Saving The Most Money With The Lowest Mortgage Rates

February 17th, 2009
Ian Koch asked:


For many years now the mortgage interest rates have been low. This has been very profitable for home owners or other people with mortgage loans. We don’t know how long this low rent period will last but the longer the better for home owners with mortgage. But even when the interest market is low the interest rates varies. Some people are still sitting with and are paying each month on a mortgage they took years ago, while the rates were much higher than today. All they have to do is refinance their mortgage and their interest rates will be much lower.

When you are searching for a mortgage, one of the most important things that you should consider is the mortgage rates. These are the things that will decide whether you can comfortably deal with your payments, or if they will always be a milestone around your neck. With house process on the increase, the amount of money you will have to repay can seem never ending.

The lower the mortgage rate, the less you will have to pay in monthly instalments. This can be important if you are paying back $600 a month; any small reduction can seem fantastic.

Low interest rates often keep the economy running, as people who already have mortgages take advantage of the low rates. They also help to allay people’s fears about buying a house.

Although there are many sites offering you the lowest mortgage rates, the questions that you need to be asking are: do we intend to stay here long? If you are planning to stay in the house more than a couple of years, then the long term paying and amortizing of your mortgage may be more important than a lower mortgage rate. If you have to pay extra on your mortgage to get the lowest mortgage rate, then it is not a good deal.

If you have not had much joy with finding a lower mortgage rate, then you may consider taking out a normal mortgage, and paying the sums back with an online credit card. These can offer lower interest rates, but it is also more likely to have payments raised above the rate of inflation, and you still have to pay off your mortgage.

Ideally, the best situation would be for your bank to offer the lowest mortgage rates; however, this never happens, and if you want to find the lowest interest rates, then you will have to shop around on the internet.



Timothy

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Mortgage Rates, Loans And Financing

February 3rd, 2009
Keith George asked:


Very low mortgage rates have been instrumental in increasing the purchasing power of millions in the US, Europe and around the world. For one year mortgage rates are on the rise and home prices leveling out. Foreclosures are becoming more common, especially in the American Midwest, but it is still on a low level. We can now expect a gradual rise in mortgage rates the coming year. The 30-year rates will likely continue to rise in the upcoming months, but should not go past 7% in the US. In Europe the 5 year interest rate is around 5-6%. So if you plan to get a fixed rate loan, you should act quickly because mortgage rates are predicted to push past 7% in the US over the next few weeks.

The second mortgage rates on high loans to value loans above 90% on real estate investment properties can come close to 20%, even if you have a very good score. It might be a good time now to refinance your home or get a mortgage loan with attractive rates. Search the Internet and you will find a lot of online companies offering low mortgage rates all over the country.

A survey that was performed recently shows that there is a increase of foreclosure rates and delinquent mortgage payments across the country. Also lenders, just like consumers, feel the effects of a slowing economy and rising mortgage interest rates. No wonder we hear lots of discussions about rising mortgage interest rates.

A forty-year mortgage rates offer lower monthly installments, which suits the needs of first time home buyers as well as borrower who otherwise do not qualify for any other option. Of course there are many factors that can affect the mortgage rates but mortgage rates should be relatively stable for the foreseeable future.

Some persons prefer to have a fixed mortgage payment to maintain their peace of mind. Then you should have it and if you took the loan a couple of years ago you certainly made the right choice. For others there are a wide range of options currently available.

With an adjustable rate, the rate of interest is linked to factors like the Prime Rate. There are also other variations of the adjustable interest rate. As said before, if the market appears to be on a longer rise, locking in a fixed rate now can save you money in the future.

It is impossible to mention the rates individually, as there are a wide number of factors and statistics involved and they vary from day to day. It also depends on when you happen to read this article. Often the credit companies are also skeptical in offering the forty-year mortgage rate option to their customers as there are other existing ways of reducing monthly payments.

