Home Mortgage Refinancing Guide

Mortgage Lenders are pulling their best deals as hopes of deeper cuts in mortgage interest rates fade. Homeowners wanting to refinance their mortgages should act quickly because interest rates on fixed mortgage loans are likely to rise soon. When interest rates were cut this month, many were predicting a further drop before the end of the year. As a result, the interest rates on fixed rate mortgage loans were expected to remain at the current low levels and even drop over the coming months. This now seems less likely.

A number of mortgage lenders have pulled their fixed rate deals over past weeks as the chances of another rate cut later this year has diminished. A recent survey showed a jump in inflation during the month of July, up from June. The pressure is on lenders to increase the cost of their fixed rate deals, so now is a good time to lock in a low rate.

If you are coming to the end of your existing deal and are looking to refinance to a fixed interest rate, apply now. It takes an average of about two months to refinance a mortgage. However, if you wait too long to see if rates drop further, you could lose out.

Mortgage Calculator

There are many mortgage refinancing options that were not available 10 years ago, allowing many more people to qualify for mortgage loans. The greater choices today also require serious consideration as to which is the best loan for your. Homeowners must take into consideration their present and future financial picture. People should avoid getting in over their heads in case they’re hurt or out of work for a time.

Three mortgage refinancing options:

1. 30 year fixed interest rate. Offers the most affordable payments that are relatively low; however, the interest increases the total cost of the mortgage.

2. 15 year fixed interest rate. This option builds equity the quickest, saves on interest paid; however, has bigger monthly payments and higher income requirements to qualify.

3. Adjustable interest rate mortgages. These loans offer initial low interest rates and different terms; also, the shorter the term before the rate can be changed, the lower the interest rate. Good for homeowners that know they’ll move or refinance before a rate adjustment; however, if the interest rates rise, so will your payments.

Mortgage Calculator

Mortgage financing dropped to a five month low this Summer as homeowners looking to refinance waited for the August drop in mortgage interest rates. Figures from a recent survey this week show that under 180,000 mortgages were approved this July, down seven percent for June and the lowest since February.

Refinancing mortgage loans dropped 9 percent from last summer, while mortgage loans for new home purchases were down six percent.

The survey revealed the extent to which the homeowner’s appetite for home equity loans has gone up, with 25 per cent more home equity loans approved in July. Borrowing on credit cards and personal loans also dropped during the month, following the recent trend. Consumers have been borrowing less to spend in recent months. The rise in overall mortgage loans was the lowest since December 2001.

Want Frequent Flyer miles for refinancing your mortgage?

Several mortgage lenders off this perk, refinance your home loan and get a load of frequent flyer miles to boot. If ?miles for my mortgage? is something you’re interested in check with the airlines before contacting lenders.

According to website bestfair.com, you can earn miles for buying, selling or refinancing a mortgage from a variety of lenders. Make sure you read the fine print as these offers vary from state to state. Most programs require that you enroll with the airline prior to contacting your lender or mortgage broker.

Mortgage Calculator - Calculate Your Lowest Mortgage Rate

We now offers a free graphing mortgage calculator. With this mortgage calculator you can display your potential savings from refinancing your mortgage, the monthly amortization table, loan payment amount, and much more. Allows you to include property taxes and private mortgage insurance in your calculation.

Features charts, summaries, bi-weekly payments, annual and monthly amortization tables; best of all the mortgage calculator and our guide to refinancing your mortgage are free.

Mortgage Calculator - Calculate Your Savings When You Refinance a Mortgage