An LTV (Loan to Value) Ratio is commonly examined by lenders before a mortgage is approved. A higher LTV is considered higher risk and often will have to pay more or get a higher rate.

LTV is calculated like this

If you make a mistake when you decide to refinance your home mortgage, it will cost you thousands of dollars in unnecessary expenses. Here is some quick refinance mistakes often made by homeowners.

1. The time frame is wrong.
Do not be in a time crisis when going through the refinancing process. You should always be able to walk away from any deal if there are last minute adjustments, or other added expenses or terms you do not like. It is not uncommon for people to just want to get the deal done instead of go through the whole process again, especially if you really need the money. A greedy lender will try to take advantage of this fact, and will often retract to the original terms if you threaten to leave. Unless everything is in writing by the lender, it is not official, so try to get everything in writing and signed.
2.Paying to much in closing costs and fees.
The closing costs of mortgage refinance lenders vary greatly depending on the company. Just 1 point in costs is equal to 1% of the amount of the loan. So if a lender wants to charge you 2 points on a mortgage refinance loan on a $300,000 loan, that amount is $6,000.
Try to get good faith estimates within 3 days of applying for a loan anywhere. Carefully compare these estimates from a variety of mortgage lenders. Make sure you are comparing the same numbers on every quote you get and narrow the list down from there. Make sure to check that each loan type is identical. Such as a 30 year adjustable or a 30 year fixed rate. These are two very different types of loans. Having 3. Not having a quoted mortgage rate locked in.
Your mortgage lender should ideally lock in your quoted rate with a lender. You should request a copy of the locked in rate prior to signing any kind of loan document. This way you will know what to expect in terms of any last minute surprises, and interest rate to expect.
4. Wrong type of loan
Make sure that you know what type of loan that you will be looking for and do not get the wrong type of loan for you. Many people choose what the lenders tell them to do which is usually not what should happen. These lenders make money by making you pay more.

Look here tomorrow for more home mortgage refinance tips

A mortgage is when you apply for a new secured home loan in order to pay off an existing (your current) mortgage. This loan is backed by your homes value. If your current mortgage rate is higher than the current mortgage rates that have taken a steep fall, then you may be a good candidate to consider a home mortgage refinance.

When Is a Home Mortgage Refinance An Option?
Usually a homeowner seeks a home refinance to secure a better rate or more favorable loan terms, compared to their current mortgage. How much you will save with the lower interest rate needs to be considered against the closing fees of a refinance, and any pre payment penaltys that may exist in your current mortgage.

The Benefits of a Home Mortgage Refinance
Ideally, you would gain access to extra money every month, while at same time lowering your monthly mortgage payment. This happens through refinancing a home mortgage, if conditions are right. Most likely, your home is the most expensive thing you will ever own. So typically a mortgage payment will be your biggest bill every month. A mortgage refinance uses the equity in your home to help lower your mortgage payments, and save money monthly.

A Lower Mortgage Payment From Lower Mortgage Payments
Odds are that when you purchased your home, the interest rates and housing market was extremely different than it is now. Things such as your credit rating, how much down payment you are able to put down, and the mortgage rates at that time. Since then the Federal Reserve entered a rate cutting period in which mortgage interest rates had a steep decline as a result, most likely much lower than your current rate.
Refinancing a home mortgage at a higher rate for one that is even 2% lower than yours will lower your monthly payment and free up cash every month for you to use as needed.

Refinance to Shorten the Length of Your Mortgage
Another option homeowners have is to shorten the length of their current mortgage. For example if you have a typical 30 year mortgage, and have payed your mortgage for say 8 years, with a mortgage refinance, you can switch to a shorter mortgage term. From 22 years in this case to 10, 15, or 20 years. This will save you thousands of dollars in interest payments over the course of the loan. Hopefully, since the mortgage rates are much lower now you can have rougly the same monthly payment, with less payments to have to make. This builds equity in your home faster, as you are paying it off and will be owning it faster.

Switch From a Adjustable Rate Mortgage to A Fixed Rate Mortgage.
With the interest rates near an all time low, the mortgage lenders lowe pushing very lucrative ARM (Adjustable rate mortgage) loans that look too good to pass up. Refinance your home to get into a more stable fixed rate mortgage before the interest rates start to rise back up, along with your adjustable rate. That means instead of your mortgage payment being the same every month as it would a fixed rate, the adjustable rate mortgage is advertised with an amazingly low rate, but that rate will no doubt increase at the slightest whimper in the housing market.

There are also other methods I have discussed in which you can do a "cash out" refinance, where you actually extend the mortgage, and use your homes equity against that extension to pocket the cash difference. This can be found on my site and discussed in detail.

There are a lot of homeowners who think that a mortgage refinance can be used as some kind of personal financial bailout, in case of emergency. If you count on your home getting you out of a tough financial situation, join the club. Some misconceptions about how a mortgage refinance should be used are widespread and common beliefs a lot of homeowners have. Here are some of the things that a home mortgage refinance should not be used, or considered, or counted on for.

Mortgage Refinancing Is Not An End All Solution To Financial Problems
This is probably the number one idea people get stuck in their heads. Basically, it is commonly believed that a mortgage refinance can be used to end all of your other financial woes. Generally, this homeowner believes that a mortgage refinance has helped them earlier in life and can help them again, and again. While this may hold true for the first, maybe second time, it will get harder and harder to find a lender who will work with you. The lender will see that their is another problem somewhere in your financial planning, that has casued you to be in debt so often, for so much. The rates will increase, the fees will increase, and the more you refinance the more you will put your home in risk of being taken by the bank should you miss a payment.

I can refinance my mortgage should an emergency come up.
Technically, it can be used as an emergency plan, but should not. You should not be getting into emergency financial situations often enough to be even comfortable considering a refinance, let alone execute one. Its bad habit, think of your home as the only thing that will be there forever. It should not just be used at your will to free burden that has been building up. You should act on financial irresponsibility in other ways.

I can refinance for any reason I want.
Again, technically you can refinance your home for any reason you want. However, you should only refinance to save on interest rates, or to shorten the length of an existing mortgage. Both of these reason are good financially sound reasons to refinance. Dont use a refinance to purchase non nesscary items or services. Use it only to better your long term financial position. Do not take it for granted you are putting your home one the line with a home mortgage refinance.

Refinance only if you can get a loan rate 2% or more lower than your current rate. This will save you money every month and ensure you get a good refinancing deal. Do not forget to add closing costs to the total. Often these can be added to the loan, but they should be paid if you can by cash. Shop your quote around to different mortgage lenders and see which terms rates and conditions fit your needs.

Across the country mortgage foreclosures are on the rise. When the so-called housing boom was all the rage home values were so high that almost everybody felt like they were going to keep going up forever, and we're not afraid to use the equity in their home to invest in the stock market, remodel or upgrade their home, or even use the cash for extra not necessary purchases. This was the housing bear market taking its toll.
The US housing market held the US economy together during the first stock market decline. When the housing boom came to an end there was nothing left to keep home values high, and when homes were reassessed for value, they were worth far less than the owners could have predicted. Therefore many of homeowner all of a sudden oved the same amount of money on property that was worth more when they bought it than it is today. All we can do is wait for the foreclosure filings to stop and start to recover from their.
This means for potential homeowners, now more than ever, that cash is king. And if you have the money to either invest into your home or to catch up on mortgage payments and then be able to refinance into a much cheaper rate even in this tough economy. A good credit score helps with cash coming heavily into play.
Otherwise if you are short on cash, or have lost a large chunk of worth in your home and still owe a lot for the mortgage you may have a hard time trying to find mortgage refinance. It is not impossible but will most likely be hard. If this is the case the Internet will be your number one tool. You can visit major mortgage lender brokerages websites for the background company value history and usually get a rough estimate on what a mortgage refinance can do for you.
This should almost be thought of as a major purchase. You need to shop around best quote you received for a mortgage refinance and base all of the numbers you off of that.

