Rapid RefinanceRatesite Home Refinance!
This website is
dedicated to finding you the best available home mortgage offers and
bringing them all together in one place for your convenience. Whether
you are searching for the best rates for home loans, home equity, or
refinancing, you can be assured you will find them here. When
searching for the best lenders for home mortgage loans, you may want
to fill out a mortgage application form from more than one of the
companies listed below. The mortgage application forms are simple and
should only take a few minutes to complete. Some of these broker
companies will actually compete with one another to provide you with
the lowest mortgage interest rates. Apply to a number of lender to
find great home mortgage deals today!
The seller accepted your offer and the mortgage lender approved your
home loan application. So what type of residential mortgage do you
pick given the choices available in the market today? There are quite
a few considerations: What is your future earning potential, how long
do you plan to keep the house and where do you think mortgage interest
rates are going. Finally, how big should your mortgage loan be? The
basic rule is the annual upkeep of your property (mortgage payments,
utilities and insurance) should not exceed 30% of your gross annual
income. Read on to find which home loan is the best mortgage suited
for you.
Fixed Rate Mortgage
This is the most common type of residential home loan. The mortgage
loan is repaid through fixed monthly payments of principal and
interest over a set term. The borrowing rate stays the same over the
life of the residential mortgage loan. The term of the home mortgage
can be 10, 15, 20 or the popular 30 year fixed rate mortgage term. The
way fixed mortgage loans are structured, the mortgage interest is
front loaded. In the first years of the residential loan, the bulk of
the monthly payments go to paying mortgage interest. It’s only later
that you will start significantly building equity in your home as more
of your mortgage payments go towards paying down the mortgage loan
principal. A fixed rate mortgage is ideal for those who intend to stay
in their properties for a long time.
The Advantages
Stability: With your mortgage rates fixed, the loan
period set, you know what your mortgage payment will exactly be for
the whole life of the residential loan. Given the certainty of your
mortgage loan payment, you can plan your finances accordingly.
Lower payments in a low mortgage interest rates environment: A lower
monthly mortgage payment frees up your purchasing power and gives you
greater financial flexibility. Using a 30 year fixed mortgage of
$150,000 as an example, if the borrowing rate is 6.50%, the monthly
payment would be $948.10. If the mortgage interest rate is 8.50%, the
mortgage monthly payment would amount to $1,153.37. The difference in
monthly payments is $205.27.
The Disadvantages Affordability: If mortgage interest rates are high,
you might have difficulty making the high mortgage payments. The home
loan in this situation might not be approved.
High payments in a high mortgage rate environment: Nobody wants to be
saddled with high home mortgage payments over the long term. When
borrowing rates are lower, you can refinance your mortgage. A
refinance mortgage is the process of replacing your current mortgage
with a new residential mortgage with better borrowing terms.
The Adjustable Rate Mortgage
(ARM)
The adjustable rate mortgage is usually referred to as an ARM. An arm
adjustable rate mortgage is a combination of a fixed rate mortgage and
a floating rate mortgage. At the beginning of the mortgage term, the
mortgage rate is fixed for certain periods. These periods could be for
3, 5, 7 or 10 years. After this period expires, the mortgage interest
rate becomes adjustable.
A popular ARM home loan is the 5 1 ARM Mortgage. Five
denotes that the period and the borrowing rate are initially fixed for
5 years. After the fifth year, the mortgage rate becomes adjustable.
Conversion Options: Some ARM home loans come with
options to convert them to a fixed rate mortgage based on a
pre-determined formula, during a given time period. Example: the
1-year treasury bill adjustable may be converted to a fixed mortgage
rate during the first five years on the adjustment date. Meaning, you
have the option to convert during the 13th, 25th, 37th, 49th and 61st
months of the mortgage loan.
The Advantages Teaser Rate: This is the starting interest rate of
the arm adjustable rate mortgage. It is usually referred to as the
teaser rate, since it is lower than the fully indexed rate. The
initial low mortgage rate is used to attract people. An arm mortgage
is ideal for people who intend to stay in their homes for no more than
5 to 7 years. The benefits of an arm are realized at the beginning.
