Are you looking for information about foreclosure refinance? This article will point you in the right direction.
One of the most important things to remember is to get your mortgage and refinancing information from the best sources. Instead of just haphazardly looking around the search engines, make sure to check out established websites. It is usually good to compare the commercial offers to knowledgeable information sites like industry blogs. Here I’ll stick to the most basic information about foreclosure refinance and you can click the various links on this page for more info.
If you want to find the best rate for refinancing your home mortgage, or if you just want more information on 80-20 loans or other financial instruments you can expect to come across, first make sure you understand the ins and outs of why you should even consider refinancing in the first place.
Refinancing is basically getting a new home loan to repay the existing mortgage on your house. This is especially beneficial when the new loan has a lot better terms than your original loan. This can net you substantial savings.
Why refinance? Lots of things that make your credit score fall tend to resolve themselves over time. Bad items on your credit report, even major ones, usually stay there only for a few years. Once they fall off your credit score can go up a lot higher, making it a no-brainer to refinance your home mortgage loans. Also if your financial situation changes to the point where you are making more money, it could be wise to get a shorter-term mortgage to save on the amount of interest you pay. Also if your financial situation changed for the worse, you might want to consider refinancing with a longer term, which will save money on monthly payments.
You may encounter 80-20 loans. You can find more detailed information elsewhere, but the basics are that 80-20 mortgage loans are a way to get enough funds to buy a home, while in the meantime avoiding private mortgage insurance. The 80-20 loan is actually two loans in one. The first loan is for 80% of the house sale price, while the second loan is for 20% of the house sale price. Use this loan as a way to
In this economic climate when many people are living from paycheck to paycheck, it can be very beneficial to find a refinance option that saves you money on a monthly mortgage payment. If you refinance you can decrease both the monthly payment and the amount of interest being paid every month. Another benefit for homeowners in choosing to refinance is that it consolidates existing debts. To do this you would use your existing equity on your mortgage as collateral to get a new low interest loan which can repay other existing debts. So you can use your mortgage to gain a larger loan in order to pay off whatever other loans that may be charging you a high interest rate.
Filed under Foreclosure Refinance by 
Is an Fha Loan Refinance Right for You
Are you ready to refinance? An FHA loan refinance may be just the ticket.
If you are a homeowner, you have already experienced applying for a mortgage. According to FHA, refinancing with this insured mortgage is the same as applying for any other home loan but in addition qualifying standards are easier and protections better.
The following six pointers from the Federal Housing Administration will help you decide whether an FHA loan refinance is worth pursuing.
1. Do you currently finance with an FHA home loan?
If you do, there are a few more options available to you such as an FHA streamline refinance. Call the toll free number of your lender to ask what type of program finances your home if you aren’t sure. Either way you can still take advantage of an FHA loan refinance.
2. Why are you refinancing?
Perhaps you intend to take advantage of the current interest rate environment. Consider combining high interest debt into your mortgage. If you intend to make some home improvements, you may be contemplating the option of taking out cash from a portion of your equity.
Whatever your home loan refinance goals are, knowing your primary purpose to refinance will help determine if there is an applicable FHA refinance mortgage for you.
3. How much can you afford?
Most people let their lender tell them what they can afford but there is a fundamental difference between affordability and qualification.
I looked up afford in Merriam-Webster’s Online Dictionary. Afford means manage or bear without serious detriment.
But no lender can tell you what you can manage without detriment to your financial affairs. Only you can decide that. So before you contact an approved FHA lender, give some serious thought to how much you can afford in a home loan.
4. Shop for an FHA approved lender.
Contact several lenders. Prepare a cheat sheet telling why you are in the market for a refinance and that you are considering FHA home loans. Not all lenders are approved by the Federal Housing Administration so ask upfront if they have approval.
Compare mortgage closing costs and interest rates between lenders. Ask for a preliminary Good Faith Estimate detailing fees, loan amounts, interest rate, loan program and monthly payments. Then simply compare the information.
Also ask when you can lock in your interest rate, for how long, and if there are charges for locking, upfront or included in the loan. Find out the policy if interest rates were to drop during the FHA loan refinance process. Request and review a written rate lock agreement before making application.
5. Ask to be prequalified upfront.
Prequalification works well for refinancing because it is not as in depth as mortgage preapproval. Because prequalification is informal, you don’t need to provide social security numbers. This eliminates multiple credit inquiries.
Getting prequalified by a lender helps to estimate the amount you will be qualified to borrow. The amount will be based on simple criteria, for example salary, debt ratios, and whether you’ve had a foreclosure or bankruptcy in the past.
Most mortgage brokers will do this over the phone or in person if you prefer.
6. Now it is time to apply for the FHA refinance mortgage.
Your lender will order your credit report and give you a checklist of documentation they require to process your FHA loan refinance.
No need to put off refinancing when FHA could be your open door.
Kate Ford at Get Your Best Mortgage Rate is on a mission to save homeowners and home buyers time and money. Would you like the keys to unlocking your best mortgage rate at the lowest cost? Get Kate’s refinancing advice online in real-time.
Related Refinance Articles
Filed under Refinancing by
Should You Consider Home Refinance, or Not?
Home refinance seems to be the craze these days with interest rates at all time lows. However, you need to do some home refinance research before you will know if it is for you or not. In general, if you bought a home when interest rates were significantly higher, have great credit, little debt, and always pay your bills on time then you should probably at least consider home refinance. Although, if you meet any of the following criteria then you definitely need to think twice before you decide on a home refinance.
Home Refinance Tip #1 Second Mortgages If you have a second mortgage and decide on a home refinance then you will likely find yourself paying more than with your original home loan. If you have taken out a second mortgage on your home to help pay other bills then getting a lender to consider a home refinance for you is going to be difficult.
Home Refinance Tip #2 High Debt to Income Ratio When you apply for a home refinance option then you will have to go through the same qualification procedures you did as when you were approved for your first loan. If you have a high debt to income ratio then it will be unlikely you will be approved for home refinance, and if you are approved for a home refinance it is highly unlikely the terms would be worthwhile.
Home Refinance Tip #3 Bad Credit Bad credit is generally the main villain when it comes to having a proposed home refinance application denied. So, if you have trouble paying your bills, are making late payments, and your credit score is declining, then you definitely need to get your credit in shape before you consider a home refinance.
Jay Moncliff is the founder of http://www.mileniumfinancial.com/ a blog focusing on the Financial resources and articles. This site provides detailed information on Finance. For more info visit his site: Financial
Find More Refinance Articles
Filed under Refinancing by