Mortgage Refinance Virginia

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Mortgage Refinancing: Consolidate Your First And Second Mortgages

Saturday, September 12th, 2009

When considering Virginia mortgage refinance, you are focusing on the Virginia refinance rates – what the interest rate, points and final monthly payment will be – after the Virginia mortgage refinance is complete. One good move to lower your payments can be to consolidate your first and second mortgages.

Refinancing Your First and Second Mortgages

Refinancing both your first and second mortgages will result in one low monthly payment that could save you thousands of dollars in interest charges. You qualify for lower rates by combining both mortgages, instead of refinancing separately. You can see substantial savings through your second mortgage refinance, which often has a several-percent-higher interest rate than your first mortgage rates. Not to mention considerable savings on application fees and other closing costs.

Lowering Your Mortgage Payments

You have a couple of options to lower your mortgage payment when refinancing. The first obvious task is to find a low rate mortgage. You will still see a savings in your monthly mortgage bills, even if you still select the same term of your loan.

The lowest payments come from adjustable rate and interest only loans at the beginning of your home loan. But a fixed rate loan can also give you quite reasonable rates with an assurance that those interest rates won’t rise in the future.

You can also extend your loan term in the case of a second mortgage which usually is for five to ten years. By consolidating your loans to a 30 year loan, you extended your payment schedule in order to have a smaller payment. However, it will be done with higher interest rate and charges for short term cases.

Getting the Best Loan

Once you determine the type of loan and terms you want, do your shopping for a good lender to save even more money. Lenders’ charges vary quite dramatically sometimes on how much they charge for closing costs and interest rates. The APR will show you how the loans compare overall, in terms of rates and closing costs.

If you are in Virginia, Delaware, Pennsylvania, Washington DC, Maryland, or Delaware, you want to shop around the mid-Atlantic area for mortgage brokers or lenders.

Many people, who need to refinance, are looking for a 15 year fixed or 30 year fixed rate mortgage.

But if you are planning to relocate or refinance again in the future, then be wary of paying high closing costs. Even if the mortgage broker or lender are able to secure you a lower rate, you can realize your savings only if you keep the mortgage for several years.

Don’t make your selection of which lender or mortgage broker to use, based on posted loan rates. Ask for a customized loan quote based on your general information. With more accurate numbers, you can make an informed choice as to who has the best financing for you.

With proper attention to interest rates, points, and closing costs, your Virginia mortgage refinance can go smoothly – consolidating your first and second mortgages.

Consolidate first and second mortgages

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Mortgage Refinance: Bad Credit

Saturday, September 5th, 2009

When you are researching Virginia refinance rates or Virginia mortgage loans, you probably are looking for  a fixed rate mortgage of a 15 year fixed or 30 year fixed type of mortgage. You also might be looking for mortgages for Delaware, Pennsylvania, Maryland, or Virginia properties. Bad credit may be an issue.

You also may be seeking loans with 0 to 1 points or with points 2 or more. You will be considering mortgage brokers and lenders for a Virginia refinance mortgage loan. You may want to go from a type 5-yr arm to a type 30-yr fixed Virginia mortgage loan.

Mortgage Refinance For Bad Credit
by Scott Paul

Banks and other lenders are hesitant to give refinance mortgages, yet, the scenario is not that bleak. No matter what the home mortgage loan you have a mortgage refinance deal properly conducted, with the proper research, will allow you to get a better interest rate than before. Banks are required to advertise APY, which allows direct comparisons between accounts using different compounding schedules. This calculator assumes monthly compounding. Lenders take into account the index rate along with the market rate in terms of adjustable mortgage. Other factor to consider is paying off.

Lenders have lots of imagination and flexibility when it comes to the fees that are charged to the borrower. Fees such as “loan origination,” “processing fees,” and “underwriting fees” can be negotiated down usually at least 50% or even waived by the lender if they want your business bad enough. Lenders assess every factor that would affect your mortgage rate and hence you would have to comply by their criteria.