Affordability: If current mortgage rates and housing
prices are high, this may be the only home loan option available to
you. You may have a better chance of getting the home loan since the
lender incorporates the gross monthly income and the monthly loan
payment amount to determine how much you qualify. The monthly amount
will be less with a lower interest rate so you might qualify for more. Interest rates have peaked: By going with an
adjustable rate mortgage arm at the peak of the interest rate cycle,
the successive rates will be lower as interest rates go down. Your
monthly home mortgage payments will be lower.
The Disadvantages Complicated to understand: Unlike a fixed rate
mortgage that is simple to understand, there are many variables that
go into calculating adjustable rate mortgage loans. Interest rates have bottomed out: By going with an
adjustable rate mortgage arm at the bottom of the interest rate cycle,
successive borrowing rates will likely go higher as interest rates go
down. Your monthly mortgage payments will become less affordable. Uncertainty: If you plan to be at your property for
more than 7 years, you will be dealing with the uncertainty associated
with an ARM mortgage. After each adjustment period, you will bet
getting new mortgage payments.
Interest Only Mortgage
An interest only home mortgage features no payments
of principal made at the beginning of the home loan. The monthly
payments consist only of mortgage interest only. Due to the lower
monthly mortgage payments, you qualify for a bigger residential loan.
An interest only home mortgage allows you to buy more home while
keeping your monthly mortgage payments low. Not Interest Only For The Whole Mortgage Loan Term
The interest only payments do not go on for the whole term of the home
loan mortgage. Interest only mortgage payments periods range from 1
year up to half the term of the mortgage loan. Interest only loan
mortgages are available in adjustable rate mortgage format and fixed
mortgage format. Bigger Monthly Mortgage Payments
After the interest only payment is over, you will begin making
payments on your mortgage principal. Your monthly mortgage payment
will go up considerably. For example, you took out a 15/30 year
interest only mortgage. After the 15th year, the principal balance
will be amortized over 15 years. With a $175,000 home loan with a
mortgage borrowing rate of 6.50%, the interest only monthly payment is
$947.92. When the principal payments kick in after the 15th year, the
mortgage monthly payment jumps to $1,524.44.
The Advantages Lower mortgage payments: The lower monthly mortgage
payments let you purchase a home where a fixed mortgage loan would
not. Free up cash to invest the money elsewhere: Instead
of using the cash to pay down your mortgage principal, you can invest
in other vehicles such as stocks and mutual funds to generate a
superior return.
The Disadvantages Income Risks: There are no assurances that your
income will rise fast enough to cover the higher monthly mortgage
payments. Property Risks: Instead of the property rising fast
enough to pay off your interest only home mortgage, it could stay at
current levels or even drop. As a result, you might require another
loan just settle the interest only mortgage loans. No guarantee of getting superior returns in other investments:
If you used the money to generate returns in investments such as
equities and mutual funds, there is no guarantee you’ll make money.
Biweekly Mortgage
Mortgage payments are made every two weeks. The amount paid is half of
what your monthly mortgage payment would be. On an annualized basis,
there are two extra payments in a year. You will be making 26 biweekly
mortgage payments instead of 24 payments. Save Thousands On Mortgage Interest And Pay Off Your Mortgage
Quicker
A bi weekly mortgage program has you paying down your principal
mortgage earlier. As a result, you’ll save significant amounts in
mortgage interest and pay off your home mortgage years earlier.
Example: 30 year fixed mortgage $175,000 Interest Rate: 6.75%
By opting for a bi weekly mortgage payment plan for this mortgage, you
will be saving $54,257.52 in mortgage interest. Your mortgage will be
paid off 5 years 9 months earlier.
Two Step Mortgage
A two step mortgage is essentially a 30 year mortgage with special
features: Convertible or non-convertible. These mortgage loans are
also known as 5/25s and 7/23s. The 5/25s has a fixed interest rate for
the first five years and then switches to either a 25 year fixed
mortgage rate or a 1 year adjustable mortgage rate. The 7/23 has a
fixed interest rate for the first seven years and then converts to a
23 year fixed or a 1 year adjustable. The starting home loan rate is
lower than a 30-year fixed. However, it is higher than a 1-year ARM
mortgage. This type of residential mortgage is less risky than a
mortgage ARM initially since the adjustment interval is longer.
