Monday, December 19, 2011

How to Get a Lower Interest Rate Refinancing Home Loan

It could be easy to find a low interest rate home refinancing loan. There are practical and logical ways to do so.

Mortgage Refinancing

Refinancing an existing mortgage is a timely option for many distressed home loan borrowers these days. If in the past, most borrowers simply accept facing foreclosure and losing their homes if they fail to repay the debt amount. Now, such borrowers could still do something to avoid the unlikely occurrence. Through a low interest rate home refinancing loan, any borrower could take a fair chance of getting enough and necessary leverage for financial recovery.

The recent recession has truly made life harder for many people, at least financially. Its impact is still very much felt. Experts warn that it may take some time before affected people overcome the financial burden brought about by the event. This is most especially true for consumers who have lost businesses and jobs, incurred poor credit scores, and defaulted on mortgages that lead to pending foreclosures of their properties.

Loans With Competitive Rates

It is logical that when borrowers apply for any home loan refinance product, they initially look at the refinancing interest rate. This is because the rate would greatly have an influence on how they could maintain and keep the loan. As usual, higher rates would be much more of a burden because they would lead to higher loan costs in the long run.

If you are considering applying for one, you should aim to find and secure a low interest rate home refinancing loan. Do not worry because it is now more possible for anyone to do so. You could do it easily and effectively even if you have a bad credit status, which usually lead to more expensive loan rates.

Comparison Shop And Loan Application

To be able to find the best rate, it is appropriate to run a practical comparison shop. By doing this, you could easily compare the existing rates of different home loan refinance providers. Thus, it would be much easier to spot the specific loan products that are more advantageous to you. To do a thorough and more effective comparison shop, it would be best if you would get quotes from at least five different loan providers.

Look at every quotation you get. This is an imperative part of the comparison shop. Next, look at differences in terms and conditions. Make sure, you compare products with the same maturity, term, or duration. Usually, short-term loans take higher rates compared to longer-term ones.

Choose the provider with the lowest rate. This is logical because you should aim for a product that is least costly on your part.

By: Julian Lim
Are you wondering how you could secure a low Refinance Mortgage Loan Home Rate? Check out the link Bad Credit Home Refinance to find insights.

Thursday, December 1, 2011

Home Refinancing - How to Refinance Your Mortgage to Prevent Foreclosure

Hundreds of thousands of families have received the dreaded notice of foreclosure proceedings. Many families assume that a foreclosure notice means the writing is on the wall.

They may not know that you can refinance your mortgage and prevent foreclosure more often than not. There are some steps you will need to take, difficult steps, but it can be done. And it will be worth it.

1. Don't avoid talking to your lender. Pull out your mortgage statements. Find contact number for your lender. Call them right away. Ask them these questions: What is the total cash amount I need to send you to resolve my account?

Write that number down. Is there any way I could refinance this mortgage to terms I could afford in my new situation? What cash would I need to bring to the table to refinance? Can I extend the terms of my mortgage to lower the payment? (This makes them more money over the long haul, and saves your credit.)

2. Raise cash to refinance - if your lender is willing to work with you to refinance your mortgage to prevent foreclosure then you will likely need cash. Only if your credit is excellent, and your financial future now secure, will you be able to wrap all the expenses into the mortgage in this lending climate.

Don't rule out any means of building cash to help you refinance your mortgage to prevent foreclosure. Get a part time job for the short term. Cut out the internet and the cable if that will help. Get personal loans using legal promissory notes from family members if they mention they are willing to help. Don't even be afraid to send out a letter asking for support or help. You will be surprised what help you might receive if you are a trustworthy and loving person.

3. Talk with other banks about a refinancing mortgage. You do not have to go with your current lender to refinance your mortgage to prevent foreclosure. They are the best place to start since many lenders will be flexible with current customers to keep them on the books, especially if they realize you have other lending options.

Your mortgage makes them money the longer they keep it and you pay it. But it cannot hurt you to check with other lenders on the costs to refinance your mortgage and prevent foreclosure. If you can refinance cheaper and prevent foreclosure easier why wouldn't you? Ask them for their APR (annual percentage rate) that you could likely receive with your credit and cash. Then compare their APR with your current lender's APR offer. The APR wraps in points, closing costs, etc. and gives you an apples to apples comparison that a flat lender rate (the lower rate that is often quoted) cannot give you.

The biggest determinant of whether or not you will be successful in your attempt to refinance your mortgage to prevent foreclosure is determination. Determination will lead you to make the calls, ask the tough questions, persevere in contacting the right people, ask for help when you need it, and work the plan you create to make your refinance happen to prevent foreclosure.

Don't give in! Keep pushing and you will find a way to refinance your mortgage and prevent foreclosure. You can keep your home, and keep your dignity if you are determined.

By: Dave Ward
Dave Ward is a real estate investor, professor, and freelance writer. Remember that a When to Refinance Rule of Thumb can help you avoid foreclosure in the first place years before it happens. Follow this link to find out how to make foreclosure refinancing happen.