Wednesday, January 9, 2008

Mortgage Loan Refinance [By Ahmad A Hassam]

Mortgage loan refinance can be beneficial but you need to understand the terms of the deal and be very careful when choosing a bank. Refinancing can save you money only if you make an informed and educated decision. Most people want to refinance a mortgage loan to get interest rates low. But most end up paying more money long term than they should otherwise. Don't simply walk into a bank and sign a mortgage refinance with a low interest. It may not result in saving in the long term. Banks won't tell you every aspect of a refinance deal. In case you are ignorant, you might end up with a wrong deal that you may regret for a long time.

Do You Need To Refinance?

The first question you need to ask," Do I need to refinance?" People go for refinancing when they think that their interest rate are too high and that they have too much debt. Banks will give you information on possible course of action. They will leave it on you to make your final decision. Banks don't lie but they also don't tell you everything. It may withhold some information. Banks love to let customers make bad decisions. Some banks simply want profit at the expense of their customers. So be vigilant! First you need to do your homework. You can easily find many mortgage calculators online. Learn how to use one. Do a sensitivity analysis by changing the various variables. Discuss each possible course of action with your financial advisor.

Don't Be Uninformed

Be informed about all aspects of your financial situation before you walk into the bank. Banks like to take advantage of the uninformed. Some banks want their customers to be uninformed because the uninformed customer poses no threat and can be easily manipulated. An uninformed individual may accept the banks offer simply because the interest rates are lower. However, some banks try to give lower interest rates for refinancing but let the consumer end up paying more over the life time of the loan. Be careful, banks can expose you as a borrower to greater risks than you had with your previous mortgage with a higher risk loan.

Understand The Agreement

It is your duty to read the fine print of the refinance terms offered by the bank. Go through every line of the agreement . You might find something that you don't like and they will have to change it. Ask questions. All aspects of the new loan have to be made available to you. You as the customer just have to seek it. Most people simply look over the terms of a new loan briefly, only looking at the interest rate. They then sign on the dotted line. Banks won't tell you but it is always a good idea to understand the loan more intricately than even the bank itself. Don't simply skim the terms of a loan because in the end you cannot blame the bank for signing an agreement that had everything written into it.

Get The Upper Hand

Bank as your financial advisor is obligated to offer information but sometimes will provide it in a cursory manner. So ask them to explain if you don't understand. Knowledge is the single most important thing to have when refinancing. If you know what to watch out for when refinancing and what banks have to tell you, then you will have the upper hand. Having the upper hand will allow you to refinance your mortgage loan in a way that is best for you financially.

More Articles On Mortgage Loan Refinance

Mr. Ahmad Hassam has done Masters in Public Policy from John F. Kennedy School of Government, Harvard University. Visit his blog for more articles on mortgage, insurance, real estate, debt consolidation, credit, personal finance, internet marketing, dating, poker plus jokes at

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Tuesday, January 8, 2008

Save Money Through Home Mortgage Refinancing in Five Easy Steps [By Alan Lim]