Federal Housing Authority
(FHA) Mortgage
A FHA mortgage is a residential loan insured by the FHA that is part
of the U.S. Department of Housing and Urban Development (HUD). FHA
loans have lower mortgage down payment requirements and were easier to
qualify for than conventional loans. The goal of the FHA is to make
housing affordable and stimulate demand.
The best feature of an FHA loan is the low down payment. FHA loans are
also assumable so you can take over from the property seller if you
qualify. This could save you significant amounts of money and hassles.
The FHA mortgage loan amounts are determined by the median prices of
different cities within a specific region.
Veterans Affairs Loan
The U.S. Department of Veterans Affairs guarantees mortgage loans for
veterans and service persons. It does not underwrite the residential
loans. The guaranty allows veterans to get home mortgage loans with
good borrowing terms, usually with little or no down payment.
To be eligible for the VA loan, you must have served 180 active days
service since September 1940. If you enlisted after September 7, 1980
you need to have two years of service. You do need to get a
certificate of eligibility from the Department of Veterans affairs as
proof of service.
Veterans are not permitted to pay points to the mortgage lender on
these types of mortgage loans. You can prepay a VA loan without
penalty and the residential loan is assumable, meaning the property
buyer can take over the mortgage if the property is sold. This feature
can save a buyer significant amounts of money in mortgage interest
payments. The buyer still needs to meet the requirements of the
current mortgage banker. The homebuyer takes over payment on the
existing mortgage and pays the difference between the mortgage balance
and the selling price. You should always verify first whether the
mortgage home loan you are securing is assumable. Refinance
If you are considering
refinancingyour home, there are several factors you should
think about before making your decision. These factors include the
interest rate on your current mortgage, the current market interest
rate, how long you plan to live in your current home, and whether or
not you need money for other things (such as home improvement, a new
car loan, or paying off credit cards).
If you have several outstanding bills,
you may want to consider refinancing your home and in turn,
consolidating and paying off your other debts. If you have equity in
your home, you may be able to access that equity through a "cash out"
refinance. You could choose to apply that equity to a debt
consolidation plan, a new car, or home improvements
If you are considering refinancing, also
remember that there are a variety of different mortgages. If you plan
on living in your home for a long period of time, you may want to
consider the traditional fixed-rate 15- or 30-year loan. Another
option is to choose an adjustable rate mortgage and consider
refinancing again in a few years. By refinancing, you can choose the
perfect mortgage for your needs, which may have changed since you
first bought your home.
Consider the interest rate you are now
paying before refinancing. Compare it against the current interest
rate to see how much you would save by mortgage refinancing.
Mortgage lenders usually advise that when interest rates drop by two
percent, refinancing becomes advantageous. This two percent figure is
only a rough guideline, every situation will be slightly different.
There are expenses involved with a refinance, although by taking
advantage of the lower interest rates, your payments become lower and
overall payback amount is less; so each refinance situation will have
a slightly different break-even point after which it would produce a
benefit.
Typically, most of the expenses and standard closing costs you face
with a first mortgage will also be present with a refinance. No-cost
refinance loans are available, although they typically carry a higher
interest rate than a refinance would otherwise carry.
There are several reasons to refinance, although taking advantage of
lower interest rates is a big one. Another reason to refinance a
mortgage is to convert from an adjustable rate mortgage to a fixed
rate mortgage, or to convert to a shorter term loan to save on overall
interest charges. Some people may also wish to refinance a mortgage to
obtain cash from existing equity.
When deciding whether or not to refinance, there are two things to
calculate. Your monthly savings is an important figure, this is simply
the difference between the old mortgage and the new one. The other
figure is the overall total cost of refinancing. Consider the
break-even point as well: this is the total cost of refinancing,
divided by the monthly savings. For example, if it will cost you
$2,000 to refinance a mortgage, and your monthly savings are $100,
your break-even point is 20 months. Assuming you presently have $2,000
to spare, and you will live in the home for more than 20 months, then
the decision to refinance may indeed be a prudent one.
I got a Good Faith Estimate from my refinance mortgage lending company and there are Title search, title?
