Considering refinancing? There are so many alternatives, how to pick the right one? We have gathered the most useful and up to date information for choosing the right refinancing option for you. We hope this site proves useful for you in your quest! Don't forget to bookmark us!

Refinance questions you should ask yourself

by Mike Rad

Before you even consider a refinance, ask yourself this fundamental question: "Why do I need it?" "Many times, people take out a new, larger loan to pay off credit cards, automobiles or even to purchase another home," says Norm Bour, host of the nationally syndicated U.S. radio program The Real Estate & Finance Show, and an experienced mortgage lender. "Sometimes they need the money to do home improvements or renovations." If, however, you want to lower your current loan payments or switch to a different type of loan, you must calculate the benefits before going the re-fi route. "If someone is going from a fixed loan to another fixed loan, my general benchmark is to see a 1% reduction of interest rates to justify it," says Bour, who also teaches money-management classes in Southern California. "Sometimes the borrower goes from a

fixed-rate loan to an adjustable to lower his payments. Sometimes he does just the opposite-maybe to get away from interest-rate volatility. These are very personal decisions, specific to each individual client."

You may already know-or suspect-that you will not live in your current home beyond a certain timeframe (perhaps 5 years). If this is the case, why would you even consider a 30-year loan? "Sometimes, an adjustable-rate loan or a 'hybrid'-say, a 5-year fixed, then converting to an adjustable-makes the most sense," Bour says. Find out more here: ">http://www.mortgage-for-all.com/50047.php"> Home Mortgages: Think Before You Borrow

Do your homework before trying to qualify for a new loan. You should know: ? The approximate market

value of your property, as "loan to value (LTV) is one of the primary factors that control interest rate," Bour says. ? Your credit score, which will affect your overall ability to secure a loan, as well as the interest rates offered and the options available to you.

In certain cases, refinancing may not yield "a monetary savings, per se," Bour says. This means there must be "compelling reasons" to secure a new loan, he emphasizes. "A good loan officer will ask a series of questions to help the borrower identify his best option," Bour says. The officer should: ? Assess your current monthly cash flow and potential future risks. ? Calculate your monthly savings if you were to refinance. ? Determine how long it will take you to break even. ? Fully explain the different types of loans and interest structures. ? Disclose

all closing costs and "hidden" fees (origination fees, escrow, title, underwriting, interest, taxes, insurance, prepayment penalties, etc.). ? Treat you with respect and as an individual-not come up with a one-size-fits-all, cookie-cutter approach to your financial future. Find out more from our huge collection of expert mortgage and refinance collection at: Expert Mortgage Advice

Other resources:

* Re-mortgage * Expert Web Hosting Advice * Expert Dog Training * Health advice on numerous conditions

About the author:

None

Related Articles

Deciding if the Time Is Right to Refinance
Choosing to refinance a loan can be a major decision, especially if that loan is a major loan such as a mortgage or automotive financing. If you refinance your loan too soon, you might end up doing more harm than good and not be able to do much...read more

Florida Refinance - Refinancing in Florida
The decision to buy a home in Florida can be one of the best you will ever make. If you own a home in Florida you may be considering refinancing. Refinancing now can potentially save you thousands of dollars over the length of your mortgage. Florida...read more

Home Mortgage Refinancing - should I refinance?
Why should I refinance and when does it pay to do so? Refinancing can be worthwhile, but it does not make good financial sense for everyone. A general role of thumb is that refinancing becomes worth your while if the current interest rate on your...read more

Mortgage Loans Should I Refinance Now with Rates Increasing?
When rates are rising should you consider refinancing your mortgage loan? When rates are falling this is a moot question. Of course you should consider doing a refinance whether it be a fixed loan or home equity loan. When rates are rising you...read more

Motorcycle Refinance Explained
If you have at one time or another bought a motorcycle, then you probably heard of the term motorcycle refinance. But what is motorcycle refinance, exactly? Lets go down to the basics. The term motorcycle financing refers to the act of providing a...read more

Refinancing Second Mortgage Knowing When To Refinance
Timing the refinancing of your second mortgage is just as important as finding low rates and fees. Before you decide to refinance, make sure that you have a clear benefit. Either save money with lower rates or protect yourself with the security of a...read more

To Refinance...or Not, That Is The Question???
What does it mean to refinance? Why would someone want to refinance? There are many cases when a person would refinance. When we use the term refinance, we are typically referring to a loan such as a car or house loan. It may also be a business...read more

Need more information? Try a search:

Google