Refinance Home Mortgage Guide

A time for many people to start thinking about mortgage refinancing is when they are headed for foreclosure. Many people get into trouble because they are not able to keep up with their payments; the payment is either larger than they anticipated or their finances have taken a turn for the worse and they can no longer afford the mortgage.

Foreclosure is a scary thing; however, instead of waiting for the lender to foreclose why not refinance and keep your home?

Save Your Home by Mortgage Refinancing

When you find yourself under water and cannot afford your mortgage payments don’t just stand by and let foreclosure happen. Take action instead of defaulting on the loan. Refinancing your mortgage can be as simple as filling out a form on the Internet and your problem could be solved. Lowering your monthly payment by 50 to 100 dollars could mean the difference between making or breaking your finances.

Mortgage refinancing can also save you money. There are a number of programs available to reduce your mortgage rate and payment. Depending on the type and amount of your current mortgage you could knock several points off your interest rate. Doing a bit of comparison shopping could surprise you just how much you can save every month.

Mortgage Refinancing Help is Available

If you don’t think you’ll qualify or that help is available to you, consider contacting your current lender about a payment arrangement or forbearance. Mortgage lenders don’t want to foreclose on your home; foreclosure is a losing proposition for everyone. Don’t sit back and watch your home and finances slip away…pick up the phone and call your existing lender. There are also government programs for homeowners with Adjustable Rate Mortgages that you might not know about. FHASecure mortgages are one such program. There are other programs available for homeowners with fixed rate mortgages.

Mortgage refinancing could be the lifeline you need to save your home. The best way to get started refinancing your mortgage is to contact a local mortgage broker. There are risks involved when dealing with mortgage brokers; most will markup your rate for a commission and frequently slip junk fees into your contract. You can learn how to avoid this markup and junk fees by registering for the free videos found on this website. Register today and you’ll receive a list of recommended mortgage brokers in your area that do not mark up mortgage rates for a commission. You can find out more about the free videos using the links at the top of this page.

Mortgage refinancing is the process of paying off your current home loan with the proceeds of a new mortgage while using your property as loan collateral. There are a number of advantages to refinancing and when done properly can keep you squarely on the road to financial success. Here are several tips to help you decide if mortgage refinancing is right for you.

Is Mortgage Refinancing Right For You?

In order to decide if refinancing is the right move for your situation it is important to understand how the process works. If you are considering refinancing your mortgage as part of a strategy to get out debt you can easily consolidate higher interest debt and gain a tax deduction when refinancing your home. One of the most important considerations when refinancing your home is to secure the lowest possible mortgage rate. The problem with the rate quotes you find on the Internet and from your local mortgage broke is that the person providing you the quote has marked up the rate for a commission. Unless you can recognize and avoid this markup you’ll never get the lowest possible mortgage rate for your home.

Consolidate High Interest Debt

If you are considering consolidating your high interest debt when refinancing you will be borrowing against the existing equity in your home to pay off credit cards and other installment loans. This means you will be borrowing more than you owe on your existing mortgage which could result in qualifying for a slightly higher mortgage rate. A higher mortgage rate results in a higher monthly payment; however, the tradeoff is that you will be paying less to creditors and gain a tax deduction for all of the interest you pay on the consolidated debt.

Another advantage of refinancing your mortgage could be switching to a fixed or variable mortgage rate. Variable or Adjustable Rate Mortgages (ARM) typically have lower rates than their fixed rate counterparts. If you are in need of a lower payment and are not consolidating debt choosing an Adjustable or Hybrid Rate Mortgage could lower your payment if you are currently paying on a fixed rate mortgage loan. Another common reason for refinancing is to avoid a costly balloon payment if you don’t have the cash on hand to pay it off.

There are a number of options available to you when refinancing your mortgage. Direct lenders are available through banks, credit unions, and other finance companies that fund their own loans. This is not necessarily the best option as any entity that funds its own loans is exempt from the Real Estate Settlement Procedures Act and does not have to disclose their profit margins or markup of your loan. Take out a mortgage from your bank and you’ll never know how much you could have saved refinancing your home.

Mortgage Brokers Access Wholesale Rates

A better option is to refinance with a mortgage broker. These individuals have access to wholesale rates and can offer you a much more competitive deal than your bank. The problem is that many brokers pad their commission by marking up your rate, often without telling you. Once you learn to recognize and avoid this unnecessary markup of your mortgage rate you’ll have access to wholesale rates and can literally save thousands of dollars every year.

You can learn more about your mortgage refinancing options, including strategies for avoiding junk fees and the markup of your mortgage rate with the free videos found on this site; register today using the links found at the top of this page and you’ll be on the path to saving thousands of dollars in unnecessary mortgage interest and fees.

If you’re considering talking out a new mortgage to refinance your existing home loan, the Internet is an excellent tool to shop around for the best loan rate. You can use the Internet to easily compare mortgage rates without having your credit pulled.

Most online applications ask that you only describe your credit and do not ask for a Social Security Number. Most sites provide you an offer and then contact you asking to run your credit report.

Because you’re not providing a Social Security Number there is no risk to comparison shopping online and you can quickly compare refinance quotes from a variety of mortgage lenders. There are several websites that allow you to submit your application for preapproval to a variety of lenders and then come back with the top for quotes based on the information you provide.

If you complete the preapproval process using a form like the Guide to Lenders form found on this site you could easily have favorable quotes from several lenders in a matter of minutes. There are a few steps you’ll want to take to ensure that the quotes provided are not lemons:

Taking advantage of the net to shop and compare loan offers can help you find the most competitive mortgage rates if you go about it correctly. You can learn more about avoiding junk fees and the unnecessary markup of your interest rate by registering for the free videos using the links provided at the top of this page. Don’t let a pushy mortgage broker back you into a loan that isn’t in your best interest. Register today and you’ll be on your way to saving thousands of dollars on your next home loan.

Junk fees will not be a percentage of your loan amount but will show up as itemized charges ranging from $50 to $1,000 on your Good Faith Estimate and HUD-1 statement.

These fees are mostly invented by your mortgage broker and vary from one shady broker to the next. Here are several tips to help you recognize and avoid paying these unnecessary fees on your next mortgage loan.

The easiest way to spot them is to compare the Good Faith Estimate and Statement to see how many of the fees listed are being paid to the mortgage broker.

The person arranging your mortgage gets paid by charging you an origination fee and by marking up your mortgage rate…often at the same time. On top of this they may charge a loan processing fee of as much as $400.

There are a number of other charges you’ll find on your Good Faith Estimate that are paid to third parties like your title company. These third party fees are usually legitimate and are standard from one broker to the next in your State. Your title company for instance charges a fee to close your mortgage loan and lenders charge underwriting fees when approving your mortgage.

Keep a close eye on your appraisal fees and credit report fees if they are being paid to your broker. Mortgage brokers often mark up these services and pocket the difference after the third party companies have been paid. You can keep your mortgage broker honest by asking to see an invoice for any charges paid to third party companies.

You can learn more about refinancing your mortgage without paying junk fees or the unnecessary markup of your mortgage rate by registering for my free video tutorial using the links found at the top of this page.