(61)Deciding Upon a Refinance Lender.

Finding a good lender to refinance your mortgage can be almost as important a decision as the actual mortgage you choose. In order to make a wise selection of a refinancing lender you should make sure that you do the following four things.
Know the objective of your mortgage refinance
Do you want to lower your current interest rate? Refinancing your mortgage can be profitable if your current mortgage is 2% higher than the prevailing rates. You can find out the prevailing rates by checking with your current lender or any bank. Newspapers will also print the daily rates.
Moving from an adjustable rate mortgage to a fixed rate mortgage can save you money if you time it well. When mortgage rates start creeping up, consider looking for a refinance lender.
The mortgage refinance lender you pick will want to know your reason for refinancing to aid in the process of finding the best mortgage product for you. You will also want to be aware of your credit score and the terms of your current mortgage.
Know the different types of refinance lenders and the different types of refinance products available
Just like when you originally financed your home's mortgage, there are many lenders available for refinancing: Banks, credit unions, mortgage companies, or online lenders are just a few of your options. There are also brokers who will find a variety of lenders for you. You should be aware, however, that unless specifically contracted to do so a mortgage broker does not have to find the mortgage refinance package that might be the best for you.
Refresh your knowledge of the mortgage financing vocabulary. Be fluent with terms such as interest rate, point and prepayment penalties. Also, most newspapers publish a daily listing of current interest rates for different types of mortgages. Become familiar with these listings and check them on a daily basis.
Shop around and find several different lenders to refinance your mortgage The market for refinancing mortgages has become so crowded and competitive that it is easy to find several lenders to compare. The newspaper and the yellow pages are also good places to start. If you are comfortable online, the Internet is an excellent resource. There are many services online which will perform a preliminary search for a lender. Your current mortgage lender should also be included in this group.
Negotiate the mortgage refinance loan that suits your needs Generally, the compensation a lender makes on refinancing a mortgage is dependent on the terms of the mortgage so it is up to you to make sure that the loan received is the most advantageous for you.
You might want to investigate mortgage refinance lenders who offer no closing cost loans or free appraisals. It is important to make sure that you are comparing like products. To do this, have your lender present proposals in writing and require ample time to compare the different offers.
Compare the features of each loan. Some elements to compare are the type of loan, interest rate, points, prepayment penalties, and closing costs. Check the rate you are being offered against the rates from the most current newspaper listings. The more organized, thorough and knowledgeable you are, the better your decision will be.
Deciding to refinance your mortgage is an important choice that should not be taken lightly. Know why you are doing it. Know the possibilities for refinancing lenders and products that are available. Be willing to shop for the best lender and to negotiate a beneficial deal. If you follow these steps, finding a good mortgage refinance lender will be much easier.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About the author:
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans. website.
Written by: John Mussi
EA Builder

(62)Deciding Whether to Refinance a Mortgage Loan.

If you're considering whether or not to refinance your mortgage loan, you may find that the decision that you make will influence your finances for years to come. Refinancing can be a powerful tool to save money and receive better interest rates and loan terms, but if you enter into a refinance loan without taking the time to consider the options and potential ramifications then you might end up spending more on the refinance than you would have on the original mortgage loan.

To help you in making this important decision you'll find below a listing of several factors that should be considered before making your final choice.

The information provided will hopefully assist you in making the decision that's right for you and your current situation.

Mortgage Payments and Equity

The first thing that you should take into consideration when thinking about refinancing a loan is the amount that you have thus far paid against your original mortgage. Any potential refinance lender will look at how long you've been making mortgage payments and how much equity you've managed to build up in your home.

Since you'll be borrowing the amount remaining on the original mortgage and once again using your home as collateral, the more of your original debt you've managed to repay then the more likely you are to receive a good offer for a refinance loan... as a general rule, you should have already been making payments for at least one or two years. Some cases may come along where it's too good of a deal to pass up, of course.

Evaluating the Market

Once you've taken the time to consider whether or not you've made enough payments on your original mortgage loan to refinance, you should begin looking at the lending market to determine whether or not it would be worth it to get a new loan. The loan market and interest rates may have decreased since your original mortgage loan... but they may have increased instead, depending upon how the economy has been doing in the time since you received your first mortgage. Investigate lending rates and the market at large to avoid applying for a refinance loan only to end up with a higher interest rate than the one that you originally had.

Determining Potential Savings

Once you've done some of your preliminary research, it's time to determine how much you might stand to save by refinancing. Using either a compound interest formula or an online mortgage payment calculator, determine what the monthly payment would likely be at current interest rates for the amount that you need to borrow. You're looking for a significant savings from your current payments, since it likely wouldn't be worth the trouble and the additional fees that may be involved to simply save a little bit from what you're currently having to pay.

