Thursday, May 23, 2013
Get Personalized Mortgage Rates
What You Should Know About Mortgage
Compare Mortgage Refinance Rates
Shopping around is always a good idea for not only when you are purchasing a product but mortgage. Compare all the costs involved in obtaining a mortgage and negotiate the terms may save you thousands of dollars.
Refinancing may be undertaken to reduce interest rate/interest costs, since the interest rate on your mortgage is tied directly to how much you pay on your mortgage each month--lower rates usually mean lower payments. Refinancing is used in most cases to improve overall cash flow. Refinancing also gives you an opportunity to change from an adjustable-rate mortgage to a fixed-rate mortgage
If you are current on your mortgage, but have negative equity FHA Short Refinance may be an option. Refinance your mortgage into more affordable, more stable FHA-insured mortgage. If your current lender agrees to participate in this refinance, they will be required to reduce the amount you owe on your first mortgage to no more than 97.75% of your home's current value.
Lines of Credit vs. Second Mortgage Loans
A home equity line of credit is a form of revolving credit in which your home serves as collateral. If you are thinking about a home equity line of credit, you may want to look into a traditional second mortgage loan. This type of loan provides you with a fixed amount of money, repayable over a fixed period
In deciding which is the best option for your, think about the costs under the two alternatives.
- The APR for a traditional second mortgage loan takes into account the interest rate charged plus points and other finance charges.
- The APR for a home equity line of credit is based on the periodic interest rate alone. It does not include points or other charges.