Home mortgage refinancing has been most sought after in the recent years. It is an easy way to get some cash while at the same time a great opportunity to reduce your monthly interest and monthly payment. So, how do you go about this? Well, here are five steps to get you started:
1. Find out whether getting home mortgage refinancing now is a good idea. You should only refinance at the right time for the right reasons. Your interest rate must be lowered by at least 2 or 3%. You should also consider factors such as the remaining balance of your existing mortgage, the number of years you still need to pay for it, your current credit record, your monthly payables, and the time you intend to stay in your home, and so on. Remember that to get the best deals, home refinance should be done at the right time and at the right circumstances. If not, you may end up paying more than you should have with your existing loan. For example, if you plan to move in a year or two, refinancing would be meaningless and can prove to be a waste of time, effort and money.
2. Use a mortgage calculator (readily available online) to help you decide quantitatively whether a deal is favorable enough. Compare the amount of money you need to pay for your existing loan with the new monthly payment terms you need to pay for refinancing. You should also include closing costs, points, escrow fees and other charges. Subtract the monthly payment you make on your current mortgage with that of the refinanced terms to get your monthly savings.
3. If the numbers and the circumstances appear very favorable to you, start looking through home mortgage refinancing options. It is very important that you choose your lender and the new mortgage terms. There are a lot of mortgage lenders available, each providing different set of terms, interest rates, fees and charges. What you want is a term that fits your financial objectives well. Choose whether you would like to refinance to a variable interest rate or to a fixed one depending on your needs. You should also determine how much you need to help you get the best deal.
4. Pay close attention to closing costs and fees. Fees differ greatly from one lender to another. If this is a factor for you, make sure you get some free home mortgage refinancing quotes from various lenders and choose accordingly. Note that some lenders impose more points with lower interest rates. Make sure you weigh things well before deciding.
5. Try to limit your new mortgage loan terms to not be longer than the terms left in your existing mortgage. You do not want to end up with lower payments but with twice as much longer term. When it adds up, you may end up paying more than you originally intended.
Home mortgage refinancing is an excellent way to cut down on your mortgage payments. However, you have to make sure that you choose the best deal given your financial circumstances.
Thinking about home refinancing but you just don't know where to start? Let the experts help you get the best deal by visiting Home Mortgage Refinancing or Home Mortgage Refinance now.
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Monday, January 7, 2008

Seeking Out Mortgage Advice [By Michael Sterios]

Whether you are a first-time-buyer purchasing your first home or an existing home owner looking for a remortgage product, it is important to seek out expert mortgage advice to ensure you secure the right home loan for your personal circumstances.
Evolution of the UK Mortgage Market
The UK is often referred to as having the most sophisticated mortgage market in the world. A wide variety of products are now available from dozens of lenders where only a few lenders existed before.
Mortgages are now available to people with all kinds of credit histories and employment situations and are also available to purchase property for investment purposes. This situation is vastly different to several years ago when only a few lenders offered prime mortgage products to people with stable employment.
The UK home loan market has therefore evolved considerably in only a few short years and the need for expert advice has never been greater. Such advice on is no longer the sole domain of overbearing bank managers and because of this the financial intermediary industry has flourished.
Advice Providers
Because of the increased sophistication of the market it is wise to seek advice from either an independent broker or financial adviser when searching for your next home loan.
Independent brokers have specialist software that can scan the entire market in minutes, helping them to provide quality mortgage advice that will help you choose the right product for your individual circumstances. The right advice can help you save money over the term of the loan, whether it is for a buy-to-let property or your own home.
Likewise, independent financial advisers (IFAs) can sometimes provide advice on mortgages as well as ancillary finance products such as insurance and pensions. Often these products go hand in hand with home loans so it can be a good idea to receive advice from an IFA if you have one already.
If, for example, you are looking to purchase or remortgage a buy-to-let property your IFA may be able to provide you with advice on which products to apply for in addition to any investment advice they may provide to you.
If you are seeking a mortgage for your own home your IFA may be suitable for providing you advice on both your home loan and your home and contents insurance. You may also use the opportunity to receive advice on life assurance product or mortgage and income protection insurance.
Where to Seek Mortgage Advice
Finding a broker or IFA who can offer you mortgage advice has never been easier. There are thousands of registered brokers and IFAs in the UK, many of whom advertise on the internet and in the local press. There is also a wide range of online and offline directories which contain listings of mortgage brokers in most local areas. However, with the ease of communicating over long distances these days, it is not always necessary to receive advice from a local mortgage broker.
You may also seek out referrals from friends of relatives. Mortgage advisers and IFAs sometimes specialise in different fields of financial advice which means that not all advisers will be suited to providing you with information on the specific issues you are seeking advice on. A positive referral from a friend or relative may therefore save you the time and hassle of finding an adviser yourself and reduce the risk of inappropriate advice.
To get expert Mortgage Advice on UK mortgages visit UK Mortgage Source today
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