Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Refinance Home Loans and Saving on Your Mortgage Payments

By Crowin Smith Subscribe to RSS | November 30th 2011 | Views:
loading
 
  



There are dozens of personal reasons why you could choose to refinance your existing mortgage. Among the top reasons why today’s home owners would want to switch to a new mortgage is to benefit from the effects of lower mortgage rates. Consider this: if the current mortgage rates have drastically declined since you had your first mortgage approved, refinancing your existing loan to avail of better rates can help you generate some savings by reducing your mortgage costs.

If you want to pursue refinance home loans, you definitely would want to consider other mortgage types. For instance, you could consider getting a home loan with a shorter mortgage term. If the mortgage term of your current loan is 30 years locked in fixed rate, you could opt to refinance and get a 10- to 20-year loan. Doing this allows you to save money because your interest payments will be down, aside from allowing you to settle your mortgage debt sooner.

If you have a variable rate loan, you can opt to refinance and switch to a fixed rate mortgage. This would allow you to relax knowing that there won’t be any changes in your mortgage payments throughout the whole fixed rate period. But if you have a fixed rate loan and you are planning to leave your house after a couple of years, you should definitely get a variable rate loan simply because of the low interest rates during the initial mortgage term.

Just like what you did when you bought your first home, you need to determine what kind of loan would be perfect for your current circumstance. Basically, this loan should allow you to live in your house without straining your budget.

But how exactly do you know if it’s worth it to refinance? To find out, you need to compute the total cost of refinancing. The answer will definitely tell you what to do next. You will be able to determine the period it will take to break-even. If you have no plans to leave your home or if you intend to stay until you break-even the mortgage costs, then you should definitely refinance and get another loan.

As a rule of thumb, the best time to refinance is when the interest rates go down by at least two points. But sometimes, even a 1 percentage point drop in rates could still afford you a relatively good deal. If you try to get a new lender, they might agree to a reduction of points or entirely waive off the application, title check and credit check fees.

One thing that could hamper your plans to refinance is the prepayment penalty from your existing mortgage. This, however, differs per state and per lender. Just try to clear this one up with your current lender before jumping into the refinance home loans bandwagon.

Crowin Smith - About Author:
For more information regarding Refinance Home Loans, Please visit Cashbackmortgage.com.au

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/mortgage-articles/refinance-home-loans-and-saving-on-your-mortgage-payments.htm

Related Mortgage Articles Subscribe to RSS

How can a mortgage loan calculator help you save
Published by Apil Gupta on June 24th 2012 | Mortgage
There would be many of you out there who would be considering taking a mortgage loan for fulfilling ...
 
Looking for refinance mortgage loan - How to find the right one
Published by Apil Gupta on June 24th 2012 | Mortgage
In case you are looking to refinance mortgage loan for your home, there are many things that need co...
 
The best mortgage rate can make your dream come true
Published by Jack Smith on April 12th 2012 | Mortgage
The best mortgage rates can fulfill your dreams at a dreamlike cost. Get yourself the best deal in t...
 
Your guide to getting the best mortgage rates
Published by Jack Smith on April 18th 2012 | Mortgage
A systematic and well guided approach will certainly assist you in achieving the best mortgage rate ...
 
Tips to taken into consideration while choosing mortgage brokers
Published by Geno on March 28th 2012 | Finance
Majority of the home buyers get struck off when it comes to mortgage loans. Lack of knowledge about ...
 
Find the perfect california mortgage broker online
Published by Apil Gupta on June 24th 2012 | Mortgage
The importance of finding a good California mortgage broker online is paramount in today's times, pa...
 
The top 5 most preferred mortgage types
Published by Apil Gupta on June 24th 2012 | Mortgage
When it comes to choosing the mortgage types that are available to a home buyer, the options are apl...
 
Explore the different options of mortgage rates available
Published by Jack Smith on April 14th 2012 | Mortgage
It is advisable to first thoroughly investigate about the most lucrative mortgage rate in the market...
 
The real truth about mortgage rates
Published by Jack Smith on April 16th 2012 | Mortgage
While mortgage rates may differ with several companies and diverse plans¸ a good, hard-working barg...
 
Fall in mortgage rates leads to better home sales
Published by Apil Gupta on July 16th 2012 | Mortgage
Riding high on the phenomenally low mortgage rates, there has been an increasing demand for new US h...
 
Good mortgage rates are important for a comfortable mortgage period
Published by Jack Smith on June 22nd 2012 | Mortgage
Get mortgage rates that you can easily pay off even in the future because a mortgage affair can last...
 
The coming back of the long-term fixed rate mortgage
Published by DavidVila on February 14th 2012 | Mortgage
There is a return of long-term deal of mortgage that is as long as 7 years as well as 10 years. Skip...
 
Understand and consult bad credit mortgage rates
Published by Jack Smith on July 23rd 2012 | Mortgage
The people seeking bad credit mortgage rates first require to conduct complete research and pay atte...
 
Why is an adjustable rate mortgage so popular?
Published by Apil Gupta on June 24th 2012 | Mortgage
An Adjustable Rate Mortgage (mortgage ARM, for short), also known as the lender's Standard Variable ...
 
Lay your hands on the best mortgage rate in the market!
Published by Jack Smith on April 14th 2012 | Mortgage
While it may be a challenge to find the best mortgage rate¸ a good lender company can always make y...
 
Best mortgage rate California – Use these time-tested tips
Published by Apil Gupta on June 24th 2012 | Mortgage
Finding the best mortgage rate California is more often than not like locating a needle in a haystac...
 
The best way of getting bad credit mortgage rates
Published by Jack Smith on June 20th 2012 | Mortgage
Be careful of getting axed by any broker while finding the best bad credit mortgage rates, as mean p...
 
Bad credit and mortgage refinance option
Published by Kam Brar on December 16th 2011 | Finance
As people think, it is not easy to get mortgage refinance with bad credit. There are various factors...
 
All you need to know about affordable home refinance loans
Published by Apil Gupta on June 24th 2012 | Mortgage
In the present scenario, having a healthy credit score is certainly a utopian situation, more so aft...
 
Get out of a bad credit mortgage situation
Published by Jack Smith on June 20th 2012 | Mortgage
If you need a bad credit mortgage, there is no doubt that you are in a tight fix. But bail yourself ...