A home mortgage refinance can be one of the best financial decisions you have ever made. However, it could also be one of the worst financial mistakes you ever made if not done properly. Do not make a horrible mistake in going to a home refinance without knowing the reason you desire refinance, and what to expecft from mortgage lenders who offer refinancing. If you ask any of these mortgage refinance lenders if refinancing your current home mortgage is a good decision of course almost all of them are going to tell you it is. When the reality of the matter is that not everybody can benefit from a home mortgage refinance. However with current mortgage rates are near an all-time low end of your credit score has improved at all since purchasing your home odds our event you will qualify for rate that is at least 2% lower than your current rate. Generally if you can get a mortgage rate at 2% or lower than your current rate you could be a prime candidate for refinance. If you are serious about getting a mortgage refinance you should know that a few key numbers come in to play. These include the current estimate of the value of your home, your income, your credit score, and how much you owe on your current mortgage. There are also a few other details that come into play but these are the main ones. Refinancing a mortgage the correct way will save you hundreds of dollars every single month on a mortgage. This money can be used for anything you want but is best used to better your current financial position. This can be paying off high interest credit card debt, paying off your car loan, paying off any student loan, or improving your home.
Basically a mortgage refinance is paying off your old mortgage in acquiring a new one with better terms rates or conditions. This can mean a shorter length of mortgage, or as I said savings of a few hundred dollars every month. Refinancing can be done at any time throughout your home ownership. Make sure you shop the refinance rate that you feel most comfortable with around to potential mortgage lenders. They will often be happy to work with you especially if they know you are serious, and can qualify for a mortgage refinance.
-M Petrone

The window of opportunity to refinance a home will have never been more wide open than it is today. With mortgage rates low as they are, and the government injecting much-needed funds into banks this is the perfect time to consider a mortgage refinance. Refinance companies across the country are dealing with a large number refinancing applications. Although new home sales are down mortgage refinancing is up and for good reason. If you refinance your current mortgage one with lower rates you will save money every single month. This money could be used for whatever you decide, improvements, medical bills, high interest credit cards, pay off an auto loan, whatever you wish. Although it is generally considered good practice to use this money to further better your financial situation, or improve the equity in your home. The rate at which you're able to refinance is a combination of the current mortgage rates your credit score and your debt to income ratio. Along with those numbers is how much your home is worth at current market value and how much you all on the loan. Also remember that as a general rule of thumb the rate you're going to refinance into should be at least 2% if not more lower than your current rate. Do not forget that they're are closing fees, possible prepayment penalties in your current mortgage, and other costs associated with using a mortgage lending service. While these costs of these are normal make sure that your particular lender is not overcharging. Check the closing costs and final fees and other lenders and see how yours compares. Once you do seem to receive a quote that you like, use that exact quote in those numbers and shop around. More often than not you find real estate lenders who are willing to work with you, especially if they think they might lose your business to a competing lender. Be sure you do all the proper mathematics involved, make sure you will actually be saving money every month, or in the long run depending on how you chose to refinance. Overall the most important thing to do plenty of research and comparison shop. The Internet makes it easier than ever. Personally, I would never mess with a mortgage lender could not have a website. So choose a bunch of different companies using their websites a starting point to get the research information you need. Better yet, can you their website to see if there's a local branch or someone you could talk to face-to-face with you in your area. Make sure that any rate quotes that are appealing to you are written down on paper, hopefully signed by the mortgage underwriter. Come back often checked all of my different articles on mortgage refinancing mistakes that can be made, and benefits be had.

Mortgage refinancing is a difficult process for anybody. Luckily, it doesn't have to be. The first thing you should know about refinancing a home mortgage is that mortgage lenders are greedy. After all, the more they make off with you the more they get to bring home. The best thing you can do is arm yourself with as much information as possible prior to the mortgage refinance. If you know for a fact that your credit has improved since you purchased your home there should be no reason that you will not get a better mortgage rate through refinance. Generally, if you see that current interest rates on homes are 2% or more lower than the rate you pay, you could potentially save hundreds of dollars per month. This money could be used for anything that you want. Just be sure to shop your rate around different lenders. Most mortgage lenders in the face will have their own website and a special section within that website dedicated to mortgage refinancing. This is a great place to start. Once you receive a loan quote that you are happy with, take that exact quote and shop it around to other refinance lenders. More often than not you will find lenders willing to match or better the offer that you bring them. Don't be afraid to ask questions. Understand the exact closing costs and all the associated with a home mortgage refinance. If something doesn't seem right, leave. There are plenty of mortgage refinance companies willing to work with you in a beneficial manner. If you read the information provided on my website you should have absolutely no problem getting the best refinance mortgage quote possible.
-M Petrone

Basically, refinancing of an interest only loan just mean exchanging one loan for another, preferably with better terms or conditions. This is most beneficial to current interest rates which they probably are, are lower than the rate you were able to finance at. Mortgage rates are at an all-time low, if your credit has improved at all since you first purchased your home, you can save potentially hundreds of dollars every single month on your mortgage payment. Or, you can refinance into a mortgage that has shorter-term, so you will still own the same home but have fewer payments on potentially saving thousands of dollars over the course of the loan. The sure money can be reinvested something used for home improvements, consolidation of debt, or to pay off anything that has a very high interest rate that you're locked into. Although this money can be used for anything it is wise to use it to better your financial future. If you are currently in an adjustable-rate mortgage, now is an amazing time to refinance into a stable fixed rate mortgage. Currently mortgage refinancing applications are on the rise, often there are costs associated with refinancing any type of mortgage or loan. These fees can often be added to the total amount of the loan and paid off over the course of it. However, this is not a wise decision, you will be paying interest over the entire course of the loan closing fees and that is just burn away money every single month. I recommend that you try to pay as much or preferably all of the closing costs upfront, regardless of what the lender or any other mortgage advisor tells you. After all, they are the people who stand to make more money do not pay these costs up front. Also, be sure to search for the right refinance lender for you. Using the Internet is an amazing tool that can help you connect to multiple array of different lenders with different terms offering different competitive rates. Roughly 1,000,000 current homeowners can benefit financially from a mortgage refinance. Just make sure to do as much research as possible on any potential mortgage lenders, and once you do receive a quote shop that quote around and see if anyone can offer you something better. Whether it be better interest rates, better closing costs, better interest rates, or better yet all three. On my site alone their are a multitude of mortgage lenders where you can get rough quotes of what you stand to gain by a current mortgage refinance. Also, once you receive a full make sure you get it in writing. Good luck to you do not let a mortgage refinance ruin you. It should only help your current financial situation if it does not do that should not refinancing mortgage.

Yesterday the rates on 30 year mortgage hit a record low the second straight week in a row causing refinancing applications to surge to the highest level in over five years. The rates on a 30 year fixed mortgages dropped to a staggering 5.14% this week down from the prior record of 5.19%. This is the lowest rate recorded since Freddie Mac's weekly mortgage rates survey they began in April 1971. For a 15 year fixed-rate mortgage the average rate dropped to 4.91%. According to the mortgage bankers Association application index surged 48% in the week ending December 19

There are many reasons people choose refinance. The main reason however save money every month on their mortgage payments. They do this by refinancing their current mortgage into a new mortgage with lower rates or shorter-term. By refinancing into a mortgage with a lower rate you will save money every month and own the same home, while refinancing to get shorter-term on your mortgage will increase the equity in your house faster.
With refinancing rates at or near all-time low is a perfect time for a lot of homeowners to consider a mortgage refinance. If you are homeowner with an adjustable rate mortgage this is a perfect time to get into a more stable superlow currently available mortgage refinance rate. However, you plan on living in your current home for only a short period an adjustable-rate may be acceptable as long as you know you will be leaving(within two years) as adjustable-rate mortgages in the beginning are usually even lower than the lowest fixed rate, even cheaper if it's a 15 year mortgage.
Just be sure you do the proper research. Search different mortgage lender websites and compare your quotes across a wide variety of different one and choose the one that you feel most comfortable with.

