(117)Home Refinance Closing Costs - Things You Should Know

Home refinancing closing costs should be consider before signing a contract. You can actually lose money on closing costs if you aren't careful. Shopping lenders can help you find lower fees, but you may find other financing options have lower costs.

Length Of Time To Recoup Costs
While the general rule of thumb is to keep a loan for two years to recoup closing costs, it isn't a hard fast rule. For one, if you only have five years left on your loan, then refinancing won't save you money since you have already paid most of the loan's interest. There are also other reasons for refinancing, such as reducing terms or improve caps on an ARM.
To know if you can save money by refinancing, take the time to do a little math. Add up your current mortgage's interest costs for the rest of the term. Compare this with the cost of refinancing and the new loan's interest cost. If you can see a savings, then refinance for those better rates.

Lenders Charge Different Fees
Most people are surprised to find that lenders charge different fees. While the standard is a couple of thousands, points can also increase costs. Since rates and fees vary so widely between packages, a better number to compare is the APR, which gives the true cost of the loan.
Online research can yield thousands of dollars in savings. Within a few minutes you can receive several quotes from a mortgage broker. You can also request quotes from individual lenders' sites too.

Variety Of Refinancing Options
There are several ways to refinance your mortgage. You can choose an ARM, fixed-rate, or hybrid. You can also reduce your loan term or increase yearly payments to lower interest costs. Each option has pros and cons, and should be considered with your unique budget.
Another option to access your equity is to use a line of credit or home equity loan. These two options don't have the closing costs of a traditional mortgage, but they don't lower the rate on your principal.
Before refinancing, make sure that you will save money by researching both loans and lenders.

About the author:
Carrie Reeder offers advice about Mortgage Refinance Loans Online. View our Recommended Lowest Rate Mtg Refinance Lenders Online.
Written by: Carrie Reeder

(118)Home Refinance: Why You Want to Refinance Your Mortgage

You may want to refinance your home for several reasons. The biggest reason that people refinance their homes is to save money.
If you qualify for a lower rate you could lock in that lower mortgage rate and stretch out the payments so that every month you are paying less to live in your home than before. Once you decide to refinance your home, you will undoubtedly be confronted with a variety of choices as to what sort of new loan you can get.
One tactic people use is to shop the rate around to several banks to see what the best deal is for them. Refinancing your mortgage can certainly free up a lot of capital but you have to be careful. Some unscrupulous lenders may advertise a lower rate, but once you work out the math the lender may have added so many points and fees to your refinancing that you are actually paying more than some of the other advertised rates.
When you refinance your mortgage, you may be able to substantially reduce your monthly payments, especially when we are in a low interest rate environment like we are today. You may have bought your home in times of relatively high mortgage rates and therefore are locked into higher payments than you should be. These days, mortgage rates have been hovering around 6% and lower for a while. If you want to refinance your home and cut your monthly payment, now may be the best time to do it. Mortgage rates rarely stay the same for long time periods
Refinancing Your Home to Free Up Money for Other Purposes Many people who are deeply in credit card debt or who have recently filed for bankruptcy may want to refinance their homes in order to free up some of their home equity and pay off their other debts. This can be a good strategy if the other debts are high interest rate debts. It's not too hard to figure out that paying off debts that are charging you 20% per year with debt that is only costing you 6% a year might be a good deal.
People who refinance their homes often come out better than before, but as usual it pays to shop around. Find the best deal your can for your mortgage and your may be able to have a lot of spare money every month.

About the Author
Richard Martin is a contributing writer at has Vioxx and injury lawyer articles. This article may not be altered and links must be kept live.

Written by: Richard Martin

(119)How and Why to Refinance Your Mortgage

Refinancing your mortgage can be a great way to reduce monthly payments, lock in a better interest rate, and gain additional time for repayment, but it should not be entered into lightly. Refinancing at the wrong time or for the wrong reason can actually result in you having a higher payment or a lower interest rate.
If you're interested in refinancing your mortgage but aren't sure whether or not the time is right to do so, here are some simple suggestions to help you decide.
You'll also find some basic information on the refinancing process as well as things to look for to help you determine if the time is right to apply for a refinance loan.
What is refinancing?
If you're not sure exactly what refinancing is, it is simply the act of getting a second loan to pay off the original... leaving you with the new payment schedule and the new interest rates. Refinancing often lowers your monthly payment, because the new loan is taken out on a smaller amount than the original mortgage loan.
In addition to a potential significant reduction in your monthly payment and interest rates, refinancing can buy you more time to pay off your mortgage if you're quickly approaching a balloon payment that you can't quite afford or simply would like to extend your loan.
How do you refinance?
In order to refinance a mortgage loan, you have to find a lender to issue the refinancing loan. The loan application is very similar to most other applications, except that the subject of the loan is the balance of the original mortgage and that the collateral is the equity that you have in the house or other real estate that the mortgage was taken out to purchase.
In most cases the bank or other lender that you take out the refinance loan through will handle all of the transfers and payment of the mortgage, though there may be some instances where you have to handle it yourself depending upon the specific lender that you use.
When should you refinance?
The best time to refinance a mortgage is after a significant portion of the mortgage has been repaid and sufficient equity has built up. Since the equity is most likely what will secure the refinance loan, it's important to have enough to cover the loan amount.
You should also take care to apply for your refinance loan at a time when interest rates are lower than when you took out the mortgage, if possible, so that the lower interest rate acts as an additional bonus to refinancing.
In most cases, you'll end up with a lower monthly payment as well, but this will largely depend upon the term that you agree on for the refinance loan and the amount remaining on the original mortgage.
Signs that the time is right to refinance
A variety of signs can indicate that the time is right to refinance your loan. Begin watching the news or reading finance journals to determine what national interest rates are set at, and if they are likely to increase or decrease in the near future.
Depending upon the loan market, you may also notice lenders offering special rates or promotions for a limited time... investigate the offers to make sure that they're legitimate, and consider whether or not they will better suit your needs than waiting for rates to change.
When the market is slow, a variety of good opportunities develop in order to stimulate borrowing... don't let a good deal pass you by because you're unsure.
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 website.

Written by: John Mussi

(120)How Banks Can Help You Improve Your Personal Finance


If any institution is known for managing finance, it is banks. This is why many people seek advice about personal finances from professionals at their local bank. Banks can provide you with personalized finance solutions. They can help you better manage your finances.
Talking to a bank advisor can often help you find out what financial solutions are available and how can these solutions can work to your benefit.
In order to boost your confidence in your personal finances and your future, you need to understand your goals and needs. When you thought throughwhat you really want your personal finances to look like, you can go seek help from your bank.
Even if you have a concrete plan that includes all your wants and needs, but only a vague idea about what your financial future looks like, you should still drop in for help. They are there to guide you in your quest for personal financial liberation. They are there to help you--and you should utilize their services: that's what they are there for.
They are not the enemy. They are committed to helping people who seekhelp in financial matters.
Look at your current personal finance situation. Are you happy with it? Have you tried everything to better it on your own, to no avail?
If you have honestly tried it all, maybe its time you entered your bank and had a chat with them. They are there to aid you with almost all the issues surrounding your personal finance: How to pay less interest on a loan; how to save; and how to ensure that your mortgage rates don't increase.
And that's just a fraction of what they can offer you. Stop in your bank today, get advice, and start your journey on an alternative, better planned financial path.

About the Author
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Written by: Sarah Thomas

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