Home Loan Mortgage Information

Refinancing Mortgages

Options for refinancing mortgages

Refinancing a home mortgage can be a tricky subject.  There are many refinance mortgage programs out there.  You have Cash out refinance programs,  debt consolidation refinance loans and I just want to lower my payment home loan refinance programs. There really is only five scenarios I can think of that would make you want to refinance.  You might have a special reason to be looking for a refinance mortgage program but these should be the majority of the reasons most people refinance.

•You have an Arm Loan and want to lock in a interest rate on a fixed rate loan
•To lower your monthly home loan payment as little as a 1% percent change can make a big difference in your monthly payment
•Consolidate a first and second mortgage to a new lower rate
•Get Cash for whatever you might need it for like college tuition or a new business you want to start
•Consolidate other high interest payments like credit cards or that bad loan you made with your brother in law

The biggest reasons you should not be looking at refinance mortgages programs.

How many years have you already been paying on your home mortgage?  If you have already been paying on it for more than 5 years your monthly payments are applying more and more toward the principal of your mortgage.  Banks really don't tell you this but they basically earn their interest rate right up front.  When you start a loan the majority of your payments are being applied towards the interest of the loan.  AS the months go by your payments will start applying more and more towards the principal of the home loan.

If your credit has been on the decline since you have gotten your current loan.  Please check your credit before applying.

Has your house lost value?  If you had paid your mortgage below 80% you weren't required to have mortgage insurance.  If you go and get a loan and your house value has decreased you might have to pay mortgage insurance or worst yet you might not get a loan.

The next one and final one is for the person who is going for the debt consolidation loan.  During my years as a loan officer I helped many people consolidate their debts which greatly reduced their monthly payments to make them much more manageable and gave them breathing room.  I will not forget when I was at the closing table and had just finished all the paper work and handed them all the checks to pay off all their debts.  When the husband turned to the wife and said "NOW WE CAN GO BUY THAT NEW THUNDERBIRD" .  I couldn't believe what my ears just heard!  This guy was not be sarcastic or joking as the wife responded to his statement but I will never forget those words.  Here I was just barely able to get these people into a refinance mortgage program and they were already talking about racking the debt up again.  I am going to say this Loudly IF YOUR NOT GOING TO STOP ADDING DEBT AFTER YOU REFINANCE THEN DONT REFINANCE!  Please stop thinking about refinance mortgage programs and go get some counseling first.  By the way that was back in 1997 when that person said that and I still remember that so vividly.  Just please make sure you are refinancing for all the right reasons.

Back to refinancing mortgages top.

• FHA Refinance Loan
  
  FHA refinance loan could help you save hundreds of dollars a month. Even if you have bad credit you can get a FHA refinance mortgage.
• Refinance Second Mortgage
  
  How to refinance second mortgage and lower your monthly payments.