Many people do not realize that a mobile or manufactured home refinance is a choice they have. If you own and are paying on a mobile or manufactured home, then you should look in to refinancing to see your options. Here are some things I think you should know about a manufactured or mobile home loan refinance.
Why would you even consider refinancing in the first place? Mainly to look for a lower interest rate, and rates are near an all time low so now is a great time. A mortgage refinance can also be used though for better terms of the mortgage, spending money, debt consolidation to get you out from under high interest payments, or money to use for home improvements.
Mobile or manufactured refinancing works by paying off your current mortgage with a new mortgage, hopefully with better rates, terms or both. This way, you own the same property, in the same time, just pay less interest or have less payments. This can easily save you hundreds per month to use however you desire. A refinance can also be used to extend the mortgage and have you walk away with thousands of dollars in equity, though this is less likely with a mobile or manufactured home.
It does not matter if your manufactured or mobile home is on private, or rented property, you are still eligible to refinance the mortgage. Although, state laws differ from state to state and you should check or check with your mortgage realtor.
Just like any other type of mortgage refinancing, their will be a closing cost of some kind involved. A lot of lenders will let you add these closing costs to the total of the home loan, which generally is not recommended from an financial standpoint. You will be paying those closing fees with interest for the lifetime length of the loan. This will add up to a lot of money in the long run. It is best to pay as much or all of the closing costs upfront, although you may not have this choice if you are in financial crisis.
Refinancing can generally be a good financial decision. You can look into it by checking lenders advertisements on my page here. Be sure to shop a good rate around to other lenders to see if they can match or better it.
-M Petrone

One of the things I love to talk about, is about how a home mortgage refinance should work. Refinancing a mortgage should not be taken lightly and is a life changing decision.
The ultimate goal should be ultimately to own your home outright. A mortgage refinance can either help or hurt this goal. A good way that a refinance can help is to refinance in to a lower fixed rate mortgage. This means getting a new home loan to replace your current loan, only the newer one will have (ideally) lower rates. Or, you could renegotiate a shorter length on the mortgage. Either one will save you plenty of money monthly. If you go with the lower rate same loan length option, you could use that extra cash monthly to build up equity in your home through home improvements. You could also spend it on paying off extreme debt at high rates, that kill your bottom line cash flow every month with their hyper inflated interest rate percentages. These are most likely from a credit card, or store credit, which often carry high fees and surcharges should a payment be short or late. If you choose the option of getting a shorter mortgage length, you are automatically building equity faster, every month in your home. People typically should not refinance unless it is for one of these 2 talked about things.

Research home mortgage lenders on their websites. Their ads are often seen on my page on the top. You can easily compare a multitude of lenders with a few minutes of filling out basic questions about your mortgage. You can use the online calculator on the bottom of the page to get a rough estimate of what you can save by refinancing your mortgage. Make sure you do good research and if you feel uncomfortable with anything do not hesitate to back down, or just disconnect with whomever you are speaking with.

In the past few months, the real estate industry is struggling to place people in mortgages they can afford with homes that they like. Owning a home is a responsibility, that means paying regularly as needed and keeping up with any terms or conditions of the loan. However, there are times almost everyone faces when even paying the mortgage is a heavy burden, instead of a happy needed expense. This is when home mortgage refinance can come into play.

A home mortgage refinance is when a buyer replaces his or her mortgage loan, for a new loan with better terms, conditions, or shorter in length (longer if you want to get cash back, that is a whole different scenario) the most important of these factors is the rate of the loan, and when you are done paying it. Mortgage lenders know that a good way to maintain stability in the market is to refinance a borrower when it is appropriate. The lenders know it is better to have someone pay a little less, than not pay at all. Refinancing mortgages keeps the positive cash flowing into the consumers pockets, allowing them the ability to make their mortgage payment, while having a few extra dollars.

Typically, a home mortgage refinance is done to lower rates, or control the length of the loan. This gives you a better handle on your month to month financial planning, and will free up extra money you would not have had otherwise, while still owning your home. Depending on the mortgage lender, the rates on a home can be a fixed rate, which is recommended, or a adjustable rate, which will change with market conditions. An adjustable rate mortgage can come in handy if for instance you know that within a few years you will be moving, then you can take advantage of the lower rates for adjustable mortgages and sell before the rates get too high.
-M Petrone

Most home analysts insist that there has not been a better time to refinance a home or condo mortgage. With home loan rates as low as they are due to the governments oversight, many people can save money every month by refinancing their mortgage. A 30 year fixed rate mortgage is around 5.45% down over .5% from just a week ago, while a 15 year mortgage that is fixed rate is near an all time low of 5.3% down over .45% from recent rates. The low rates are helpful in reviving the struggling real estate market, although first time owners would be most helpful for the overall market. A refinanced mortgage can save a homeowner hundreds every month by taking advantage of these new super low rates. If your credit has improved since buying your home, you will also benefit from this. You are also able to shorten the length of your mortgage if you choose so, consolidate loans, or use your homes equity to get a bigger mortgage. Homeowners can get credit much easier now, without the high risk of defaulting on your loan payment.
Does this mean that it is really easy to get refinanced in a housing market like this? Simply put, no. Real estate markets in big cities across the country, Richmond, Washington, St. Louis, San Francisco, San Diego, New York, and Atlanta have been reporting a down market. Which is a good measure for the conditions country wide. Its a multitude of things from, lower house prices, to the rise of foreclosures, to job loss and declining home sales all playing their role in this down market. There is plenty of money out there to fund loans, and refinances, but typically a borrower needs a credit score of 700 or more for a good chance of an approval with terms that take full advantage of the current low rates. If you have a lower credit score, you may need to pay a fee up to around 2.5% of the total loan amount you are seeking. It is still a tight credit market. A recent federal report shows that a lot of areas around the country that had a strong housing market, are reporting constrictive lending practices. The thought and actual research shows that with less money people are more hesitant to get themselves into a long term financial commitment such as a mortgage loan that can extend up to 30 years. Even worse, the recent rise in unemployment is going to make homeowners make tough financial decisions, some will be pushed into foreclosure. This means that for the next 6 months, as the layoffs occur, foreclosures are going to inevitably go up.
If you can qualify for a good refinance rate, you should still save a good deal of money every month on the same mortgage. Even including closing fees of up to $1700, you should recoup these fees within months.
-M Petrone

Do you have bad credit? Are you wondering how hard a home mortgage refinance could be? It may be a surprise to you that there are a great deal of lenders who specialize in home and condo mortgage refinancing for people with less than perfect credit. Of these companies, most (I would not deal with a lender who did not have one) have a section on their site dedicated to refinancing a mortgage for people in your exact situation looking to refinance.
Getting A Better Rate
A mortgage refinance can secure you a better loan rate for the remainder of your home or condo mortgage. It should save you a lot of money over the course of the loan, especially for the great many people who bought a home or condo with a adjustable rate mortgage. An adjustable mortgage means that the interest rates on your condo or home loan will change will the market conditions, and generally once they go up they do not go back down. The interest rate on a home or condo loan with this type of mortgage can fluctuate monthly with no notice. Plenty of homeowners unfortunately have gotten themselves into an adjustable mortgage which has been going up and up in the past few years, with no sign of dropping again. Due to this, a lot of home and condo owners have been forced into foreclosure due to their rates almost doubling their monthly mortgage payments and their take home income just cannot keep up.
Cut Your Monthly Mortgage Payments, Or Extend The Length Of The Home Or Condo Loan
Typically, refinancing your house or condo will get you a better interest rate and you can also choose to extend the mortgage length on your house or condo. So if you had 15 years left on your mortgage, you could extend that by 5 or 10 years, sometimes more, if you desire lower monthly payments in exchange for more of them. This will allow you to keep extra cash on you every month to use as you wish.
Borrowing Money Against Your Home
Refinancing gives you te opportunity to establish new lines of credit with the mortgage lender you have chosen. This money can be used for repairs of your home or condo, remodeling, furniture, appliances, or anything else you want. Generally though it is advised to invest some into your home or condo to increase its value. Although, many people pay off high interest credit card debts, auto loans, student loans, or other personal loans which carry a higher interest rate than the mortgage. This will save you money by not having to pay super high interest rates on other things.
Only Borrow What You Need To
Be sure to know exactly how much you need if this is your reason to refinance. Whatever you borrow against your home will have to be paid back, with interest, and should be accounted for. You will pay a lot of interest for a lot of years on what you are borrowing so make sure it is worth it, and needed. By borrowing only what is needed, you avoid paying interest on cash that would have been better saved, and you will have a lower monthly payment the less you borrow.
-M Petrone

Being labeled as a high risk borrower, can be a bad situation to be in, refinancing your mortgage could however help bring relief to this situation. So it seems a little odd to have to take out a new loan to pay off your other loans. This is however very beneficial if done right, and a way of making your current financial situation a little easier, while keeping your home.

There are a lot of mortgage lenders that prey on home owners looking to refinance with bad credit. With rates as low as they are, and so many people looking to refinance, these companies will kill you with over the top fees, or a bait and switch mortgage loan rate, etc. Here are some things you can do to prevent getting sucked into fly by night mortgage refinance company.

