| When
you need a quick and easy refinance
of your home or investment property,
try Golden Rule Mortgage. Our customers
have said that our speed of processing,
knowledgeable staff and aggressive programs
set us apart from our competition.
Below is some helpful information
to help you get started. Click here to get started
right away.
There many things to consider
when refinancing your home loan. The
fees associated with refinancing can
add up quickly, so many mortgage companies
will waive fees associated with refinancing
applications and legal fees. This fee
reduction can amount to large savings
for the home owner but may result in
a slightly higher percentage rate than
expected. It is important to talk about
your loan options with your loan officer.
Additionally, the amount of time you
plan to spend in your home will impact
your decision to refinance. Many mortgage
lenders will allow home owners who expect
to live in their home for a minimum
of three to five years to pay points
and closing costs upfront. This option
ensures the home owner obtains the lowest
percentage rate available.
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Saving money is important to
many consumers in today's economy and
refinancing your home loan is one way
you can lower your monthly payments.
A careful analysis combined with the
advice of your mortgage broker will
ensure that you make the right decision.
The costs associated with refinancing
are similar to those of obtaining an
original home loan and include legal
fees, application fees, settlement costs,
and other related fees. When refinancing,
additional fees will arise and they
can include a fee charged if you paid
off your original mortgage early, the
points associated with the refinance,
and the home loan interest rate. Typically
the cost runs between three and six
percent of the total amount of the home
loan. However, many mortgage brokers
can offer zero point loans and low-cost
refinancing. Therefore, even if your
rate change is less than one percentage
point, you may be able to save some
money by refinancing. Contact your home
loan advisor to discuss the various
costs and laws governing the fees charged
by mortgage companies and the potential
savings you can enjoy.
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The decision whether or not
to refinance has, in the past, meant
balancing the savings of a lower monthly
payment against the costs of refinancing.
In recent years, mortgage lenders have
introduced "no cost" and low-cost refinancing
packages that minimize or completely
eliminate the out-of-pocket expenses
of refinancing. With traditional refinancing,
the interest rate for your new mortgage
is often about 2 percentage points below
the rate of your current mortgage. However,
with the newer low and no-cost refinancing
programs offered, home owners can find
it valuable to refinance to obtain a
smaller reduction in interest rates.
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Many mortgage lenders will
offer a refinance package where you
refinance for more than the balance
remaining on your old home loan. In
the mortgage world this is called cashing
out. The economy has also caused interest
rates to drop recently which may allow
you to refinance your home without increasing
your monthly payments. The extra cash
that results from refinancing can be
used for many purposes; one of the smartest
ways to use these funds is to pay off
any loans with higher interest rates.
If you are in a positive position regarding
debt you may be interested in using
the money for a more enjoyable purpose,
such as building an addition to your
home. However you decide to spend the
money, your mortgage broker can help
you through the process.
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When home owners make the decision
to refinance their home loan they must
decide which interest rate will work
best for their situation. There is typically
a range of interest rates at different
amounts of points. Remember, a point
is equal to one percent of the loan
amount. When you work with you your
home loan representative you will be
able to analyze the different interest
rates and related points, which can
save you money. Some combinations of
interest rates and points may cause
your monthly payment to increase though.
Be sure to discuss all options with
you home loan advisor before making
a decision.
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The costs associated with refinancing
are similar to those of obtaining an
original home loan and include legal
fees, application fees, settlement costs,
and other related fees. When refinancing
additional fees will arise and they
can include a fee charged if you paid
off your original mortgage early, the
points associated with the refinance,
and the home loan interest rate. Typically
the cost runs between three and six
percent of the total amount of the home
loan.
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Refinancing makes sense for
many of our clients because refinancing
can result valuable savings. Now is
also a good time to refinance for a
second time. The timing is important
because when interest rates are falling
quickly you can reduce your monthly
payments even further. Your mortgage
brokers will also help you understand
the tax write off associated with a
second refinance. The money that clients
are saving can be used to build emergency
cash funds, build additions onto their
homes, or they can save it for a child's
college fund.
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Home owners have two rate options
when refinancing their home loan, fixed
rate mortgages and adjustable rate mortgages,
often referred to as ARMs. ARMs are
attractive in today's economy because
they offer very low introductory rates
but due to financial market instability
these rates can jump quickly and homeowners
may find themselves paying more than
they had bargained for. Adjustable rate
mortgages are not always unpredictable
though. Homeowners who know the length
of time they plan to stay in their home
may secure an ARM for that specific
amount of time, which will save the
homeowner money and avoid rising payments.
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Mortgage brokers are knowledgeable
of the laws governing taxes that are
related to mortgages. Many homeowners
find the tax issues related to the home
loan refinance process confusing, but
your mortgage broker will guide you
through the process. To explain briefly,
the Internal Revenue Service (IRS) has
ruled that interest paid for refinancing
must be deducted over the life of the
loan. However, if the home loan is being
used to make improvements to your house,
the borrowers may be permitted to deduct
a portion of the interest right away.
The exact tax laws concerning refinancing
are complex and the details should be
discussed with your mortgage broker.
The IRS website, www.irs.gov, may also
be helpful when gathering general information
on the subject of taxes and refinancing.
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