|
When
you need a quick and easy refinance of your home
or investment property, try Constitution 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 are
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.
Top
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.
Top
The
decision on 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.
Top
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 on to your home. How ever
you decide to spend the money, your mortgage broker
can help you through the process.
Top
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 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.
Top
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.
Top
Refinancing makes sense for many of our
clients because refinancing can result in 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
broker will also help you understand the tax
write off associated with a second refinance. The
money that you save can be used to build
emergency cash funds, build additions onto your home,
or save for a child's college fund.
Top
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.
Top
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.
Top
|