Do research on sub prime interest rates – Avoid at all cost loans that are 2% or more above the prime rates. While it is normal for sub prime rates to be higher, that is just to substantial of a percentage.
Do lots of comparison shopping – As with a big purchase, or any other long term financial situation, do your research prior to parting with your money. It is not impossible to refinance your mortgage with bad credit, however, the amount of work you as a borrower must do beforehand does make a big difference.
Read all terms and conditions carefully – Be sure to be on the look out for prepayment clasues or other odd sounding clauses that will prevent you from having any flexibility in the future.
Adjusted rate mortgages and interest only loans are now advisable – You are almost always better with a fixed rate mortgage. Even if the APR on a ARM loan is really good right now, in the long run it is almost always better to have the fixed rate. Especially with rates as low as they are now.
Don't get taken by Weird Fees – These are random fees charged by the mortgage broker. They are known in the industry as plump fees, or junk fees. Examples may include, fees higher than 2% for origination, phone and fax fees, transportation fees between office and bank, I have even seen fees that charge by the email. Google “junk fees” for a more detailed rundown of the types of fees I'm talking about

With research, which is easily done these days on the internet, you will be able to refinance in a way that is beneficial financially for you. Be sure that you check multiple sources for mortgage refinance quotes, especially with bad credit. The differences between mortgage company offers can be huge depending how much you know going in. Do not expect a mortgage refinance to be the be all end all to your financial situation. If you are not careful you will just repeat this viscous cycle in a matter of years.
-M Petrone

Be on the look out for a lock in rate guarantee from a mortgage lender
Typically, it takes about 45 days until the actual closing date, although sometimes a delay of up to 60 additional days can occur. Look for lenders who will offer you a lock in rate for at least 60 days. That means that the rate you saw on day one, will be the rate you see at the closing, regardless of the housing market. Look on the internet and here on my site for lenders who offer a free lock in
Be cautious however, that the lender does not just add a fee to your total home loan cost for the lock in protection.
Understand Your Right To Recession
If for whatever reason, the deal goes south at the actual time of closing, you can always consider starting over. For the most part, if you reject the deal after you agreed on it, you must notify your mortgage lender, in writing why, this must be done within 3 days, the sooner the better. Then, the mortgage lender, will have 20 days from that date to refund your fees in full. This is your right.
Check Your Costs Carefully, Especially if you have little equity in your home.
Generally, most lenders require that you have at least 10% equity in your home also referred to as a LTV of 90% or less. However, there are plenty of lenders, especially if you look on the internet, that are willing to work with you with as little as 5% equity in your home. Again, there is usually a cost associated with this, this time it comes in the form of higher insurance costs on your mortgage.
In these cases, if you have a loan issued by Fannie Mae or Freddie Mac, you may automatically qualify for these low LTV loans. It is not necessary but helps.
Make mortgage interest rate comparisons.
Be sure to do thorough research and compare a lot of different rate quotes from different lenders. The internet makes this easy. Most websites like mine have advertisers for mortgage refinancing companies that you can easily get quotes from. Make sure the terms and the length of the home refinance are acceptable too. Do good research on the refinance companies background, current financial position, and all things associated. Preferable is to deal with a lender who has an office located near you so you can have face to face interaction if need be.
Do Not Let Closing Costs Fool You
Mortgage lenders sometimes advertise “No closing” or “Low Cost” refinance options. Beware, sometimes these lenders make up for these costs by adding extra fees and costs into the total amount of your loan, which is often overlooked or ignored due to the low sum.
-M Petrone

If you are interested in having extra cash for a second home, home improvement, vacation, even other bills or wants, you just may be eligible to get a 2nd mortgage refinance and borrow against the equity currently in your home. Equity is the difference between the amount you owe on the current mortgage, and the amount the home is appraised for.
Usually, a 2nd mortgage refinance loan is a fixed rate and you end up using your own home as collateral against the loan. In return for obtaining an advance on your homes equity, you must pay back a specific amount, monthly, for the length of the loan.
How much do I have available if I take a 2nd mortgage refinance loan?
There is a specific formula most lenders use to accurately calculate the amount of the 2nd mortgage refinance loan. Usually, this is the current market value of the home, and then minus the amount you owe on it. There are available online calculators such as the one at the bottom of this page that can help you get a rough estimate.
Also, by taking out a 2nd mortgage home refinance you could be getting into a better interest rate than you currently have, which can lower your payments all together. Rates are near an all time low right now, and your credit probably improved since purchasing your home. This alone can save you hundreds every single month for the length of the loan.

To refinance a home mortgage is a very serious decision that should not be done without proper research before hand. Your number one over all goal should always be and remain to pay off your home. Mortgage refinancing can either help this or hurt this depending on which way you take it. I think, that the only reason to refinance a home is to get into a better loan with a better interest rate, or shorter terms. For example, if you pay 8% interest on your home mortgage, have 15 years of payments left, then refinancing into a 6% 15 year mortgage, will most likely be beneficial for you. Or to shorten the length of the loan, which also builds equity in your home faster. Both of these examples would help get you to your ultimate goal of paying off your home.

There are all different situations people have with their mortgage, but the rule of thumb is that you should consider refinancing when the current interest rates on a mortgage are around 2% (hopefully more) less than your current interest rate. This will decrease your payment on your house every month while being able to pay it off in the same time as you would have. There are fees associated with a refinance, that may be advertised as free or low cost, but beware of those. You should expect to pay a fee and preferably pay it upfront, even if they offer to add it to the loan total. Then you would just pay interest for the length of the loan on their closing fees, and that is throwing money away. Typically, most people report “breaking even” from a mortgage refinance in about 36 months from the day they signed the papers. Check online for mortgage calculators and you can get a rough idea of your possible savings.

Do not refinance just to get some extra cash. This is dangerous, putting your house at risk. After a refinance, if you miss a mortgage payment, for any reason, it is easier to lose everything you have worked for. If you use the money for home improvements, which add to overall value of the house, then it may be worthwhile. Also, if you are moving within the next couple of years and want a cheaper mortgage payment until then.

-M Petrone

Interested in getting a reverse mortgage, but are unaware of what exactly you are getting into? There are a many different things to know when looking into a reverse mortgage and you need to know what before going to shop around for the best lender.
What is a reverse mortgage?
Most targeted at senior citizens who are at least 62 years old at the time of the reverse mortgage. The lenders are willing to give you a new reverse mortgage, with out paying figuring that at some time, you will move into an assisted living facility, or pass away at which time the lender will take over control of your home and usually sell it in order to recoup the money that was given to you.
There are 2 ways that money is made by the lender in this type of mortgage. They will charge a fee at the time, generally between 2%-5% of the total loan amount, also, if the home appreciates in value, they make money there when they eventually sell the house. For instance, if your home is worth $100,000, they will typically make between 2-5 thousand dollars, just off the loan fees. If your home happens to appreciate in value, they will also get that worth when they sell the house in the future.
In the borrowers point of view, this is a great method to tap into your homes equity now, instead of waiting or selling the house. You can take the cash from the reverse mortgage and raise your standard of living, take a vacation you have always wanted. The average home only appreciates by about 3% or so yearly, while money in a retirement account, or in a mutual fund could be making you as much as 10% interest.
If your in need of money to help you retire, or live more comfortably, then know what a reverse mortgage is may be your best bet.
-M Petrone

Lets sum this Q & A up: An owner of a new condo wants to know if it is to soon to refinance her mortgage. I say it is never too soon to refinance a mortgage as long as you know how much it will cost you, and when you will recoup your money.

Q: Last April I bought a new condo. Currently, my home mortgage has a rate of 8%. I see mortgage rates falling, and all are lower than mine. Should I refinance my mortgage? How long do I have to wait to refinance since I just bought less than a year ago? I do not want to miss out on these really good rates I see, and I want to do something about it but I do not know where to start. What do I do?

Answer: A refinance on a mortgage, no matter when you got it, can happen at any time you choose. Figure out how much the refinance will cost you, and how long it will take to make your money back and decide from there. If you are not able to recoup the closing and other associated refinance costs in 2 years or less, you should wait for rates to drop even further, or shop around at different lenders for better terms.