If it looks like you might be able to save quite a bit by refinancing in the current market, however, then it's time to start looking for a lender so as to take advantage of the situation.

Finding a Refinance Lender

It's important to remember that a variety of different lenders exist, and that each is likely to offer you a different interest rate. Take the time to shop around at various banks, mortgage companies, and online lenders, requesting quotes and comparing loan offers in the same manner that you would any loan.

Find the loan that serves you best, so that you can get the most out of your refinancing experience.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About the author:
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans. website.

Written by: John Mussi

(63)Deducting Points On Home Refinances

Any points that you pay in the refinancing of your residence are tax deductible over the length of the loan in question. The deduction is allowable only if the residence is your primary home and the new mortgage replaces a previous one and/or is used to improve the residence. To the extent that money is taken out to pay off credit cards and non-residence costs, the points may not be used as a tax deduction.

Big Deductions By Refinancing Twice

If you refinanced your primary residence twice during 2009, you may be in for a very nice surprise. A significant tax deduction can be created when you refinance twice in one year. If you refinance a mortgage, you accelerate the deductible amount of points from the first mortgage and may claim the points from the first mortgage all at once.

As an example, assume that I refinanced my home in January 2009 and paid $3,000 in points. Interest rates continued to drop through 2009 and I then decided to refinance again in August. Because I paid off the original loan with the refinance, I am able to accelerate the value of the points of the January loan.

So, what tax deductions have I created for my 2009 filing period? Initially, I am going to deduct a percentage of the points off of my latest refinance. The deduction will amount to the total amount of points paid divided by the total months of the loan. This will not be a big deduction, but every little bit helps.

In addition to this amount, however, I will also deduct the full $3,000 in points that I paid on my January 2009 refinance! I am able to claim this deduction because I "accelerated" the deductibility of the points by paying of January mortgage with the August refinance.

By refinancing twice, I get a lower interest rate and a healthy tax deduction. Ah, the value of owning a home.

About the Author
Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses by finding
overlooked tax deductions and credits through a free tax return review.

Written by: Richard A. Chapo

(64)  Defrazzle Your Finances


I'm living so far beyond my income that we may almost be said to be living apart.

e.e. cummings

Money. You can't live with it, you can't live without it. No matter how hard you try, there's never enough. The only thing increasing in your bank account is your debt, and you're beyond understanding how to make ends meet. Is that how you feel?

Well, there's no need. Getting on an even footing with finances is hard, but not impossible, when you take small steps. You didn't get there overnight; you won't get out of it overnight. It doesn't have to be painful - in fact, you'll be more successful if you make a game of it.

Here's how to get started: figure out, approximately, how much you spend in a week on "incidentals" - coffee, a magazine, new cosmetics, etc. Just keep your sales slips for in your purse and add them up at the end of the week. This is not grocery money, car payments, etc.; this is just incidentals - things that you can live without if you're desperate!

When you have that amount - say it's $30.00 - take that much out of the bank the following week, and see how much you can have left over at the end of the week. Use ONLY CASH on those incidentals. Whatever is left over goes in an envelope somewhere where you won't spend it.

After a month, see how much you have in your envelope. If it's $20.00, that's yours to spend on yourself as a reward.

Now, take that amount ($20.00), divide it by four ($5.00), and subtract that amount from what you've been spending weekly ($30.00-$5.00= $25.00). Now, start again with the reduced amount.

Once you've gotten to the place where this is getting really uncomfortable, stop, move back to the lowest comfortable figure and stick with that budget. Take half of what's left over from your original spending total (in this case, $30.00/2=$15.00), and apply that to your debt each and every month like clockwork - make it an automatic payment from your account every month - even if it's just two dollars. The rest (in this case the other $15.00) goes in a savings account - also paid automatically. You can then apply the same principle to groceries, or gas, or any other expense that is variable and see how far you can comfortably cut back.

This enables you to save without that "scarcity" mentality that makes you poor in the first place. Because it's a game and because you're trying to see how much you have left over at the end of the month your mindset is not "I can't afford that" (scarcity) but it's now "I could buy that, but I'd rather see how much I can save!" (abundance).

There are great resources out there to help you move even farther ahead. Wonderful programs like "Mvelopes" or Mary Hunt's "Debt-Proof Living" e-zine. The trick, however, is to always start small, and move forward slowly, building habits as you go.
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Happy spending!

Darlene Hull

About the author:
Darlene Hull is the creator of the free "Mom-Defrazzler tool" - 52 Tips for Moms to get from Chaos to Calm in One Year and the "Merry Moms" newsletter, a weekly humour e-zine to help moms defrazzle with laughter. You can download this tool and newsletter on her website at .

Written by: Darlene Hull

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