Mortgage News Update February 2008 P2-The Mortgage Site.ca
It can be difficult to determine when you should refinance your home loan. There are many factors that might have a bearing on this decision. Depending on what factors affect you, now could be the best time to refinance, or it might be better to wait.
Economic conditions are the chief factor in determining the prevailing interest rate. The government often uses higher interest rates to level inflation out, and to direct consumer spending. When consumers are spending more than they should, prices will rise. Interest rates grow correspondingly higher, and then spending slows down once more. Conversely, a slower economy favors low interest rates to encourage consumers to resume spending. The best time to refinance a home loan is when the economy is slower, with correspondingly low interest rates.
Despite your existing loan and intention to refinance, a good credit rating is still required to obtain the lowest possible interest rate. How good a deal you can acquire will depend heavily on your credit score. It is best to get your credit report from one of the three major credit rate reporting burears before you apply for your refinancing. This allows you to see if there are any errors in this report, have them corrected, and get an accurate idea of your credit score.
The length of time you have had your loan will be important to your lender. It is considered a poor idea to refinance shortly after getting your initial loan. Lenders prefer that you wait at least four to seven years before you consider refinancing your mortgage.
When the market value of housing increases, it can be an excellent time to refinance your mortgage. This is especially true if you are planning to consolidate debt or use some of your home equity. If you have improved your income or increased your credit score, refinancing can allow you to secure a much lower interest rate. Refinancing can also allow you to renegotiate the terms of your home loan.
When refinancing your home loan, be sure to make certain the prevailing interest rate lower than 2% of your current payments. Calculate the costs of refinancing carefully, remembering to add in any penalties or charges that may be accrued in the process. It is important to shop for the best deal when refinancing your home loan, making certain to compare the interest rates, terms, and conditions of the offer before accepting a particular refinancing plan.
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update informs consumers what the best interest rate is available for the financing of their home purchase, real estate investment or refinancing of an existing property. It also applies to mortgae renewals, ports and mortgage transfers. For your free consultation please contact: Steven Damas Senior Mortgage Advisor Tel: 905-630-3129 Email: steven.damas@themortgagesite.ca Toll Free: 1-877-545-5755 … mortgage news consolidate refinancing debt rate broker help refinance bank loan lender …
Help answer the question about best home rate refinance
I want to refinance my home and lower my interest rate, Who is the Best Mortgage Company that I can TRUST!?About Author
Joshua Suffie runs the website Refinancing Right which focuses on mortgage refinancing information. Learn everything from the different loan types to picking the best mortgage broker
Article Source: ArticlesBase.com – When Is The Best Time To Refinance?
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September 24th, 2009 at 11:10 am
With your situation you're working with an investment property and will take a hit on rate because it's not your primary residence. But the rates that are available to you depend on your credit score, how much equity you have, mortgage payment history, and how much debt compared to income that you have.
I work for a company called MYLOAN and our rates are very competitive and service is top notch. If you'd like a free no obligation consultation you can fill out an application on my website, email me, or give me a call. I wish you luck in your search for financing.
September 24th, 2009 at 12:26 pm
The easiest way in my opinion is to go to a few different brokers at least 3 or 4 and ask for a Good Faith Estimate. They'll take your info and determine what rate, etc they can give you. Then compare those and see who has the best deal. Don't hesitate to pit them against each other people do it all the time. If you like one person in particular but they have a lesser deal show them the other GFE and see if they can match it, sometimes they can, sometimes they can't but it's worth the shot. And finally, if you think somethings too good a deal (say 4.5% interest with no closing costs) it probably is. Finding a great broker is just as important as the rate because they will help you through the whole process and make sure you don't get hurt in the end. Good luck.
September 25th, 2009 at 6:50 am
Shop around. Call at least two banks, two national lenders, two brokers, and a credit union. Make sure everyone knows you are calling around.
So many of the people who got bad loans over the past few years set themselves up by only contacting one loan originator. When I purchased my present home – about a year ago – the company I had my old mortgage with quoted me 7.5%. By calling around, and making it clear I was calling around – I wound up closing at 5.5%.
The loan companies need your business. Make them compete for it. Let them know you're shopping and you will get the lowest offer.
Before you start calling, know your credit score. When you call for a quote, tell them your credit score, how much savings you have (reserves), you monthly income, and your monthly debt. While the quotes won't be binding – don't let them pull your credit report, tell them you're just shopping – if you start working with someone and they start to push the rate up, you'll know who to go onto next.
Good luck.
September 26th, 2009 at 5:33 pm
Whether or not you personally can do any kind of refinance depends on your credit, income, and the value of the home.
If you're asking if no or low closing cost mortgages exist? Absolutely. Typically the rates are a little bit higher, but honestly your rate is really high right now, it should still be significantly cheaper than 12.75 even with the bank paying the closing costs.
By the way check your Adjustable Rate Rider from your original mortgage. Odds are there are caps on how much and how often your rate will adjust. If you're paying this loan off in the next few years it may not even be possible for it to adjust up to 18.75 that quickly.
September 27th, 2009 at 1:47 am
just move out of baltimore it's cheaper
September 27th, 2009 at 3:57 am
Try http://www.bankrate.com They have most everything concerning money and finance.
September 27th, 2009 at 11:22 am
If I were able to predict the market I'd be a millionaire a few times over. However the likelihood of a rate better than 6% on a jumbo is very unlikely as jumbo money is very difficult and expensive to get these days.
September 27th, 2009 at 10:07 pm
Just because a company is advertising that they offer a 5.5, chances are your not going to qualify for it. That is a just a marketing trick to get you interested. They best way to tell what kind of rate you will qualify for is based on three simple questions.
1. On a scale of 1 to 10 what is your credit score like?
2. Have you had any 30 day lates or more on your mortgage in the past two years.
3. What is the loan to value on the home? Meaning how much do you owe against how much the home is valued at.
Only people with 700+ credit scores with low LTV will qualify for that rate in today's market.
Good Luck!