Searching on the Internet, using lowest mortgage rates as keyword, will provide you detailed information on Compare Low Mortgage Rates, Lowest Commercial Mortgage Rates, Lowest First Mortgage Rates, Lowest Fixed Mortgage Rates and more. That is an excellent way to get the basic facts for the time being and will give you a better understanding of which plan to choose.



Jerome

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Is A Refinance Mortgage A Good Idea ?

January 23rd, 2009
MIKE SELVON asked:


Very few people are able to own a home without utilizing mortgage home loans. These loans are, for most people, the biggest debt they will ever be encumbered with and the process of getting a home borrowing is often one of the most stressful things people experience. And, when it comes time to refinance mortgage loans, the same also holds true.

Just about anyone who purchases a house is pretty much destined to labor under the weight of mortgage payments for at least 30 years, which is the life of the most common mortgage loans. Sometimes, the length of a home loan can be reduced or stretched out even longer depending on the needs of the homeowner and what they are trying to accomplish through their mortgage refinancing.

There are any number of reasons why people refinance mortgage loans. One very common reason is divorce. In many cases one person moves out and the other wants to remain in the home. When this happens it makes a lot of sense to get the mortgage refinanced if possible.

Refinancing a home loan in this situation will assure that the house is only in the name of the one staying in the house. It will also serve to pay off the previous mortgage so that the other person is no longer obligated under the terms of the old home financing arrangements. In many cases, the house refinancing is taken out for an additional 30 years to make the payments manageable for the newly single person.

One of the most popular reasons why people choose to refinance mortgage home loans is because there has been a drop in loan rates in the home financing market. Often a family can end up saving hundreds of dollars every month even if the interest rates have only dropped half a percentage point, depending on the size of the loan. This often makes it an easy financial decision to spend a few thousand dollars on loan fees in order to save that much each month.

Many times the home loan lenders offer special incentives to encourage people to refinance their mortgage by waiving the closing costs, appraisal fees and other costs associated with refinancing. In these cases, it is simply a matter of doing the paperwork and then enjoying the lower monthly payments.

People often take advantage of the combination of lower interest rates and no closing cost loans to refinance their mortgage for a shorter time period. Many times people who have 20 to 25 years left on their original mortgage can get a refinance loan with lower interest rates. They take a 15 year mortgage and end up paying about the same monthly payment. This way they can cut many years off the life of the mortgage and will be able to enjoy a house that is free and clear much sooner.

Another reason why people are motivated to refinance their mortgage is to pay off their other debts. They can accomplish this if they have gained a good amount of equity in their house. When doing their refinancing, they can borrow more than the balance of the original home financing.

When people use part of the proceeds from their refinance mortgage loan, this is often considered a debt consolidation loan and it is a smart way to manage debts and pay them off sooner.

Since the high interest consumer loans are being paid off with a lower interest, the payment will go down, or the borrower can pay the same amount they were accustomed to paying and just pay the debt off that much sooner. Another benefit is that the interest on the refinanced mortgage is tax deductible whereas the consumer loan interest is not.



Bertha

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Be Careful When Comparing Mortgage Rates - 10 Things You Probably Didn’t Think of

January 21st, 2009
Sandra Wellman asked:


Most people know it’s important to compare mortgage rates before they purchase or refinance a home. Some may even know to compare fees, points and other costs associated with purchasing or refinancing their home but, there are some things you didn’t think about or just don’t know. Here they are:

· You may not be able to get or even want the advertised rate. The super low rate may be for a 2-week lock in period. Unless the lender can guarantee you will close escrow in 2 weeks, you need to find out what rate you can get for a 30-45 day interest rate lock, or whatever you feel comfortable with.

· You should try to avoid having your credit run until you’ve decided between 2-3 lenders. You can request a pre-approval from 3-4 mortgage companies, some of whom will get rates quotes from several lenders and give you the best 4, giving you a total of 10-12 quotes. Note that these are only estimates if they haven’t run your credit. Be sure to read the terms for the pre-approval estimate.

