| When
you need a quick and easy refinance of your home
or investment property, try Golden Rule Mortgage. Our customers have said that our speed
of processing, knowledgeable staff and aggressive
programs set us apart from our competition.
Below is some helpful
information to help you get started. Click here to get started right away.
There
many things to consider when refinancing your
home loan. The fees associated with refinancing
can add up quickly, so many mortgage companies
will waive fees associated with refinancing applications
and legal fees. This fee reduction can amount
to large savings for the home owner but may result
in a slightly higher percentage rate than expected.
It is important to talk about your loan options
with your loan officer. Additionally, the amount
of time you plan to spend in your home will impact
your decision to refinance. Many mortgage lenders
will allow home owners who expect to live in their
home for a minimum of three to five years to pay
points and closing costs upfront. This option
ensures the home owner obtains the lowest percentage
rate available.
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Saving
money is important to many consumers in today's
economy and refinancing your home loan is one
way you can lower your monthly payments. A careful
analysis combined with the advice of your mortgage
broker will ensure that you make the right decision.
The costs associated with refinancing are similar
to those of obtaining an original home loan and
include legal fees, application fees, settlement
costs, and other related fees. When refinancing,
additional fees will arise and they can include
a fee charged if you paid off your original mortgage
early, the points associated with the refinance,
and the home loan interest rate. Typically the
cost runs between three and six percent of the
total amount of the home loan. However, many mortgage
brokers can offer zero point loans and low-cost
refinancing. Therefore, even if your rate change
is less than one percentage point, you may be
able to save some money by refinancing. Contact
your home loan advisor to discuss the various
costs and laws governing the fees charged by mortgage
companies and the potential savings you can enjoy.
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The decision whether or not to refinance has, in
the past, meant balancing the savings of a lower
monthly payment against the costs of refinancing.
In recent years, mortgage lenders have introduced
"no cost" and low-cost refinancing packages
that minimize or completely eliminate the out-of-pocket
expenses of refinancing. With traditional refinancing,
the interest rate for your new mortgage is often
about 2 percentage points below the rate of your
current mortgage. However, with the newer low
and no-cost refinancing programs offered, home
owners can find it valuable to refinance to obtain
a smaller reduction in interest rates.
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Many mortgage lenders will offer a
refinance package where you refinance for more than
the balance remaining on your old home loan. In
the mortgage world this is called cashing out.
The economy has also caused interest rates to
drop recently which may allow you to refinance your
home without increasing your monthly payments. The
extra cash that results from refinancing can be
used for many purposes; one of the smartest ways
to use these funds is to pay off any loans
with higher interest rates. If you are in a
positive position regarding debt you may be interested
in using the money for a more enjoyable purpose,
such as building an addition to your home. However
you decide to spend the money, your mortgage broker
can help you through the process.
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When
home owners make the decision to refinance their
home loan they must decide which interest rate
will work best for their situation. There is typically
a range of interest rates at different amounts
of points. Remember, a point is equal to one percent
of the loan amount. When you work with you your
home loan representative you will be able to analyze
the different interest rates and related points,
which can save you money. Some combinations of
interest rates and points may cause your monthly
payment to increase though. Be sure to discuss
all options with you home loan advisor before
making a decision.
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The
costs associated with refinancing are similar
to those of obtaining an original home loan and
include legal fees, application fees, settlement
costs, and other related fees. When refinancing
additional fees will arise and they can include
a fee charged if you paid off your original mortgage
early, the points associated with the refinance,
and the home loan interest rate. Typically the
cost runs between three and six percent of the
total amount of the home loan.
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Refinancing
makes sense for many of our clients because refinancing
can result valuable savings. Now is also a good
time to refinance for a second time. The timing
is important because when interest rates are falling
quickly you can reduce your monthly payments even
further. Your mortgage brokers will also help
you understand the tax write off associated with
a second refinance. The money that clients are
saving can be used to build emergency cash funds,
build additions onto their homes, or they can
save it for a child's college fund.
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Home
owners have two rate options when refinancing
their home loan, fixed rate mortgages and adjustable
rate mortgages, often referred to as ARMs. ARMs
are attractive in today's economy because
they offer very low introductory rates but due
to financial market instability these rates can
jump quickly and homeowners may find themselves
paying more than they had bargained for. Adjustable
rate mortgages are not always unpredictable though.
Homeowners who know the length of time they plan
to stay in their home may secure an ARM for that
specific amount of time, which will save the homeowner
money and avoid rising payments.
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Mortgage
brokers are knowledgeable of the laws governing
taxes that are related to mortgages. Many homeowners
find the tax issues related to the home loan refinance
process confusing, but your mortgage broker will
guide you through the process. To explain briefly,
the Internal Revenue Service (IRS) has ruled that
interest paid for refinancing must be deducted
over the life of the loan. However, if the home
loan is being used to make improvements to your
house, the borrowers may be permitted to deduct
a portion of the interest right away. The exact
tax laws concerning refinancing are complex and
the details should be discussed with your mortgage
broker. The IRS website, www.irs.gov, may also
be helpful when gathering general information
on the subject of taxes and refinancing.
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