Okay we’ve talked a lot about Refinancing your loan. But how to do it? What are your options? In this first part, we’re going to show you what options you have when it comes to a refinance move. Your home mortgage will go a long way yet.

Continue reading Refinance Your Loan! Here are Some Ways – Part I

When people think about refinancing a mortgage, they typically think about the existing, conventional loan on their home. But a reverse mortgage — a financial product increasingly popular among older adults — also can be a candidate for refinancing.

First, some background. A reverse mortgage allows homeowners who are 62 or older to borrow against the equity in their property. The proceeds can be taken in the form of a monthly check, lump sum or line of credit. Hence, the word “reverse”: Instead of a homeowner making payments to a bank, for instance, the bank makes payments to the homeowner. The loan is repaid, with interest, when the borrower sells the house, moves or dies. While these loans have their drawbacks (including the potential for some steep fees), more families are using them as a way to produce income without having to dump assets like stocks in a volatile market. To date, sales volume this year is up about 20% from 2002, according to the National Reverse Mortgage Lenders Association, a trade group based in Washington.

Why refinance?

By taking advantage of four changes since you first acquired a reverse mortgage — in your age, the value of your home, interest rates and the size of loans insured by the Federal Housing Administration — you might be able to put more cash in your pocketREFINANCING IS AN OPTION WITH REVERSE MORTGAGE…. .

A small consolation of the mortgage crisis are the depressed refinance mortgage rates that are now available. These historically low rates make refinancing a very lucrative option for a lot of people, for extra money to spend or to save. But before you make a move take advantage of cheap refinance mortgage rates, you have to make sure to do the math and make sure that you don’t end up spending a lot when trying to close a refinancing deal. Here are some tips

Continue reading Take Advantage of Cheap Refinance Mortgage Rates

There is now a new era of “historically low” when it comes to mortgage rates and there is nothing like it.

Four years ago when we were all celebrating the arrival of already “historically low” mortgage rates. Back then, they were dancing at around 5.5% for a 30 year fixed mortgage which was truly significant back then because in the preceeding thirty years before that, 30 year fixed mortgages never posted a rate lower than 6.5% and actually climbed to 16+% at one point during the early 90’s.

But now, rates have reached a new low. Thanks to movements by the feds, rates could now hit 4.75% depending on your creditworthiness. That is almost one percent lower than the previous historic lows of half a decade ago. Last month, the national average rate was just a little over 5 percent.

People are aware of this opportunity now and refinancing activities have jumped up by over sixty percent in December, according to the Mortgage Banker’s Association, although these activities only count refinancing applications which may or may not become actual mortgages.

As a rule of thumb, refinancing makes sence if the new rate is about 1% lower than the old mortgage. At this rate it makes more sense any less and the upfront fees make refinancing expensive.

If you are looking to save some extra cash, it might be a good idea to look into refinancing your existing home mortgage. Granted, it may not be for everyone.

Home mortgages right now are so crazy. What should we do about them? All of a sudden, the Rich Dad Poor Dad thinking doesn’t seem so smart.

Continue reading Home Mortgage Rant