Think about how long you plan on staying at a home as well. If you know within 7 years or less you will not be living there anymore look into an adjustable rate mortgage which will have pretty good rates and terms over the first few years. You can also look into no cost refinance options, but these generally are not such a good deal. The closing costs are usually somehow worked into the new home loan and you pay interest on that for the length of the loan.
-M Petrone

There are several typically good reasons that people refinance their home mortgage, there is also reasons that a refinancing may not be the right thing. If you are thinking of a refinance, you need to know why and what you are looking for in your new home loan. You may be or are currently in one or multiple of these situations described below.
Take Advantage Of Near All Time Low Mortgage Loan Rates & Refinance
In general if you think you will be able to get a new home mortgage for 2%-3% lower than your current home loan rate, than a refinance may be a be good thing for you. Every situation may be unique, and it may not be this simple. Sometimes you are also forced to pay a penalty for paying off your mortgage so make sure that the savings are going to be worth it.. There is a mortgage calculator at the bottom of this page you can use to get some estimates. Enter your current loan information, and today’s mortgage rates, you will see if a refinance is the right thing to do.
Debt Consolidation
Many people choose to refinance their mortgage in an attempt to pay down other, often higher interest rated debts. Credit cards, car loans, doctor bills, tuition, all usually have a higher interest rate than your mortgage. A lot of people will refinance to get some cash back and use that to pay other debts. This can be a good way to get out from under a load of bills. Make sure, however, you actually use the money to pay off debt. If you do not use it to pay off preexisting bills, you are hurting yourself even more in the long run by taking the equity out of your home. Do not use a refinance to change your lifestyle, or buy something non home improvement related.
Cash Out
Often your home has enough built in equity, and you are in need of extra cash your home can provide it. A better choice than using credit cards, a cash out refinance is a good way to get a super low interest loan. Doing this method though means that you are going to refinance for more than you owe. Therefore your monthly payments will rise Offset with the debt you have eliminated though, these costs should even out or even tip eventually in your favor.
Cost of a mortgage refinance
If you are in an adjustable rate mortgage (A.R.M.) that is about to go up, you could be in for a suprise. A good way to avoid payinog higher ARM rates, is to refinance into a fixed rate mortgage, or another ARM loan with different terms. Please understand that their is closing costs associated with mortgage refinancing, when figuring out if you are going to refinance from your current loan into a new one, take all expenses into account.
Planning on moving?
If you are aware that you will be moving sooner than later, you may want to refinance into a ARM loan to pay the usually lower interest rates for the first months, and be able to sell your home and move before the higher ARM loan rates kick in.
You must understand how your new taxes will be after a mortgage refinance. Often this can be an afterthought, but by refinancing into aq better rate, you will pay less each month on your mortgage, but more in taxes. The tax deductions may outweigh the monthly savings or vice versa. Find out how your taxes will be affected..

Make sure to check refinance websites, for advertisements from lenders. Check out the lenders and get free fast quotes until you come across a company you feel comfortable with
-M Petrone

When buying a home, especially a first home, most people look at the price of the house, but overlook the loan rate on the mortgage. Mortgage rates play a bigger role than people are led to believe by real estate agents. The rate needs to be accounted for when determining the final cost of your home, and the monthly payments. When the reality sinks in that you could have, or can now get a better mortgage rate then a mortgage refinance may be the right option for you. Mortgage rates are at a near all time low right now, and your credit score could have gotten better since owning your home. Combined with a new mortgage rate, you could save hundreds per month on your mortgage.

Usually the main reason to refinance into a new mortgage is to adjust the payments to a lower rate on the loan, or to shorten the loan length. You are able to refinance with a different lender than your current one, so look at websites related to refinancing for lender ads. After refinancing, you should be saving money either monthly, or have less mortgage payments all together.

There are, however, many costs related to refinancing a mortgage that may need to be paid upfront (which if you can is the best thing to do). You do not want to have to pay interest over the course of the loan on these closing costs. Even with these closing costs, you should save money in the long run.
There are 2 main reasons that homeowners decide to look into a mortgage refinance, that will matter when getting a new home loan rate.
Reason 1:
You acquired your mortgage when interest rates were a lot higher. If this is your reason, than you should be looking into a refinance for a better mortgage rate or length of the loan. This way, you will either save money monthly or save money on the back end by having fewer mortgage payments.
Reason 2:
You have a mortgage with an adjustable rate. If this is your reason, then you most likely would be looking into refinancing into a fixed rate mortgage. That means every month, regardless of the housing market or any other factor, your mortgage payment remains the same. With interest rates now near an all time low, this is a great choice for a lot of homeowners in a adjustable mortgage.
There are many reasons people choose refinancing. These are just 2 of the most common examples. You could actually refinance and get cash back from equity you have in your home, but that is for another subject.
-M Petrone

Earlier this week my brothers mortgage lender called him offering a 5.25% rate on a mortgage if I refinance. This would almost be $200 a month in saved money just by saving refinancing 1% lower lower than my current rate. However, I would be responsible for the near $1,600 dollars in closing costs/ According to my math, I would break even, including the closing costs, in about 8 months from now. Although, I think I will hold out for a lower rate, or a less costly closing cost.
Mortgage rates are falling
On November 26th, the Government announced that it would buy over $500 billion of securities used to back mortgages issued by Freddie Mac & Fannie Mae as well as $100 billion in direct debt from the two. Upon this news, mortgage rates instantly dropped .5% to 5.5% within 1 week, followed by mortgage applications doubled
Why didnt my brother refinance?
He thought, and is probably correct, that interest rates would fall even lower within a few months, somewhere around 4.5% Then, he could possibly save even more then, instead of refinancing yet again later. He watches the mortgage rates everyday as you should.
Do Your Research.
Make sure to look at websites with advertisements for mortgage refinance lenders. This is a good way to check a lot of different websites, and get estimates, all at the same time. Choose the loan that you feel comfortable with and has the best rates and terms. Sometimes, shortening the lengthof a mortgage is better than saving every month.
-M Petrone

For the most part, mortgage refinancing is usually done to get a lower interest rate, or to lower your monthly payments either by saving enough on the mortgage rate, or by making the length of the loan longer. Shortening the length of yo\r mortgage will also build the equity in your home faster.

A home refinance that is used for improvements to the home or property, is generally seen as a good investment. Rebuilding your kitchen, replacing the siding, repaving the drive way only add to the value of your home.

A mortgage refinance is a good way to have more control of your cash. Lately, interest only home loans are popular due to you the home owner having more control of your money. Be sure to closely monitor interest rates when you are ready to decide, as you will know what option is best for leveraging your current mortgage rate for a better rate. Interest rate payments are just essentially wasted money, those payments just go straight to the lender who approved your loan. Sometimes, with the right lender, you can get a super low introduction rate that generally lasts only 3 to 6 months.

Sometimes, people are looking to refinance their mortgage to pay off other, higher interest rate bills which have accumulated. Credit cards, car payments, credit card payments, and the like. It is a good idea to do this only if you owe a lot of money to these people. Most of the time though, the interest rates on these are higher than your mortgage interest rate, so it makes sense to do if you can.

Millions of homeowners have saved by cutting their monthly payments down and refinancing into a better mortgage rate with better terms, saving thousands on the life of each persons loans. Now is one of the best times ever to refinance. Rates are at an all time loan and millions can benefit from doing this.

Do not consider getting into refinancing without doing a lot of research beforehand. Check out all different companies, and their websites. Make sure you have a local office to deal with, and that real life people answer their phones! Websites about mortgages are always a good way to check a bunch of lenders on 1 page. On my site their are a lot of lenders advertising their rates. Use the internet to do research that would otherwise take you days to do.

-M Petrone

Many people turn to mortgage refinancing in tough financial times. Some, are facing foreclosure on their home and look into getting a mortgage refinance.
A problem someone in this situation may come across, is the wide array of companies looking to take advantage of a homeowner who is about to lose their home, and in a bad money situation, for their own profits.
Lots of people fell into a bad adjustable rate loan, which was low when they signed on, but rose every time the market would hiccup. Often, the rates would not drop, even if the housing market got better.
Recently, the government poured over $300 Billion in funding to loosen up the banks policies on refinancing. Homeowners today looking for a loan modification ideally should have more choices from more lenders due to the large influx of cash from the government bailout.
Over 500,000 homeowners could benefit from this bailout. If you are in a bad mortgage with unfavorable terms, and high rates, then refinancing your mortgage may be right for you. Check websites around the internet, check the ads offering rate quotes and see what they say. Its easy to check multiple lenders in a single night.

Remember to read through all our posts about how to refinance properly without getting burned.
Mortgage refinancing can be a huge money saving thing if done correctly.

Choosing a mortgage refinance company these days is easier than ever. Most mortgage company's have a website, with loads of useful information on them. They will have everything from mortgage calculators to approximate rates on a refinance. They will also include, company contact information, and some company history. Make sure you read all about your refinancing company of choice. If something doesnt seem right to you, they people are all young, the business is too small. These are signs that the refinance company does not have the leverage your looking for. You want someone with some pull. Someone who has done this before. This can make all the difference between savings thousands of dollars, or merely just having a longer loan term for the same amount of money. Check advertisers that are found on refinance websites. They usually have the buying power, and market presence to secure the most stable, profitable for you refinance terms. Website ads are a great first place to look for refinancing companys, and typically you can find more than 1 company on a site. Go with the big names first, the ones you have heard of. Then check into some mortgage refinance company you havent heard of and do research on them. Find the best mortgage refinance terms/rates and choose from there.