· Ask the lender if they will provide your credit score when they do run your credit. You should have an idea of what it is, but it’s nice to know what the recent score is as this will affect the interest rate you get.

· Beware of the “no cost loan”. It will probably have fees included in the loan, increasing the interest rate and simply not cost you any out of pocket costs. Even paying a ¼ of a percent higher is not worth it to save a few hundred dollars or even a thousand. If you don’t have the money, try to get it somehow if you can.

· Ask for all the fees you will have to pay before having lenders run your credit. Some may not want to give it to you. The good/honest ones with nothing to hide will, at least as much as they can before running your credit. Some fees may depend on your credit score.

· Be sure you can prepay the loan or have a bi-monthly plan set up if you want to without additional charges.

· Find out how often they re-calculate the outstanding mortgage interest. You want them to do it daily or at least monthly, but definitely not yearly. What if you want a bi-monthly mortgage later on or you get a large bonus and want to apply a little to the mortgage; if they don’t re-calculate often, you’ll pay the interest on the old balance and not the new one. This can add up if it’s for a whole year.

· When shopping online for mortgage rates, be sure you are on a secure page when sending your social security number over the Internet. You should see a small yellow lock in the lower left corner of your browser window and an “s” next to the “http” in the URL area of the browser window.

· Another tip when shopping online for mortgage rates, find out if they process everything online and send you an email or if they have to call you with the quote. Try to get the former. You don’t really want a bunch of people calling you to try to talk you into a loan. You do want the option to call them and ask them questions without having to wait.

· Sometimes you can get a small percentage point off if you have your mortgage automatically deducted from your checking account. This is a good thing, just be aware with whom you are dealing with and what you are signing, read the fine print.

Buying or refinancing your home is important and will affect your life for a long time, so don’t take it lightly, be careful and be prepared, you’ll be glad you did.



Lucy

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mortgage rate predictions?

January 17th, 2009
jake the dog asked:


I am interested in refinancing on a fixed rate. Do you think rates will go up or down in the next 90 days? Why?

Frank

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Posted in Renting & Real Estate | 1 Comment »

Current FHA Mortgage Rate?

January 15th, 2009
billy asked:


I am supposed to refinance on Sunday from a fha at 6.5% rate to a 5.5. my payment is approx 1670 with interest and all and will be down to 1535 with the refinance. He stated that my escrow will be sent and I can keep it (1200) and i can skip my march payment which will basically give me 300 in the pocket. I didnt really want money back i just wanted my payments lowered by 250 or so to adjust for my other issues that occured. Is 5.5 30 fixed a good rate or will there be something with this stimulus that will drop housing to 4.5 or so. He also said I can refinance again after about 6months if the rates got lower, AM I BEING DOOPED? just so they can get a sale or does it pass the smell test. THanks.O my new mortgage is noe 228,000 it was 225,000. He did say that i could pay points but it would cost me the $3000 they giving me to just drop it .5% which is only about $60 bucks he says
when you mean mortgage rate you simply speaking of the cost correct or do you mean also the interest part because im currently paying about 1670 but I believe 200 of it is insurance and all the other stuff i get billed. I gross according to my base salary 4700(on the higher end) so that means i should qualify correct. I only had my home since septmeber(new construction townhome)…am i actually eligible for the new deal?

Victoria

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Do you have to pay any closing costs when you refinance your home?

January 2nd, 2009
Bigsky_52 asked:


I’ve been in my home for about a year, and with the fed cutting interest rates I’ve been thinking about trying to consolidate my two loans into one low interest mortgage. I’ve got 25% through Chase at 8.75% and the remaining 75% through Wells Fargo at 6.25%. I’m thinking about refinancing, but am wondering if I’d have to pay closing costs again. Does anybody know about the process involved? Thanks.