Lenders generally limit the maximum VA loan to $203,000. Department of Veterans Affairs does not make loans, it guarantees loans made by lenders. Lenders often view Mortgages with larger down payments as more secure because you have more of your own money invested in the property.

About the Author

Scott writes articles about bad credit mortgage refinance loan and for mortgage refinance for bad credit

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Mortgage Refinance Virginia vs. Loan Modification

Friday, August 21st, 2009

Mortgage Refinance Viginia also brings to your attention the possibility of loan modification and, particularly, the government Making Home Affordable program.

Making Home Affordable is a plan to stabilize the United States housing market and help up to 7 to 9 million Americans reduce their monthly mortgage payments to more affordable levels.

The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures. [Mortgage Refinance Virginia readers may be able to benefit from this program.]

The government-sponsored consumer website, www.MakingHomeAffordable.gov provides homeowners with detailed information about these programs along with self-assessment tools and calculators to empower borrowers with the resources they need to determine whether they might be eligible for a modification or a refinance under the Administration’s program.

Through this government website, borrowers can also connect with free counseling resources to help with outstanding questions; locate homeowner events in their communities; find a handy checklist of key documents and materials to have ready when making that important call to their servicer as well as FAQs from borrowers in similar circumstances; and much more.

“Home Affordable Refinancing

” Many homeowners pay their mortgages on time but are not able to refinance to take advantage of today’s lower mortgage rates perhaps due to a decrease in the value of their home. A Home Affordable Refinance will help borrowers whose loans are held by Fannie Mae or Freddie Mac refinance into a more affordable mortgage.

“Home Affordable Modification

” Many homeowners are struggling to make their monthly mortgage “payments perhaps because their interest rate has increased or they have less income. A Home Affordable Modification will provide them with mortgage payments they can afford.”

Source — makinghomeaffordable.gov

” A loan modification is different from a traditional mortgage refinancing. When you refinance, you sign a new contract for a new loan. A loan modification involves changing the existing loan by lengthening its term or lowering the interest rate so that you can continue to afford your mortgage payment.

” Homeowners may be eligible for a loan modification if they have a mortgage payment greater than 31 percent of their monthly gross income and can document that a financial hardship has made the payment un-affordable.”  Source — www.Philly.com

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Mortgage Refinance Virginia — When Is It Worth It To Refinance?

Sunday, August 16th, 2009

When considering mortgage refinance in Virginia, you need to be sure that the new interest rate will be low enough (the interest rate difference between the new refinance mortgage and your existing mortgage will be great enough) to pay for the cost of refinancing.

When interest rates were two points below your current mortgage rate, it was considered a good rule of thumb to refinance. But with today’s low closing costs, even a difference of one percent can save you money on your interest costs. Even with low fees, it only worth it to refinance when you can be sure you can recoup the mortgage costs.

Figuring Up Costs

Refinancing is simply paying off one loan and taking a new one. The same fees that you paid with the first mortgage, you will probably have to pay for the refinance mortgage . Usually, loan costs range between $2000 and $6000 for a $200,000 loan. You will also have to add in points for lower interest rates (i.e., buying down the interest rate, adding additional thousands of dollars in costs. The only way to recoup these costs is to keep your mortgage for several years.

Interest Rates

To make refinancing worth it financially, you need to be sure that interest rates are low enough to pay for the cost of refinancing. One simple way to figure this out is to use a mortgage interest calculator from one of the lending sites. These calculators will give you an estimated monthly payment and the total cost of the interest. By punching in different interest rates, you can see your potential savings.

Mortgage Term

Besides interest rates, you also need to compare terms (i.e., the length of the mortgage). The shorter the loan the less you will pay in interest. Ideally when you refinance, you should choose a loan with a shorter term. You can also choose a biweekly mortgage, where you pay half a mortgage payment every other week, which can reduce your loan by years.