Many people in the United States during the boom in home housing purchased by ARM in recent years has been a boon for them. It is like living the American dream through investments in their first home ownership. Most of these people to buy the adjustment rate mortgage that they can not each deposit. And many houses are now this time with great difficulty of managing the surge in interest rates. It is a forced landing to say the least. The only thing they can do to get out of this is refinancing mortgages for their ARM.

Refinancing mortgages is now the choice for people who are qualified for their adjustable rate mortgage refinancing. Not all owners are qualified for the refinancing of mortgages. While the housing boom, the adjustable rate mortgage looks like the perfect option for home buyers. Most of these home buyer does not have, for each deposit and some even closing money again. Plus you can refinance and take your money within two years and they always, for the rate you want. It looks like the perfect investment on a dream house until the subprime mortgage collapse.

Now all these people have ARM loans are cleaning products all means to refinance, because their interest rates are nightmares. The reason is the dramatic increase or increase the interest rate for loans at home. This house or apartment can be increased from four cents to six hundred dollars per month on their adjustable rate mortgages. This may be an awakening for some weapons even have caps. Thus, the best option is to obtain refinancing of mortgages.

Given that most people have heard or seen the news, the Federal Reserve more money into the financial system as behemoths Fannie Mae and Freddie Mac. Interest rates are very low, and it is a good time to buy property at home. The government will do everything based on the economy and a way to do this is to lower interest rates. By a decrease in interest expense of people are expected to benefit, and thus an incentive linked to the collapse of the economy. But people are still very reluctant to enter the tumult of battle. With all the bad news on the economy and stricter requirements in terms of borrowing, it is very difficult for people to jump on the train. What man is looking to refinance their loans at home having more than monthly payments.

With the new massive efforts of many governments around the world, particularly in the United States, assistance for distress or collapse of housing, it would be a good idea to refinance. The mortgage rates over thirty years has the right to the last four weeks, and it is now six per cent. And most people in the mortgage industry are down more than forecast rates. With over decline in the future than expected, it would mean that people can buy their homes again. And the best is the man, ARM loans flat economy, which is located on the top or the high interest rates is now refinancing for a lower rate. That means less monthly payments for that house and homes.

This sharp decrease in interest on mortgages is a welcome boost at home and dwellings, struggling to make ends meet. The sharp decline is due to the last phase of the Federal Reserve infusion of more money for mortgage securities behemoths of financial assistance, in financial difficulty.

Interested in freeing up some cash? Possibly lowering your monthly mortgage payment? Or shorten the length of your home loan? Then you may want to look in to a mortgage refinance. The equity ( equity is the assessed value of your home minus the amount you owe ) is a readily available source of cash that you can access.

A second mortgage refinance is a fixed rate loan that will use your home as the collateral. The bank will front you the equity in your house, and you agree to pay it back in the terms and at the rates defined in your new second mortgage refinance. You still keep your home, and when done paying off the 2nd mortgage, the home is entirely yours.

Online mortgage calculators are a very popular method of quick mortgage refinancing analysis. The calculator on the bottom of my page will help you.
-M Petrone

Most of the time, a regular fixed rate home mortgage has a penalty clause that happens when a loan is paid off too early, or too much is paid before is due. There are also closing fees that can amount to a large sum of money, added on to your loan, and therefore financed for up to 30 years. People tend to forget the associated costs of refinancing and only see the loan rate % numbers. You must include all costs, and associated costs (how much interest would build up on a $1000 refinance fee, at 5% over 30 years!). Although, right now is most likely the greatest time ever to refinance your home, condo, business, mobile, manufactured home. Rates have never been lower.
-M Petrone


MEQUON, WI, Dec 09, 2008 (MARKET WIRE via COMTEX) -- Mortgage interest rates are falling to near-historic lows, and home affordability is the highest since 2002(1). Consumers are refinancing at a pace not seen since the "refi boom" of 2003 to 2005; and if rates keep falling, the new wave of refis could get even bigger. Now lending managers are asking themselves, "Can our staff handle this volume?" And consumers are wondering, "How can we gain easy access to today's mortgage bargains?"
Scott Happ, President/CEO of Mortgagebot(R) (, has one answer for both questions: Use the Internet.
Mr. Happ says that modern, online, point-of-sale (POS) mortgage-origination systems, such as Mortgagebot's industry-leading PowerSite(R) product family, are what lenders need to handle rising volume -- and what consumers need to efficiently shop and apply for loans. He cites the success of Mortgagebot's 800-plus clients as proof.
Gregg Formigoni, Vice President and Mortgage Department Manager at the $245 million-asset, 12-branch Illini Bank and Trust of Springfield, Ill., said that the implementation of Mortgagebot PowerSite is a key factor in his department's ability to keep pace with rising mortgage volumes.
In an interview in the American Banker, Formigoni said, "The rate drop last week has definitely increased our application volume. We already have closings [set] for around Christmastime(2)."
When asked how PowerSite helps his Bank meet rising demand, Mr. Formigoni noted how PowerSite provides immediate conditional approval for Fannie Mae-qualifying applications -- which used to take 48 hours. "PowerSite [is] central to... our mortgage business," he said.
Changing mortgage market; increasing mortgage volume
The Thanksgiving holiday did not squelch consumer desire for lucrative refi opportunities. News that the Federal Reserve would purchase $500 billion in mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae immediately "drove down interest rates... [to] 5.25 percent to 5.375 percent, sparking a surge of interest from homeowners(3)."
The New York Times cited a Mortgage Bankers Association of America (MBA) refi report from Thanksgiving week showing that refi activity tripled in comparison to the previous week and increased by almost 38 percent over the same week in 2007(4).
Now some lenders are wondering if they are insufficiently staffed to handle the rising volume of mortgage applications(5).
"Lenders with an interactive, fully transactional online lending channel -- such as Mortgagebot's clients -- are the only ones that are positioned to profitably absorb the current volume of mortgage-loan activity," Mr. Happ affirmed.
"Our more than 800 clients include a wide range of community bank and credit-union lenders," said Mr. Happ. "For many months now -- and with no media fanfare -- these trusted, local lenders have seen their mortgage volumes climb steadily as rates have fallen, mortgage brokers have faded away, and the big subprime players have been struggling to survive."
Consumers now prefer the online mortgage channel
"Perhaps even more significant than today's falling interest rates is how modern consumers are responding," observed Mr. Happ. "They're doing most of their shopping and applying for mortgages over the Internet."
Mr. Happ cited a recent study by Deloitte Consulting, which reveals that borrowers now prefer the online mortgage channel -- in fact, consumers of every demographic segment now use the online channel first when mortgage shopping(6).
"It used to be that only big, national lenders had sophisticated, interactive mortgage-application Web sites -- but that was then," he said. "Now, because advanced online technology is so affordable and easy to implement, banks and credit unions of every size are gaining new mortgage business from the online channel."
With today's sophisticated online technology, mortgage shopping no longer has to be a time-consuming exercise in frustration -- which means no more waiting for an overburdened loan officer, or being kept "on hold" by a busy call-center representative. Consumers can now go to a lender's mortgage Web site "24/7/365" and get an accurate quote in seconds.
And if they select a lender with an intelligent, fully transactional mortgage Web site, consumers can accurately complete an entire mortgage application, get pre-approved, and receive all required disclosures -- in as little as 20 minutes.
Mortgagebot clients: 'Want to refi? We're online, ready for you 24/7.'
When the last refi "boom" started in 2003, applying for a mortgage online was far from the norm; few lenders even offered such a capability. But in the last five years, the market has undergone a sea change in consumer preference.
"Less than 60,000 mortgage applications were processed through all of our clients' Web sites from January to November of 2003," recalled Mr. Happ. "But from January to November of 2008, we've seen volume increase by a factor of seven, to nearly 400,000 applications. On 'Cyber Monday' alone, our clients' Web sites saw 175,000 rate searches -- one of the 'top ten' busiest days in Mortgagebot's 11-year history."
"In the last five years," said Mr. Happ, "hundreds of community banks and credit unions have implemented interactive, user-friendly mortgage Web sites from Mortgagebot, which enable borrowers to instantly get detailed, accurate rate quotes. Those lenders are now saying, 'Want to refi? We're online, and we're ready for you 24/7.'"
Yet despite the increasing popularity of the online channel, Mortgagebot research indicates that only about 20 percent of bank and credit-union mortgage lenders have an intelligent, automated mortgage-application Web site.
"When it comes to mortgage applications, too many banks and credit unions are still bogged down with online PDFs, paper 1003 forms, and manual data entry," said Mr. Happ. "And for many lenders, the only sure way for a borrower to apply for a mortgage or a refi is to make an appointment with a loan officer. As a result, lenders are now backlogged and unable to keep pace with the application volume that's flooding into their branches."
Mr. Happ says there's a better way.
"Today's consumers demand speed and convenience, which makes the Internet the ideal channel for the mortgage-application process," he noted. "Our clients frequently tell us that PowerSite delivers the best possible online application experience for their borrowers -- and that they're boosting productivity without adding staff. Their automation multiplies their effectiveness and enables them to keep pace with rising volume, while still providing outstanding service."
"We're a small credit union with only two people on our mortgage staff," says Ms. Linda Boe, Mortgage Supervisor at Louisiana Federal Credit Union, a three-branch, $115 million-asset credit union in LaPlace, La. "Mortgagebot has helped us more than double our loan production -- and we still have only two people in our mortgage department!"
"We're very pleased with the way Mortgagebot PowerSite saves us time and money," stated Ms. Boe. "It basically does the work of about three people for us."

