Refinancing Your Mortgage

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Home Refinancing versus Line of Credit
Refinancing vs line of credit are two popular options you have when deciding the best way to take equity out of your home. Sometimes it makes sense to establish a line of credit. But in other situations it's better to get a cash back refinance mortgage loan.

You can find out which loan is best for your situation by doing some simple math. The amount of money you need to borrow and the l... Read refinance mortgage article



Saving Thousands When Refinancing My Home Loan
To save money, you must live in your house longer than the "break-even period" - the period over which the interest savings just cover the refinance expenses. The larger the spread between the new interest rate and the rate on your existing loan, the shorter the break-even period. The more it cost to get the new loan, the longer the break-even period.

But be careful. The break-even pe... Read refinance mortgage article



Refinancing Your Mortgage
Refinancing your mortgage can mean great savings for you and your family. Replacing your existing mortgage with a lower interest loan, changing the term of your loan, or even consolidating all your debts into this new loan could save you money, both monthly and over the life of the loan.

The rule of thumb is when interest rates are 1.5 to 2% lower than you are currently paying on your mortgage, it's time to consider refinancing.

Would Refinancing Be Worth It?

Refinancing can be worthwhile, but it does not make financial sense for everyone. There are a number of items to consider, such as how long you plan to stay in the house. Most sources say that it takes at least 3 years to fully realize the savings from a lower interest rate, given the costs of the refinancing.

Refinancing can be a good idea for homeowners who:

* Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan. * Want to build up equity more quickly by converting to a loan with a shorter term. * Want to draw on the equity built up in their house to get cash for a major purchase or for their children's education.

What Are the Costs of Refinancing?

Costs can vary significantly from area to area and from lender to lender, so the following are estimates only. Your actual closing costs may be higher or lower than the ranges indicated below.

Application Fee $75 - $300. This charge imposed by your lender covers the initial costs of processing your loan request and checking your credit report.

Appraisal Fee $150 - $400. This fee pays for an appraisal, which is a defensible estimate of the value of the property.

Survey Costs $125 - $300.

Homeowner's Hazard Insurance $300 - $600.

Lender's Attorney's Review Fees $75 - $200. The lender will usually charge you for fees paid to the lawyer or company that conducts the closing for the lender.

Title Search and Title Insurance $450 - $600. This charge will cover the cost of examining the public record to confirm ownership of the real estate, and the cost of an insurance policy.

Home Inspection Fees $175 - $350.

Loan Origination Fees 1% of loan. The origination fee is charged for the lender's work in evaluating and preparing your mortgage loan.

Mortgage Insurance 0.5% - 1.0%. Depending on the type of loan you have and other factors, another major expense you might face is the fee for private mortgage insurance.

Points 1% - 3%. Points are prepaid finance charges imposed by the lender at closing to increase the lender's yield beyond the stated interest rate on the mortgage note. One point equals 1% of the loan amount.

Prepayment Penalty. A prepayment penalty on your present mortgage could be the greatest deterrent to refinancing. The mortgage documents for your existing loan will state if there is such a penalty. In some loans, you may be charged interest for the full month in which you prepay your loan. In the future, always make sure there is NO prepayment penalty.

In Conclusion

A homeowner should plan on paying an average of 3 - 6 % of the outstanding principal in refinancing costs, plus any prepayment penalties and the costs of paying off any second mortgages that may exist.

Whether or not that is a wise decision is purely a numbers matter.

Visit Refinance Mortgage to learn more. Ron King is a full-time researcher, writer, and web developer. Copyright 2005 Ron King. This article may be reprinted if the resource box is left intact.

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Mortgage Refinance - Should You

With the historic lows of mortgage rates, many people are finding it to be a great time to look into a mortgage refinance. Is this the right course of action for you, though? This is a decision that only you can make, but it is one that you should weigh carefully. Mortgage refinance may be a good or a bad thing for you in the long run. Here is some basic information to help you.

- First, consider your current mortgage balance and interest rate. If you have a relatively new mortgage that has a higher interest rate than what is currently being offered, you may benefit from the mortgage refinance. But, if you have paid off most of that mortgage and only have principal left to pay, you may have to start all over again with a mortgage for your home. In this case, it may not be the best decision for you.

- It is also important to understand the terms of the mortgage refinance. If you know that you will be able to pay off your current mortgage in ten years, refinancing may pull it back to fifteen, twenty or even thirty years. In this case, it may not be worth it.

- Lastly, make sure to consider your payment. One of the benefits of a mortgage refinance is that you will likely be able to lower your monthly payment. But, again, you need to make sure that this is what you need it to be not just now but in the future as well. A lower mortgage payment now or a shorter term to pay it off?

In order to consider whether or not a mortgage refinance is right for you, you really need to pay close attention to the details of it. Is it a fixed rate or an adjustable? Will it provide you with the payment amount that you need now or will you be able to afford a little more per month to pay it off sooner? The ultimate decision in a mortgage refinance is up to you.

For more information please see http://www.mortgage-refinance-info.co.uk


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1. Home Mortgage Refinance - Save Thousands on Your Home
2. Home Refinance - To Refinance or not to Refinance
3. Refinance Lender
4. Refinancing Home Loan - Is Refinancing Your Home a Good Idea
5. Mortgage Refinancing Companies
6. Refinance Mortgage Lenders - Using Online Lender
7. Refinancing Your Mortgage
8. Refinancing Your House - Time is Money With Mortgage Refinance Loan
9. Refinance Your Home and Payoff Debt
10. Home Refinancing vs Home Equity Loan

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