Oct 28, 2009 by krisdds426 | Posted in Renting & Real Estate
insurance, title examination fees and Miscellaneou title. These expenses have been paid since I bought the house 2 years ago so I have to pay again just to refinance now? Please advise, thank you. And what is the best rate now for the 15 year fixed?
Subscription should require an update on the status of title to ensure that no privilege or outsales / clouds have appeared on the title.
Each new loan title insurance.
wizjp | Oct 28, 2009
Subscription should require an update on the status of title to ensure that no privilege or outsales / clouds have appeared on the title.
Each new loan title insurance.
wizjp | Oct 28, 2009
yes pay again. This is an entirely new loan and even documentation is required.
refinancing is costly. you need a discount rate of Nice to make it interesting.
David Z | Oct 28, 2009
what is the best rate someone can have for a refinance mortgage?
Oct 16, 2007 by Fast Pace | Posted in Renting & Real Estate
having 668 on credit score and being first time home buying. Today, what docs do we need to present to refinace? Thanks, I appeciate your help.
Hi Claudia; if you are siously considering this, and would like to speak to a live mortagge propfessional, you can email me at dantaft@bellsouth.net- you may be able to get a rate in the high 5s to low 6s, but I would really need more information to give
Mr. Mortgage | Oct 17, 2007
first time home buying??? refinance? that doesnt make sense.
rate depends on the loan to value....and if you're looking for a 30yr fixed....what's the loan amount..
you need to present paystubs, w-2's, asset statements, etc
Carolinahomerates.com | Oct 16, 2007
Well it depends....right now rates are up around 7%, you may be able to get something better at a bank....docs usually needed are paystubs, W2's, Homeowners insurance declaration page, your first mortgage note or statement....and typically you go from
Godsown | Oct 16, 2007
Possible to refinance mortgage with no job but high equity and extra cash for partial payoff?
Dec 29, 2010 by Vindaloo99 | Posted in Personal Finance
I have 50% equity in my house, cash to reduce the loan amount even further, but no job at the moment. Do I have any chance of refinancing at "preferred" rates?
Unfortunately no. It is of primary importance to any lender that the borrower have a method if paying back the funds. they really do not want to have to take possession of the property.
Jay P | Dec 29, 2010
Refinance Mortgage Rates
www.refiadvisor.com Refinance Mortgage Rates - How to get the lowest possible rate when refinancing your home without paying junk fees.
Obama Answers Bernanke Plea With Refinancing Plan: Mortgages
23.02.12
Jan. 25 (Bloomberg) -- President Barack Obama answered Ben S. Bernanke’s appeal for more action to fix the U.S. housing market that’s restraining the economic recovery by proposing a plan to help borrowers reduce their monthly mortgage payments.
Obama is sending Congress legislation that would allow homeowners to tap record-low borrowing costs, potentially boosting housing as he seeks re-election this year. The proposal could save participants about $3,000 a year, Obama said in his State of the Union speech to Congress.
Even with unemployment at the lowest level since February 2009 and housing sales increasing, homeowners have been blocked from refinancing by house prices that are 32 percent below their 2006 peak and tightened bank lending. While parts of the plan may face opposition in a divided Congress, and it’s important to see details, the approach is “a big step forward,” said Christopher Mayer, a Columbia Business School professor.
“It’s going to help homeowners who are struggling and it’s likely to be a first step to really opening up the market to more normal credit standards,” said Mayer, who along with fellow Columbia professor Glenn Hubbard first proposed a mass refinancing program in 2008.
Refinancing your mortgage in uncertain financial times
23.02.12
Last September, the Federal Reserve announced its intention to
keep interest rates at near historic lows at least until mid-2013.
That's good news for homeowners with decent credit and equity in
their homes, who could save hundreds of dollars every month by
refinancing. Because refinancing can save borrowers thousands over
the term of their mortgages, you may think locking in a low rate
now is a no-brainer, but it's not that simple.
Breaking even
The first thing to determine when considering a refinance is
your break-even. In other words, how long before the monthly
savings pay for the up-front costs? Applying a lower interest rate
to your outstanding loan balance will decrease your monthly
payments, but you incur fees to get it. If a lender charges $2,400
to refinance you into a loan with payments $100 lower than your
current mortgage, it's going to take two years to break even. Most
lenders allow borrowers with average credit to roll fees into the
balance of the new loan. But even if you are not out-of-pocket for
the cash, you have added those fees to the balance you owe.