Most people tend to believe that they can not refinance their manufactured or mobile home mortgage. In reality, however, there are a variety of refinancing options available. You have a mortgage payment and a deed you will receive when you finish your payment, the same as any other type of homeowner, you also have the same home loan options. If your current mortgage rate is higher than the current nationwide rates, or if your credit has improved since moving in, you most likely would save money, or even walk away with money, if you refinance your manufactured or mobile home.

Like any other refinance, you are simply taking out a new loan, with better terms, rates, or both, and repaying your old loan in full. This will reduce your monthly mortgage payment. You can even refinance for more than you owe (but less than the home is worth) and walk out with that cash. Maybe you do not need to save money every month but you could get a loan with a shorter term and same payment as you have now.

However, what will matter is whether the mobile home is located on your own private property, or if you rent space to put it on. Then things tend to be less favorable as the refinanced amount would only be worth what your home is worth, not including the land. For most homes the true value is in the land. Check with different lenders to see the terms and conditions for your particular state as it varies.

Also, do not forget that you must pay closing costs. These can be paid upfront, or worked into your refinancing. You are better off paying them up front to avoid paying 30 years worth of interest fees on your closing costs. You will pay a lot more in the long run for these closing costs than if you paid them upfront.

Right now is a good time for any home owner, regardless of type of home, to at least look into adjusting their mortgage. Use the internet for easy comparison of a wide variety of companies. Theres more often than not, a solution for everyones mortgage refinancing problems. Just be sure to do your research first and go in with some general knowledge gained from reading articles, and looking at lenders websites.

-M Petrone

While it is true that mortgage lenders & creditors typically give people with a good a credit rating, less scrutiny to refinance their home or condo mortgage. However, there is hope though for refinancing a home loan even if you have less than perfect credit. We will discuss what a bad credit report means, and how to improve your credit score, and how that affects your mortgage refinancing chances.

Typically, mortgage lenders use FICO credit score when looking over a potential borrower's credit report. In the refinance industry, the FICO credit score is the most widely used determining factor in credit worthiness for people desiring a mortgage or refinancing. A FICO score is all of your credit information, analyzed, and given a single score.

The 3 determining factors mortgage lenders use when giving you a credit score are.
Payment history – Paying off loans or credit card debt early is a bonus. Amounts of credit issued and used arealso factored in
Credit History Length – Basically, how long you have been making consistent credit payments. The longer the better. Also the type of credit issued.
New Credit – The number and amount if recently issued credit.

Improve your credit score by paying bills on time. Clear any old debts off your record, the sooner the better. Make sure the credit you do have stays under control, make payments early and more than the minimum.

Always get a credit report before doing any of this. Check my links for refinancing lenders quotes mortgage calculators and free credit reports.
-M Petrone

I was approached by a swarm of households, currently with the foreclosure. I'm sad that so many people in this situation, and how they were deceived, thinking they can afford these houses. Even now, I heard stories about the owners who promised to have no false hopes, which can be saved, the exclusion from the payment of a fee of short sales, the loss for the limitation of payment, or are simply doubled its wholly conscientious professionals of justice.

The fact is that you can save in terms of their foreclosure, because you do not have many options.
The first thing that the owners have trouble to the realization of separation is your emotional attachment to your home if you are using the property for less than four years. I say this because if your house in the last four years, they will probably be bought in the prices really high, and the majority of households have purchased with a funding of 100% without consideration of income. If this is the case, that you do not meet the net value of your house and not worthwhile can be maintained. What I recommend is a family for the preparation of a budget of the net income minus all costs and if you forget in a negative! loses his court and his lead is not too late to start over.

May refinancing, an option with the new FHA guidelines, which have an influence on 1 October 2008, when the accommodation can refinance your mortgage, if they can demonstrate that their income is sufficient to pay the mortgage and 29% of their income And only if the lender accepts a loss (payable in shorter) is on the FHA mortgage for the purchase of mortgage loans in the current level of 85% of the current market value of acquisition fees and debt all bags, with no more than 90% of the current market value. Please visit the website www. and research for the bill HR 3221 for the accommodation for the complete description of the bill. Please do not forget, this is a loan for all documents not for the people who can not prove their income!

Then do you find that it does not allow refinancing and can not help, please contact your lender does not fear the end of the line can not afford. Your lender to see that you are not possible if you allow our cards on the table with their time from them the whole truth when they see that it does not allow, of course, a plan to pay for not working. The lender may again ready to change if your income shows that you pay the new conditions for loans, why should I say, sometimes better to forget the reality and the emotional attachment we have for the houses. Most lenders offer to apply for leniency to Deffie payments of up to six months, but again, if you always have the same income within six months to finish.

Option 4 is the house on the market to sell and the current value of the market for hiring a real estate you a free market analysis data, when combined with the list is more than likely that your house is not what you have to be important to keep communicating with your bank in this process, so you can see, unless you try, the hole itself, and he will break in the proceedings exclusion in this period. Once the property is the market value of the consignment with a copy to your lender because they will have a loss, what is a sale. Durante este tiempo, asegúrese for your money to save a empezar alojamiento para buscar Pasar a no ser muy Comodo. I'm surprised by the number of people wait until the police chief calls its doors before the reality visits at home.

If after a few months, the facility does not sell, you have the right to Chapter 13 bankruptcy. Tenga sólo cuenta in use when Presenta su capítulo temporal Sólo 13 when usted no puede permitirse hipoteca su actual capítulo is the 13th No. a ayudar como ahora tendrá su pago Pagar that of regular hipoteca y todos los su Deuda consolidada in pago al otro now the administrator two payments. Despite the huge fees by a lawyer. Chapter 13 is for people who can prove that there are in a position to make their current mortgage, so that all residues in a plan for payment of more than 5 years.

If the Chapter 13, sale, refinancing, selling, patience, payment plan, once again ready for change, which does not work, so you give your lender, you have cash to request the keys for a couple months and enter voluntarily into Indeed, rather than the exception, it is certainly annoying that the police boss that you and your family.

Just remember you in this difficult time not thinking right and gives us a sign of hope as a god, but the reality is that you can use your own house, if you just talk to your lender and to achieve when really can afford to keep this house, even if the lender is working with you.

I can not stress how important it is to communicate with the lender, offers the options open to any institution, recruiting someone for you. Not in a trap just say right to your lender to them courage for truth and risk of shame can be done much time each of us and it is never too late to anew. Takes me, I traveled the road and helped me to a few hundred I've saved, and others only gave them and began a new chapter in their lives.