Finding Low Cost Lenders

Not all lenders charge the same fees or interest rates, so you can save thousands by searching for lenders. You can easily go to the big name mortgage lenders and request quotes, but some smaller financing companies offer better deals. The easiest way to find them is to look online for a local mortgage broker site. Essentially, you enter some basic information about yourself and income, and then you receive several different quotes. From this list of offers, you can decide who is offering the best mortgage refinance Virginia package.

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Mortgage Refinance Virginia: Tips — Debt to Income Ratios

Thursday, August 13th, 2009

Mortgage Refinance Virginia

Tips — Debt to Income Ratios

Your mortgage refinance Virginia success is enhanced by your understanding of how lenders use debt-to-income ratios in processing your mortgaStop Foreclosurege refinance application in Virginia.

A thorough knowledge of debt-to-income ratios can help you get the most value from your mortgage refinance, debt consolidation or purchase mortgage transaction in Virginia.

How Computed

Debt-to-Income Ratios, often referred to as “DTIs,” are a key calculation used in the mortgage refinance, debt consolidation, and purchase mortgage application process. A debt-to-income ratio is arrived at by dividing your monthly debt payments by your pre-tax income. Debt-to-income ratios are used to determine how much money you can borrow.

There are two different types of debt-to-income ratios which are used in mortgage refinance, debt consolidation or purchase mortgage underwriting in Virginia — a Front-End Ratio (or “Front Ratio”) and a Back-End Ratio (or “Back Ratio”).

Front Ratio

The Front Ratio is calculated by dividing your income into the sum of your total monthly housing expenses consisting of your mortgage payment (including principal, interest, taxes, homeowners insurance and mortgage insurance, if applicable) as well as homeowners association fees, mandatory maintenance fees, and common grounds charges in a development.

Back Ratio

The Back Ratio is similar to the front ratio but, on top of basic housing expenses, the back end ratio also includes your other monthly debt payments — particularly consumer debt payments — into the calculation. Examples of monthly consumer debts are your credit card bills, automobile payments, personal or student loans, etc. Examples of items not typically included in a back end ratio would be premiums for life insurance, health insurance, and car insurance.

Matching Your Ratio to Loan-Program Criteria

When evaluating your application, your lender is trying to match your application with the lending criteria for the mortgage refinance program in which you are interested to see if you qualify for the loan.

While there are many factors considered in determining how much money you can borrow and at what rate, your debt-to-income ratio is amongst the most important. A good-credit, conventional-mortgage program will very often have a debt-to-income ratio requirement of 33/38 – front/back, meaning that your monthly housing costs should be less than one third of your gross income per month.

Example

If you make $3,000.00 per month that means the maximum mortgage payment you could qualify for under a 33/38 program would be $1,000.00 per month inclusive of principal, interest, taxes, and insurance, as well as other housing costs. And, you will only be allowed a total monthly expenditure including mortgage payment, credit cards’ payments, and other consumer debt payments of$1,140.00.

That may seem very conservative, and it is.

Ratios’ Importance

If you’ve ever been turned down by a brick-and-mortar bank for a mortgage refinance, debt consolidation loan or for financing a new home purchase in Virginia, chances are it had something to do with your program’s low debt-to-income ratio.

Many modern lenders are not as concerned about the back end ratio at all and decide solely on the basis of the front ratio. In the case of a veteran’s VA loan, the guidelines only concern the back ratio and ignore the front. FHA loans allow you to carry more consumer debt, but with a higher income requirement — with a standard debt-to-income ratio guidance of 29/41 – front/back.

Refinance — Debt Payoffs

Debt consolidation programs can often make it much easier to qualify if you are willing to specify that certain consumer debt accounts be paid off directly, thereby reducing your monthly consumer debt payments.

Using a Refinance Loan Broker

Contact a nationally capable mortgage broker so that you have access to a wide variety of mortgage refinance programs in Virginia. Be honest with your loan officer about your earnings and debts and things will go smoothly. Remember, a mortgage refinance broker wants to get you the money you need in Virginia, and will work with you to make sure that happens.

Mortgage refinance Virginia

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