Refinancing a Mortgage (By David Cunningham)
Some people are very fortunate and wind up hitting the mother load by finding a timely deal with a mortgage company, obtaining a lower than typical market rate mortgage loan. Low rates are the holy grail of house buying and refinancing. If you’re a normal, every day working person, then getting a desirable mortgage rate is easier said than done. To qualify for prime rates, you’ll need your home to be in very good shape, have a steady job, and clean credit. In essence, you need to be a safe risk.
When it comes to refinancing your mortgage, the process isn’t always as cut and dry as one would hope. You should take some time to decide when it is really the right time to walk through this process. Too many people jump the gun thinking they’ll get their debts paid off with lower mortgage payments, but that isn’t always true. Your financial history will surely be taken into account by the lending institution, and if it’s worse than it was when you first applied for a mortgage loan, you may be disappointed by their response.
Refinancing can be a smooth process, especially where the lender already knows you and doesn’t need to research further on your financial habits or your property. Also, it is beneficial to refinance through the company that provided your existing mortgage because you already have a working relationship with them. The company does not need to be as concerned about their risk of refinancing a current, reliable customer.
So timing is the key. There are several considerations to weigh, such as lower rates from other companies. It really boils down to your intent. Do you wish to refinance your current mortgage to save on monthly payments, or rather do you want to remodel or repair your home to increase its value? If it is the latter, then a separate, additional loan taken against the equity in your home may be preferable to refinancing your original mortgage loan. Factors such as these should weigh on your decision before looking seriously into refinancing. And by taking your time, you can consider alternative loan options offered by the same - or even a different - finance company.
Sometimes people get their mortgages at very high interest rates, perhaps due to past bad credit, or perhaps just bad economic timing. However, if they have built up a good credit rating through the years and can consequently obtain an interest rate at least two percent less than their current rate, then it is a good idea to refinance.
Once you make a final determination, be sure to research the methods, current rates, and the lending institution prior to your initial meeting. As professionals, their knowledge may sway you to make an expensive financial decision that is not clearly understood in your own mind. You may be offered a number of options, but it is up to you to knowledgeably choose the best which satisfies your real needs.
For practical debt & credit assistance information, please visit http://www.debt-credit-assistance.com, a popular site providing great insights concerning how to address your issues and worries related to nagging debt struggles.
Article Source: http://EzineArticles.com/?expert=David_Cunningham
http://ezinearticles.com/?Refinancing-a-Mortgage&id=777671
When it comes to refinancing your mortgage, the process isn’t always as cut and dry as one would hope. You should take some time to decide when it is really the right time to walk through this process. Too many people jump the gun thinking they’ll get their debts paid off with lower mortgage payments, but that isn’t always true. Your financial history will surely be taken into account by the lending institution, and if it’s worse than it was when you first applied for a mortgage loan, you may be disappointed by their response.
Refinancing can be a smooth process, especially where the lender already knows you and doesn’t need to research further on your financial habits or your property. Also, it is beneficial to refinance through the company that provided your existing mortgage because you already have a working relationship with them. The company does not need to be as concerned about their risk of refinancing a current, reliable customer.
So timing is the key. There are several considerations to weigh, such as lower rates from other companies. It really boils down to your intent. Do you wish to refinance your current mortgage to save on monthly payments, or rather do you want to remodel or repair your home to increase its value? If it is the latter, then a separate, additional loan taken against the equity in your home may be preferable to refinancing your original mortgage loan. Factors such as these should weigh on your decision before looking seriously into refinancing. And by taking your time, you can consider alternative loan options offered by the same - or even a different - finance company.
Sometimes people get their mortgages at very high interest rates, perhaps due to past bad credit, or perhaps just bad economic timing. However, if they have built up a good credit rating through the years and can consequently obtain an interest rate at least two percent less than their current rate, then it is a good idea to refinance.
Once you make a final determination, be sure to research the methods, current rates, and the lending institution prior to your initial meeting. As professionals, their knowledge may sway you to make an expensive financial decision that is not clearly understood in your own mind. You may be offered a number of options, but it is up to you to knowledgeably choose the best which satisfies your real needs.
For practical debt & credit assistance information, please visit http://www.debt-credit-assistance.com, a popular site providing great insights concerning how to address your issues and worries related to nagging debt struggles.
Article Source: http://EzineArticles.com/?expert=David_Cunningham
http://ezinearticles.com/?Refinancing-a-Mortgage&id=777671
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