Donna

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Posted in Renting & Real Estate | 5 Comments »

If you are 2 yrs into a 5/6 Interest Only Mortgage is it best to refi to a traditional now or wait to the end?

December 31st, 2008
D S asked:


I am a first time homeowner and my primary homeloan is an Interest-Only 5/6 LIBOR ARM. It was explained to me
by both my real estate agent and the mortgage guy as a wise thing to do given that the Atlanta housing market
is ‘always strong’ and if you think you ‘might move within 5-7 years’. There was (and still is) a chance I may
need to move within that timeframe and it’s true Atlanta has been a hot market for quite some time(until now). So I decided
to go with it eventhough I wasn’t quite comfortable with the idea, but I wrote that off to first time home buying jitters and trusted the ‘experts’ I had.

So, I am wondering if you have this type of loan, what is the best way to protect yourself? Should I refinance to a 30 or 15 yr fixed rate? And if so, is it a situation of the sooner, the better or should I hang on until I near the end of the 5 year period? I am 2 years into my 5/6, so I have time before it begins its potential jump. My job is stable.

Agnes

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Posted in Renting & Real Estate | 4 Comments »

Is it a good time to refinance my home?

December 29th, 2008
Mi Mi asked:


I currently have an 80/20 loan. My first loan has an interest rate of 6.25% (30 year fixed) and my second has an interest rate of 8.875% (20 year interest only). I have been in my home for 3 years and I want to only want to have one mortgage. Is this a good time to refinance?

Stanley

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Posted in Renting & Real Estate | 4 Comments »

Home Mortgage Refinance - Understanding How Home Mortgage Rates and Final Cost Could Help You Save Money

December 29th, 2008
Julian Lim asked:


To avoid nasty and expensive surprises on your home mortgage refinance loan, review these tips and hints about the loan as well as home mortgage rates you are considering. They can save you money.

The cost of your home mortgage refinance package is typically made up of a number of components and the decisions made regarding these factors will affect the cost of the loan both at closing time and during the lifetime of the loan. The final cost of any loan is driven by the home mortgage rates, either fixed or adjusted over the course of time, by the closing costs as well as loan fees applied to the loan and by the length of time before the loan is paid off in full. Each of these factors can have a significant impact on the amount you pay for the use of the money to purchase your home.

Fixed or Adjustable?

A fixed rate for your home mortgage refinance means that the interest rate is set at the time of the loan closing and doesn’t vary due to rising or falling market conditions, economic aspects or other factors which are out of your control. An adjustable rate mortgage (ARM) on the other hand can change, particularly in instances where the interest rates are rising steadily or even drastically during a relatively short period of time. However, the ARM does have the advantage of costing less during the initial payment periods which can range from six months to two years.

Closing costs

Closing costs accrued during a home mortgage refinance can be displayed in a higher or lower interest rate and can be added to the principal to be repaid on the loan or can be required to be paid in cash at closing. Typical costs that are associated with closing are prepaid interest points, loan document fees, loan origination fees, title search, property inspection and property appraisals. Whether these are paid directly, or are rolled into the cost of the loan, they must be paid and must be considered as a cost of money.

Option ARM

An option ARM is a fairly new type of refinancing on the market and is more common with new home loans than with refinances. Choosing this type of mortgage loan, means that you are beginning the loan with payments that are less than the necessary cost to cover the home mortgage rates interest and principal costs. The difference between the payment amount and the total cost of the monthly payment is simply added to the principal balance and interest is charged against the revised amount. For a person with a flexible income this can be a great choice, but it requires self discipline to make additional payments when the income level is higher.

Loan term

Another component that is important in determining the final cost for the home mortgage refinance is that of the loan term. This is effectively the length of time before the mortgage is complete paid off. Obviously, the longer it takes to pay off the principal, the more interest will be charged and vice versa. At the same time, a longer loan term means that the payments on a monthly basis will be lower because a smaller proportion is going toward the principal.



Constance

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