-Refinancing Condo

Refinance Right Has added a mortgage calculator to better estimate mortgage payments. As well as a free credit score report. The more you know going into a mortgage loan or a refinance the better you will walk out of it.
-M Petrone

Refinance your mortgage today. You could save thousands of dollars by refinancing your current mortgage into one with better rates. Loan rates, especially mortgage loan rates are at an all time low. To refinance your mortgage now would generally mean lower monthly payments. A mortgage refinance can even be done with bad credit, or even a bankruptcy. Use lenders you see advertised on refinancing sites like this one to compare refinance quotes. Try to find a few online mortgage calculators to get the best refinance terms. Refinance your mortgage today while it is worth it to do so. It has never been a better time for the majority of home owners to refinance. You can even get a cash back refinance, where you will walk out of the mortgage refinancing with cash in your pocket.
-M Petrone
Refinance Right

Dont be fooled into thinking you can not get a mortgage due to bad credit or a bankruptcy. Most people have a misconception that it is the end of your credit world and you will never be able to obtain credit again. People, for the most part, dont fully understand what a bankruptcy is.
Eitherway, you need a mortgage loan and have bad credit? Your best bet is to wait at least 24 months after the bankruptcy has been declared before applying. Please remember in that time to have flawless credit reports, and the larger the cash down payment, the better. Better yet, try to clear any debt you have, even if its only a little. Lenders will see this information and use it to their favor and up your loan rate.
Use a few different mortgage lenders. Shop around for different quotes. You will see a different quote from different companies. Check advertisers on refinancing web sites like this one. They often have large amounts of money in their refinancing departments. Dont be afraid to shop around a lot before you get a loan with terms you are comfortable with.
-M Petrone
Refinancing FAQ & Advice

If you have recently filed for bankruptcy there is ways to get a mortgage. The best way to do this, is to make extra efforts to increase your down payment (bigger = better) and make sure you are prepared for income verification by the lender.
Typically, lenders require a 24 month wait from the moment the bankruptcy was official until you will be considered for a home loan. However, when that 2 year wait is over, you most likely will be able to receive 100% financing for your mortgage. Keep in mind your credit score will still need to be decent. Keep up to date with payments, even minimum payments at all costs, especially after bankruptcy.
However, if you are seeking a home loan within 24 months after bankruptcy, your credit will need to be perfect since the bankruptcy. Then, you will often still need at least a 5% down payment. The more that you have for a down payment the better chance you have of getting approved.
Here are some great ways to get some down payment money to help your mortgage approval with the lender.
Ask a good friend or a relative for a loan, pay it back in a few years after you have reestablished your credit and can refinance your mortgage for a better rate and walk out with cash. The lenders require that you tell them about any loans from relatives or friends to assist in the down payment. So maybe get it in a card for a holiday instead of 1 lump sum :) Mortgage lenders have strict requirements (so they say) about where the down payment money is coming from do not get caught lying/defrauding a mortgage lender.
Search the internet for down payment assistance programs. Theres even government grants available to first time mortgage seekers. Google down payment assistance and you should have a good start.3. You could cash out a 401K or another investment and like in the first example, repay yourself with a 2nd or 3rd mortgage after the loan has closed.
Cash out old bonds, sell some stock, cash out some of your 401k. If you keep up with your credit rating after the mortgage, you can refinance for a way better rate and put the cash back into where you got it out from. Kind of like a loan to yourself.

-Refinancing FAQ & Advice
-M Petrone

Are you thinking of getting a home equity loan but have less then favorable mortgage terms, a cash out refinance might be a good solution. This method, allows you to utilize the cash value of your homes equity, while receiving the added bonus of having a lower monthly payment.
The mortgage you have been paying on is a source of instantly available cash that can be used by you in exchange for some of the equity you have built up (lets you get some cash from the increasing home value of your current home, without having to sell it). As far as the easiest way to acquire a sizable amount of instant cash, a cash out refinance is often a great low cost, solution of using your homes equity. The advantages of a cash back refinance are often greater then other options such as a home equity loan, second mortgage, or extended lines of credit.
The Basics Of A Cash Out Mortgage Refinance
All refinancing is, is taking a new loan with better rates, and for an amount greater than your currently owe. For example. If you owe $50,000 on a $75,000 home and refinance into a $65,000 loan, you can use that $15,000 difference for whatever you want. This is better due to the fact that you still only have 1 mortgage on your home. Also, theres a good chance your credit has improved since owning a home, therefore you will qualify for better rates.
How much can I borrow with a cash out mortgage refinance?
Typically, you can borrow up to 100% of your homes value. There are even some lenders in the market who will give you more than that. This, however is not recommended. You are risking losing your house for some quick cash, You need to weigh all the risks before refinancing with a cash back option.
Make sure to shop around for the best mortgage rates and terms.
If you decided a cash back refinance on your mortgage is right for you, it is verysmart to shop your mortgage terms around to a variety of lenders. Often you will find a much better rate or terms with one lender over another. Internet ads for refinancing are a good way to start this process. Shopping for quotes is easy these days.
-M Petrone
-Refinancing FAQ Advice

Sometimes abbreviated HEL, a home equity loan is when the homeowner uses the equity they have built up in their home as collateral against a new loan. Usually, this is used to gain a large cash sum for a big payment (medical, home improvement, etc..) and this reduces the real equity in the home.
-M Petrone

By taking the a cash out refinance option, you will be refinancing your current mortgage for more than you currently owe on the mortgage loan, and the difference is the cash you will take home at the signing.

Example: If you owe $90,000 on a $200,000 home, and know that you can get a better interest rate. You also know you want say $30,000 cash, to invest in a business, or put away for a college fund. You would refinance the mortgage for $120,000. You should ideally receive a better interest rate on the new mortgage, and the $30,000 cash you needed.

-M Petrone
Refinancing FAQ & Advice

When someone refinances their mortgage, all that means is getting a new mortgage, typically with better rates or terms, to pay off their old home loan. Typically, a home owner is able to save money by getting lower interest rates, a shorter term, or other special incentives. However, if you are having problems financially, a refinance is usually trouble.
Why wouldn't you want to save money on your monthly home payment? More than likely, a mortgage is the largest expense a person will ever have in their life. This, however, does not mean that you are necessarily trapped in a home loan that was a good deal 15 years ago when you purchased the home, but doesnt compare favorably to current loan terms. You still have the option to do comparison shopping for refinance quotes which may be better than your current rate. You do not even need to use the same lender you currently use.
Try to find a mortgage lender who works with a multitude of big financial houses, he should be able to get you 6-7 quotes from major mortgage lenders he works for. If you don't find anything that perks your interest there, keep going. Don't be afraid to throughly search for a better rate through a lot of lenders if necessary until you find one that fits your needs. Also, a person with bad or less than average credit should use a broker first, they usually have connections with mortgage specialists who deal with sub prime, or low credit, loans.
Often, someone decides to use their equity built up in their home as a way to get out of debt. This is a way to deal with nagging debts you feel you cant get in front of, but it is usually not a good idea. If for whatever reason, you refinance, and due to financial problems are unable to make 1 monthly payment on your house, you are dangerously close to losing your home.
Truly know what you are getting yourself into before considering a putting your home and everything you have in terms of equity vanish for a few dollars savings every month.
A good reason to pursue a refinance is to get out of a higher interest a ARM loan and get into a more stable and, at least these days, some of the lowest interest rates in history. With a fixed rate mortgage your payment will not vary 1 penny no matter what financial happenings are going on in the world.
With a ARM loan, your payment can and will vary based on current markets and the prevalent interest rates.
Make sure to read and reread every single piece of paper you are expected to sign. This way you will not be in for any surprises when your mortgage comes in the mail. If something seems odd, or not correct, ask about it and don't hesitate to back out of the deal anytime you feel something is at less than face value.

-M Petrone

Today, with almost everyone able to connect to the internet, the luxury exists of being able to check your refinance quotes, directly through the lenders website. With so many options available to the person interested in refinancing, this method of searching for the lowest possible quote is by far the easiest, most efficient way to do this. The lenders are also aware of this, and many times they will have a quote that is a little less online than it would be in person.

There are too many lenders available to quote online so do not just pick any of them. Pick 8 ( I know it sounds like a lot but it is online remember? Its fast and easy.) Instead google, mortgage lenders, from the vast list you get in return, pick your 8, first choose four you have heard of through tv and radio commercials, have seen at pro sporting games, etc. You may think you don't know 4 but you will easily recognize them once you see their names. Then, pick 4 lesser known mortgage lenders, but make sure they are on the first three pages within google, they are often reputable and competitive.

Apply to all the sites you have selected, wait for your quotes and then do some more research online about company. Look at their financial status, their history, the rate they offered you, and other related information. Weigh those things against how you feel, how much you will save, but dont forget to look up what other people have said either. You can easily search for "[companys name] review" and often get great results from people who have already used the lender you are looking into.

Learn to use a online calculator.

Most of the lenders websites have a calculator built in, that is a great source of information concerning your mortgage. All you have to do is enter some quick details about your loan, how much you need/owe, length of remaining loan and a few other things. You will instantly get great details and a pretty close quote to the terms that you will actually get.

Time for the negotiation

After you have picked out a lender, you can try to negotiate down the rate they quote you, you can use your research you did previously, and use the lowest quoted rate you a\saw and try to leverage that against them. More often than not, this works, and worst case scenario is nothing changes at all. Your rate wont go up.

A Few final notes

Do not forget that the quoted rate you see online is not the final amount. There are costs associated with refinancing, both short and long term that need to be considered. Do as much research as you can and be prepared.
-M Petrone
Refinancing FAQ & Advice

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