Refinance Mortgage Loans ? How To Get Best Refinance Mortgage Rate [mortgageprotectiontips.blogspot.com]
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The formula to refinance mortgage loans is simple. If you save more to refinance mortgage loans, than what are the expenses from the refinancing, then it will be a smart move.The basics, before you start, is to know, whether you have a variable or fixed interest rate.
1. The Economy Moves The Interest Rates.
When you think to refinance mortgage loans, you will notice, that the economy moves the interest rates, because the interest is the price for the money, and when the demand of money, i.e. loans, decreases the price will decrease also.
The ideal timing to refinance mortgage loans is the economic downturn, after the interest rates have fallen and the banks have difficulties to sell loans. Then they will be responsive to listen to your ideas for the home mortgage refinance.
2. How Much Lower Should The New Interest Rate Be?
When you refinance mortgage loans, the process can bring extra costs to you. You have to calculate carefully, whether the lower rate will compensate the extra costs and how long does it take. A rule of thumb says, that you should get at least 2 % reduction in the interest rate, before the refinancing is reasonable.
3. Different Mortgage Types.
The mortgages are not all equal. Usually the short term mortgages have lower interest rates, but the monthly payments are higher. On the other hand they offer smaller total costs, because the amount of years you will pay is smaller. Concerning the interests, you can choose between the fixed rates and the variable rates.
Now if your financial planning horizon is long, maybe life-long, and you want to live in your house for a long time, maybe the fixed rate is reasonable.
At least it will be secure, because you know, how much the loan costs will be. The variable interest rate can jump suddenly and this may cause problems to you. During the financial crises and long time after that, the interests are on a historically low level, but that cannot last for ever.4. The Origination Or Discount Fees.
These both are fees, which you have to pay to the lender, when you close the deal. If you will refinance home mortgage loans, you have to pay these items. There are also zero cost or no cost mortgages, which do not have these fees, but the lender will most probably charge the amounts as a higher interest.
5. Shop Around.
It can happen that your current lender wants to keep you and will offer a good deal. But that you cannot know untill you take quotes from several lenders. The online comparison sites offer great services and you will get the quotes quickly.
Related Refinance Mortgage Loans ? How To Get Best Refinance Mortgage Rate TopicsQuestion by makeitup22: Where can I find the best HELOC rates to refinance my second mortgage? My current rate is near 10%, and I'd like to find a HELOC rate of prime minus 1%, no fees, and accepting a LTV of 90% Best answer for Where can I find the best HELOC rates to refinance my second mortgage?:
Answer by BamaCraze
bankrate.com
Answer by h
I agree, www.bankrate.com has rates from many different lenders, and links to specific places to obtain loans, like lowermybills.com. the HELOC rates are around 7%, but I'm not sure if they will allow an LTV of 90%. http://www.bankrate.com/brm/rate/brm_loansearch.asp
Answer by Derrick C
Ya know, they all offer pretty competetive rates. However you do need to look at some of the fine print on the HELOCs. What are you planning on doing with it? How many transactions per month? etc... I teach people how to use a HELOC to pay off their homes faster. Out of all of the banks that I have worked with, I find that CHASE, WELLS FARGO, and US BANK offer great rates and very low hassle. So like I say, what you are going to do with it, should play a factor in selecting the propor HELOC.
Answer by Tim P
Credit unions (on average) offer much better HELOC rates than banks (see http://www.datatrac.net/CUNA/execonline.asp?view=product&pcode=C-0049) Pen Fed CU regularly has extremely good rates on both HELOCs and regular home equity loans. https://www.penfed.org/index.asp
Answer by J J
Take out a closed-end 2nd mtg with a fixed rate, helocs have variable interest rates and they work like a huge credit card since the balance never goes down. You won't get such terms as prime minus 1% on a 2nd mtg either, have you thought about what's the avg. rate you are paying for BOTH your 1st and 2nd mtg.? Consider refinancing and consolidating both mtgs into one.
Answer by
