Refinance Home Loan: One Big Reason To Get One Now

With the decline in interest rates, it is the right time now to get a refinance home loan and lock in to the lowest interest rates in decades. Isn’t that one big enough reason to get a refinance home loan? You’ll have more cash flow that will make life easier.

Get It While the Going Is Low

The big news is here for all home owners with existing mortgages: Interest rates have declined!

Federal Reserve has entered a new rate-cutting period and interest rates have dramatically dropped. Now is the time for homeowners with existing mortgages to avail of refinance home loans at lower rates that spell more money for other important expenses.

You also have the option to shorten your loan term, but find out if you can even out the balance of fees that you’ll be paying during your new refinance home loan term.

Simple Formula

With the Federal Reserve entering a new rate-cutting period, the interest rates have dramatically dropped.

A refinance home loan now means you’re opting for a lower interest rate, which will lower monthly payments. There’ll be cash in your pocket which you can save towards your taxes.

Other Reasons to Get Another Home Loan

Also, over the years, the kids have grown and you’ll be needing cash for their college education. You can opt to get the equity you’ve built over time in your home and get a cash-out refinancing. You can put the money in the bank until the appropriate time you’ll be sending the kids off to college.

There are more reasons to get a refinance home loan, such as:

1. Time to switch from AMR to fixed rates.
2. Mortgage term can be shortened.
3. Home equity can be built faster.
4. There’ll be more cash flow.
5. Infusing additional capital to your business.
6. Going into a small scale business.
7. Remodeling your home.
8. Medical bills.
9. Paying off high interest loans.
10. Travel.

Getting the Best deal

As in all mortgage deals, you have to know all the necessary details for a successful refinance home mortgage. Shop for the best deal and get the mortgage company that offers a reasonable lower interest rate that will help you save on your mortgage and slice off years from the loan term.

It will be easy to get another loan from your present mortgage company. If your mortgage company has a higher interest rate compared to another company, ask them if they can offer the same lower rate. If they cannot give a favorable offer, check out the other company.

Here are some reminders before you leap into a new loan and get a better deal:

1. Do not be lured by teaser rates, you will be paying add on fees to your monthly payments.
2. Ask the company upfront about the fees you have to pay for processing the loan up to the closing fee.
3. Ask the company if they penalize early payoff.
4. Go for fixed refinance home rate rather than an adjustable rate.

And lastly, get a refinance home loan now that you’ve got one big reason to get it.

Posted in Uncategorized | Comments Off

Refinance Home Loan: Dos And Don’ts

Lending companies need your business. If you are taking out a refinance home loan, check out what your current mortgage company can offer. Do not get a new loan from them unless they can offer you lower interest rates. On top of this notice, observe cautionary tips to get yourself a better deal on your new loan.

Getting A Refinance Home Loan

It is not always profitable to get a new loan with the same company if they cannot offer lower interest rates and they charge you more fees for the second loan.

Before getting a contract with a new lending company, know the following:

1. Is the service transferable?
2. Will you be going through the set up process anew?
3. Will you be paying another fee?
4. When will the current company forward the additional payments toward your refinance home loan?
5. Can you expect savings after the fees and costs involved in the new loan?

Traps to Avoid With a Refinance Home Loan

1. Do not get a new loan from your current company if they cannot offer lower interest rates like the other company. They may offer you a mortgage equivalent to your old loan in addition to your new loan contract.

2. Never drop a low interest rate loan for a higher interest loan. Look at the Annual Percentage Rate of the new loan. This should be lower than the rates stipulated in the previous loan. Consider also the insurance costs, closing cost, and other fees charged upfront. A lower monthly payment should not be enough enticement to get a refinance.

3. Avoid the offers of very low interest rates as these will balloon later to rates you cannot afford. Steer clear of variable rates that may sound attractive for the low interest rates charged during the early part of the loan.

4. Don’t fall for tax advantages offered for debt consolidation purposes. Review your personal tax position and analyze how this will be affected. Unless you diligently itemize your deductions, the tax write-off for your mortgage interest is useless.

5. Avoid spurious lending companies. You will know them by the suspiciously low rates they offer.

6. Don’t forget that you have three days to cancel your loan. This offers you the chance to get out of a loan that is disadvantageous to you. It is your house that is on the block, so be vigilant. Inform the lender that you have changed your mind before the deadline.

Payments to Prioritize If You Have A Refinance Home Loan

Be smart. Even if you have a refinance home loan to pay monthly, prioritize important payments to get yourself out of trouble.

Always be up to date with your Council Tax payments or you might end up in prison for this neglect. For your home and office, pay gas and electricity bills on time – suppliers can disconnect your lines anytime. If you are paying business rent and rates and insurance, give these your attention. When the tax month comes, pay your taxes diligently. Put your savings from your lower refinance home loan monthly payments towards your taxes without having to dig deeper into your funds.

Armed with these dos and don’ts you can check out the offers of the different lending companies.

Posted in Uncategorized | Comments Off