score will not stop you from availing a mortgage refinance. But the mortgage refinance rate offered to you will be 2% to 6% higher than usual. So try to improve your credit score to get lower mortgage refinance rates.

*-Think about paying points: This is one more alternative to lower mortgage refinance rates. One point is equal to one percent of the mortgage amount. For instance, a mortgage loan of $10,000 with 3 points will incur additional $3000 as charges. Higher the points charged to the mortgage, lower will be your mortgage refinance rate. Points can either be paid upfront or financed by the amount from the loan.

*-Do your research: As in all other sectors, there is intense competition in the lending sector too. It might make sense to obtain mortgage refinance from your current lender, but they might not necessarily offer you the best mortgage refinance rates. Thus it is wise to compare rates offered by various lenders. And with World Wide Web at your finger tips this should not be a tedious task. Applying online will help you get multiple offers from various lenders. Compare the mortgage refinance rates as well as the services of the lender and then choose the best offer suiting your needs.

*To get the best mortgage refinance deal don't compare only mortgage refinance rates but also consider closing costs and redemption penalties.

*Article Source: http://keywordbeast.com


Author Resource Box
*Martin Lukac represents Rate EmpireMortgage and Refinance Loan marketplace. RateEmpire.com is a destination site of personal finance, investing and taxes. For more information please visit Mortgage Refinance Rates

A New Mortgage for Big Savings
By: Trevor Goald
*Many first-time buyers rush into home ownership without exploring all of their options. They will, for example, accept a mortgage offer without realizing the sizeable monthly obligation. Sooner or later, refinancing may be the best alternative.

*Simply put, a mortgage is a long term loan that's repaid over a period of time. Most mortgages are set on a monthly payment basis, while others are "accelerated" to allow the borrower bi-weekly or weekly payment options.

*As with all loans there is an interest rate. A lower interest rate means lower payments, so it's best to shop around for the lowest possible rate. Even if you have "locked in" with a plan at a set rate, it may be possible to refinance your mortgage to take advantage of a lower interest rate.

*Mortgages are available in fixed and floating terms. In a fixed rate mortgage, the borrower is locked in at a set rate for the duration of the mortgage term. A floating mortgage means that the borrower will pay more or less each month, depending on the current interest rates. Both types of plans have their pros and cons, and the type of mortgage you choose has a lot to do with your present situation. Mortgage refinancing is a good tool to use when homeowners wish to switch from a higher adjustable plan to a lower fixed rate mortgage.

*The prevailing market rate keeps changing all the time. So it's quite possible that you have already committed to a mortgage with interest higher than the current rate. In this case, you are wise to consider refinancing your mortgage. In mortgage refinancing, the full payment of your current loan is entered into a new mortgage agreement, but at today's lower rate. If rates drop significantly, for example by two percent points, refinancing makes good sense. Check the prevailing rates of interest and compare them to what you're paying now.

*Deciding whether or not to refinance your mortgage depends on other factors as well. Look at the remaining term of your current mortgage. If there were just a few years remaining, it wouldn't make sense to refinance and commit to another extended payment period. There are also various costs associated with mortgage refinancing that you need to consider. Prepayment costs for your current mortgage, closing costs of the new mortgage, and other borrowing fees can come into play. Some lenders will also charge a fee for closing a mortgage early, so be careful to check the fine print.

*Refinancing your mortgage can also bring extra cash when you need it. If you have built a significant amount of home equity, you can use mortgage refinancing to obtain a home equity loan. In this case, you can use your home equity to generate cash. The proceeds from mortgage refinance can be used for various purposes, like debt consolidation, home improvements, or as a college fund for your children. Many people wisely use mortgage refinancing to consolidate their debts. Choosing one monthly payment over many bills is not only easier, but it saves you a lot of money by avoiding higher interest payments from credit cards and private lenders. Your pocketbook, and your credit rating, will look a lot healthier.

*When high interest rates and unpaid debt strain your budget, mortgage refinancing can be an easy solution. You'll pay less interest and save money.

****Article Source: http://keywordbeast.com


Author Resource Box
Writer Trevor Goald pens for a variety of well-known online magazines, on new home and home owner insurance topics.
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Pros and Cons of Reverse Mortgage Payment
By: rateempire


*California Reverse Mortgage is a loan where the lender either pays you a lump sum at one go, makes regular monthly payments, extends a line of credit, or a combination of the three. You continue to own your home and pay property taxes, operating expenses and maintenance. But because you make no regular pay outs on the loan, the balance owed rises each month with the interest applied to it. In the event of your death, your heirs would be responsible for paying the total debt, which is often done by selling or refinancing the house. There are a number of pros and cons for the various California Reverse Mortgage Payment Options.

*A.Line of Credit: This is when the access funds are at your discretion. The Pros and Cons of this type of California Reverse Mortgage payment are as follows

*Pros: Flexibility - One of the Pros of this Reverse Mortgage Payment is that you can access funds anytime, whenever you need them.

*Potential - Another Pro of this Reverse Mortgage Payment is its growth feature. The unused balance grows. This does not mean you are earning interest. The growth factor takes into consideration that your home has appreciated in value over the past 12 months and that you are one year older.

*Extra Income - You can use your equity to supplement your retirement income. You can take a lump sum of cash and a monthly check. You can also take a monthly payment and have a line of credit you can write checks on as you need.

*Cons: Spending lure - One of the Cons of this Reverse Mortgage Payment is that is that the funds can be easily exhausted.

*Red tape - To access your funds, you must submit a written request to the loan servicer managing your account. It includes several rounds of official documents and meetings to get the amount approved.

*B. Term: here you receive fixed monthly payments for a set period of time. The Pros and Cons of this type of California Reverse Mortgage payment are as follows:

*Pros Instant transfer - Funds are instantly and automatically deposited to your bank account meeting your instant finance or emergency needs.

*Regular money generated - You can receive large monthly advances helping in planning out your regular expenses.

*Cons Fixed amount - The amount of funds you receive each month is fixed, so if you need additional funds, you will have to request a payment plan change which is a time consuming process.

*A major disadvantage of this Reverse Mortgage Payment is that monthly advances are not indexed for inflation.

*C. Tenure: here you receive fixed monthly payments for as long as you live in your home. The Pros and Cons of this California Reverse Mortgage Payment are as follows:

Pros

*Worth it - The monthly advances continue for as long as you live in your home, even if the total amount you receive exceeds the value of your home. Despite this, you will never owe more than what your home is worth.

*No money worry - You can keep receiving payments for as long as you live. Your spouse will keep receiving the payments if he or she is still alive. You never have to sell your home even if you outlive the equity. The income you receive is tax-free.

*Cons The amount of funds you receive each month is fixed, so if you need additional funds, you will have to request a payment plan change.

*You leave less equity for your children if you choose the wrong program.

*******Article Source: http://keywordbeast.com


Author Resource Box
1CaliforniaReverseMortgage.com provides reverse mortgage quotes in California. For more information please visit Pros and Cons of Reverse Mortgage Payment