Long-term debt
Unless you get a shorter-term loan, you extend the term of your
loan every time you refinance. If you made payments on a 30-year
mortgage for five years before refinancing into another 30-year
note, it's like you got a 35-year mortgage in the first place. To
pay down the balance faster, consider a shorter term. Compare the
rates and payments for 15- and 20-year terms. Depending on your
outstanding balance and the interest rate, the differences in
monthly payments may not be that much. And don't get stuck on
traditional mortgage terms. Many of today's lenders can customize
the length of your loan based on your individual needs. Got 23
years left on the current note? Forget the 30-year mortgage and
refinance to a 23-year loan instead.
PER SQNAL FINANCE Refinancing Your Mortgage ... This good news is driving many home owners to refinance their current mortgage, since as little as a 2% drop in the mortgage rate means they can reduce their overall mortgage interest ...
Creator: David Reed | Business & Economics - 2008-05-02
CHAPTER10 Refinancing and Home Equity Loans Arefinance is just that, ''redoing'' the original mortgage. There are different reasons to refinance, including to get a different rate or different term, or to replace a current loan with a ...
Creator: Eric Tyson, Ray Brown | Business & Economics - 2008-10-06
Chapter 11 Refinancing Your Mortgage In This Chapter Refinancing to cut monthly loan costs Restructuring your mortgage Understanding cash-out refinances Expediting your refinance Dealing with borrower's remorse M any people imagine a ...
Creator: Debby Fowles | Business & Economics - 2008-04-01
Refinancing Your Mortgage When you refinance your mortgage, you take out a new loan at a lower rate or for a different term and use the proceeds to pay off the original mortgage. Most lenders require you to have at least 10 to 20 ...
By SONYA STINSON - bankrate.com Having a home equity loan or home equity line of credit when you're trying to refinance your mortgage adds a layer of complication to the approval process. That's because the second mortgage holder, which is legally
Getting banks to agree to refinance your home isn't as easy as it used to be. (more) A bell rings at Magnolia Mortgage everytime a loan closes. "Hopefully we hear it a couple of times a day," laughs Tim Wilkes with Magnolia Mortgage.
President Barack Obama has highlighted the importance of helping millions of homeowners refinance their mortgages to support the recovery. This argument was also made in Federal Reserve Chairman Ben Bernanke's recent white paper and repeated by many
The average rate on the 30-year fixed mortgage held steady at a record low for a third straight week, offering more incentive to those looking to buy a home or refinance. By DEREK KRAVITZ AP Real Estate Writer No comments have been posted to this
Is it time to refinance your home? “I think a lot of people are out there with much higher rates than there are right now,” said Jeff Paul, President of American Midwest Mortgage in Parma Heights. Paul has been helping clients refinance their homes for
By SONYA STINSON - bankrate.com Having a home equity loan or home equity line of credit when you're trying to refinance your mortgage adds a layer of complication to the approval process. That's because the second mortgage holder, which is legally
President Barack Obama has highlighted the importance of helping millions of homeowners refinance their mortgages to support the recovery. This argument was also made in Federal Reserve Chairman Ben Bernanke's recent white paper and repeated by many
The average rate on the 30-year fixed mortgage held steady at a record low for a third straight week, offering more incentive to those looking to buy a home or refinance. By DEREK KRAVITZ AP Real Estate Writer No comments have been posted to this
Is it time to refinance your home? “I think a lot of people are out there with much higher rates than there are right now,” said Jeff Paul, President of American Midwest Mortgage in Parma Heights. Paul has been helping clients refinance their homes for
:: Can I refinance my mortgage and home equity line of credit together? 
Mortgage Refinance – When and Why?: People who have considered refinancing as an option either to get lower paym... 
Reverse Home mortgage Solutions and products Easily Senior Homeowners,Mortgage refinance: Reverse mortgages are ... 
Reverse Home mortgage Solutions and products Easily Senior Homeowners,Mortgage refinance: Reverse mortgages are ... 
Bad Credit Mortgage Refinance Loan – Things That You Should Know and Do