Jan
18
Truth About Refinancing
by: Brian ONeal
Let’s face it, not everybody needs to refinance. With all the hoopla about Low Rates and the Refinance Boom, you want to know the facts. You want to know when refinancing is right or wrong and why? Okay, I’ll tell you.
It is actually quite simple. You should refinance when you have credit card debt exceeding $10-15,000, depending on your situation. Because you will receive a tax credit at the end of the year on your mortgage. Also, there are programs designed to keep your rate low for one, two, or three years until you’ve saved money on your credit card debt.
You should also look into refinancing if you’ve been in your home for over one year and your interest rate is above 6.5% or if your loan-to-value ratio is at 80% or less. Call a mortgage professional about this. If you do not fit into either of those situations, they you shouldn’t refinance!
So call a mortgage professional now and see if you can save a buck or two! I promise it won’t cost you a penny to call and ask. Happy Hunting!
About The Author
Brian ONeal is a senior Mortgage Broker with http://www.scapmortgage.com/ . If you need a home loan or just need to speak with a specialist to make sure your getting the best deal please visit www.scapmortgage.com.
What Made You Decide To Get Fixed Interest Mortgage Rate
You may experience confusion in choosing between fixed interest mortgage rate and variable systems. This article below can help you in giving an idea to make into your decision.
If your mortgage fixed rate, repayments will be more expensive but your budget will be safe and fixed, regardless of what is happening to interest rates in general. For instance, if you take a loan to say with 5% interest fixed for 5 years “and even if mortgage rates to fall to 1% or 20%, you will still be charged 5% for next 5 years. This sort of” betting ” you enter into. If mortgage rates rise to 20%, you win, because you still have to pay 5%. If they are down to 1%, then you lose because you are still paying them 5%.
When you are paying the fixed rate, you will not pay your mortgage off early, you will not get a discount because interest rates have declined, you will still be in “fixed” interest.
Depending on how much debt you are, how much the interest rate you pay at this time, the length you have left to run until the end of 5 years and the number you will be charged a penalty for ending your agreement. You are able to change your mortgage to a variable one, especially if you prefer a new security, lower, fixed rate mortgage. Only in this way, by using the extra money would you have paid, you may be able to pay off your mortgage earlier.
Noteworthy is by considering your budget and ask yourself whether you are able to really afford to risk attending a variable rate (i.e., if interest rates go up, you can pay the mortgage, or will you fight).
With prices at all-time low point would be a shame to not lock it in. With all the ups and downs that the market will experience during the next 30 years mortgage you know you may not pay a big difference but with a variable rate there will be some months you may have extra finances and others where you are struggling just to make a payment.
If you cannot take that risk, there has no harm in wanting stability by choosing the fixed interest mortgage rate.
By: Coman Goodson
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Coman Goodson is the owner of www-mortgage.us which provides Free mortgage reports, news, rate and calculation. Click here to read latest advice on fixed interest mortgage rate.
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