1st And 2nd Mortgage Refinance Loan - Consolidate 1st And 2nd Mortgages Into One Low Payment
Friday, December 15, 2006
Refinancing both your first and second mortgages will result in
one low monthly payment that could save you thousands in
interest charges. By combining both mortgages, you qualify for
lower rates than if you refinance separately. You can see a
significant savings with your second mortgage refinance, which
is often several points higher than your first mortgage rates.
You will also save on application fees and other closing costs.
Strategies To Lower Your Mortgage Payment
You have a couple of options to lower your mortgage payment
when refinancing. The first choice is to find a low rate
mortgage. So even if you choose the same length for your loan,
you will still see a savings in your monthly mortgage bill.
Adjustable rate and interest only loans will give you the
lowest payments, at least at the beginning of your home loan.
But a fixed rate loan can also give you reasonable rates with
security that they won't rise in the future.
The other option is to extend your loan term, especially in the
case of your second mortgage which usually is for five to ten
years. By consolidating your loans to a thirty year loan, you
lengthen your payment schedule for principal, so you have a
smaller payment. However, your interest rate and charges will
be higher than with a shorter term.
Getting The Best Loan
Once you determine the type of loan and terms you want, do your
shopping for a good lender to save even more money. Lenders will
vary in how much they charge for closing costs and interest
rates. The APR will tell you how loans compare overall, both in
terms of rates and closing costs.
But if you are planning to move or refinance again in the
future, then be wary of paying high closing costs. Even if they
secure you a lower rate, you will only see a savings if you keep
the mortgage for several years.
Don't base your lender decision based on posted loan rates. Ask
for a personalized loan quote based on your general information.
With more accurate numbers, you can make an informed choice as
to who has the best financing for you.
About The Author: View our recommended lenders to choose the
http://www.abcloanguide.com/refinance.shtml for you.
posted by Dennis Cheesman @ 7:41 AM,
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Turbo Equity-Building With A Mortgage Refinance
Friday, December 01, 2006
Refinancing to a shorter term can be a great way to give your
equity building efforts a jolt. This is because a shorter term
means that your interest is not stretched out over as many
years, so you pay less of it. Additionally, even though the
payments on the refinance loan may be higher than your original
mortgage payments, more of the money goes to the principal. And
this is how your home builds equity: by paying down the
principal.
What is equity?
Your home builds equity as you pay down the principal, or as
your home increases in value. Basically, equity is the
difference between how much your home is worth and how much
money you owe. For example, if you have a home that is worth
$150,000, to figure out the equity, you subtract how much you
still owe on your mortgage. If you still owe $90,000, the
equity in your home amounts to $60,000.
Boosting your equity
Because so much of your mortgage payments go to interest during
the first half of the term of your home loan, equity builds
slowly, especially in the first 10 years. If you have an
interest-only loan, the equity builds at an even slower rate.
If you want to boost the rate at which your home builds equity,
you can refinance to a loan with a shorter term. A shorter term
means that you will have to make higher payments on the
refinanced loan, but it also means that more of the money is
going to the principal, helping you pay down the loan faster
and building equity at a more rapid rate.
Advantages to refinancing to a shorter term
While the higher payments may be a deterrent to those whose
income has remained steady for years, someone who has received
an increase, and expects that increase to remain in place, can
derive the following benefits from refinancing a mortgage to a
shorter term, such as from a 30-year loan to a loan term of 10,
15, or 20 years:
· Lower interest rate for a shorter term means you pay much
less in interest
· Shorter term means that the principal goes down faster,
quickly building equity
· Less money is paid out in interest on account of fewer years
to spread the loan over
· House is paid off faster, freeing the funds sooner than if
you had a 30-year mortgage
Of course, before refinancing for any reason, you should make
sure that your current mortgage is not subject to prepayment
penalties.
About The Author: Visit http://www.refinancesmarts.com for more
information on how a
http://www.refinancesmarts.com/mortgage_refinance-3_reasons_to_refinance.shtml
can help build equity in your home.
posted by Dennis Cheesman @ 7:41 AM,
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Things To Consider With Real Estate Torrevieja
Real estate Torrevieja is very popular for a vacation home,
retirement or investment purposes. Some buy for their own use
as a vacation home and others buy for investment and use the
property as a rental. Torrevieja is one of the livelier tourist
areas with a good night life, bars, restaurants, tourist
attractions and many other amenities.
Things to Consider with Real Estate Torrevieja
Take your time when shopping for real estate in Torrevieja.
Plan several vacations to the area. Rent the type of property
you are considering purchasing when you visit. If you are
unsure, rent an apartment on one trip and a villa on the next
to get an idea of what you want.
Each time you visit, stay in a different area, both in the
center of town and off the beaten track. This will allow you to
get a feel for different areas. You will be able to see where
you want and don't want to be. Visit in different seasons as
well. This will give you an idea of the area at different times
of the year.
Consider the amenities and attractions near the property. Is it
near shopping and restaurants? How far are the beaches and other
attractions? Consider where you will spend your time when
looking at property. Ideally, you want something that is near
activities you enjoy and places you are likely to visit.
Also, consider the proximity of public transportation. Will you
use public transportation when you visit? Do you want to have to
rent a vehicle for every trip? If you want to spend long
weekends without renting a vehicle every time, you may want
something that is near to public transportation. If you plan to
always have a vehicle, you may not care about this feature.
Think about the future when looking at properties. Think of how
the property will be used in different seasons and for long term
stays. If you plan to use it in every season, be sure it has a
sufficient heating and cooling system. If you are purchasing an
apartment in a large building, consider convenience for longer
stays. Will you want to carry groceries up four flights of
stairs on a regular basis?
Loans for Real Estate Torrevieja
Property prices are at near record high levels in the last few
years in this area. Most European buyers can qualify for loans
from Spanish companies. You could also take a loan from a
lender in your home country. Compare prices with both to find
the best terms for your loan.
When applying for a loan with a Spanish lender, it's important
to be familiar with Spanish culture and real estate laws. An
English speaking attorney can help you in this area. Your
attorney will oversee the process of applying for a mortgage
and read over the purchase agreement. It's important to have
someone looking out for your interests if you are unfamiliar
with the process.
Shop around for a loan. Don't settle for the first offer. Many
lenders will match or beat competitor's rates. Interest rates
are often negotiable. You may be able to get a better rate if
they know they are in competition for the loan. This is true
with both Spanish companies and most lenders in other European
countries.
Start early to get together the paperwork needed for your loan.
What is needed can vary by lender and depending on the country
of origin. Some of the documentation you will need includes: a
copy of your passport, proof of income, paychecks, income tax
returns for the past three years, bank statements and
information about the property you are purchasing.
About The Author: Peter J. Mason published especially for
http://www.alicante-spain.com , an online site on Spain and
Alicante. His articles on real estate torrevieja are found on
http://www.alicante-spain.com/torrevieja-real-estate.html and
other online publications.
posted by Dennis Cheesman @ 7:41 AM,
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