Mortgage refinancing can be a great thing for a lot of homeowners to do. However, there are some common mistakes which homeowners make that can cost them time, and money. Here are some tips which will help you get approved the first time, and get the best mortgage refinance deal possible:
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3 Mortgage Refinance Tips to Help You Save Money
August 2009 Case-Schiller Home Price Change
Data through June 2009, released August 25, 2009 by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index improved in the second quarter of 2009.
The chart to the right depicts the annual returns of the U.S. National, the 10-City Composite and the 20-City Composite Home Price Indices. The S&P/Case-Shiller U.S. National Home Price Index – which covers all nine U.S. census divisions – recorded a 14.9% decline in the 2nd quarter of 2009 versus the 2nd quarter of 2008. While still a substantial negative annual rate of return [n.b., the home price slide continues], this is an improvement over the record decline of 19.1% reported in the 1st quarter of the year. The 10-City and 20-City Composites recorded annual declines of 15.1% and 15.4%, respectively. These are also improvements from their recent respective record losses of -19.4% and -19.1%.
In spite of the recent positive data, the overall numbers remain weak, with all metro areas and the two composites posting negative annual returns, and 15 out of the 20 metro areas reporting double digit annual declines. While not alone, Las Vegas and Detroit continue to be two markets that are struggling severely. These are the only two markets that fell in June and saw deterioration in their annual rates of return. Since their relative peaks they have fallen 54.3% and 45.3%, respectively.
When considering a mortgage refinance in Fairfax, Virginia, choosing a mortgage broker or lender is a key part of the home mortgage refinance process.
Understanding the different refinancing options and knowing how each of these options work are very important. However, none of these details matter at all if the homeowner (or mortgage broker) is unable to find a lender who is willing to offer the rates and terms the homeowner is seeking for a refinance in Fairfax, Virginia.
Choosing a lender or mortgage broker can be a long and difficult process, but there are some ways to make it easier. One simple way to make it easier is to ask for advice from friends or family members who recently refinanced.
Additionally, homeowners can do their own research to determine which lenders are able to offer them the best rate. Finally, the homeowner should determine whether or not the financial considerations should be the governing factor in choosing a lender. Surprisingly enough, in most cases they are not.
Ask for Advice from Friends and Family Members
Friends and family members who recently have refinanced can be a homeowner’s most valuable resource in the process of selecting a lender. These friends and family members are so valuable because they will most likely be willing to offer you a quite candid opinion of the lender or mortgage broker they used. This opinion may be either positive or negative but, in either case, it is useful to the homeowner. If the opinion is negative, the homeowner can remove this lender or broker from their list of lenders to consider. Conversely, if the lender or broker comes highly recommended, the homeowner might consider this refinancing source more carefully.
Comparison Shop
Homeowners who want to know which lender is offering them the best interest rate and financial terms should do a great deal of comparison shopping. A mortgage broker can assist in this search. The homeowner might even consider requesting quotes from each and every lender. This should make it perfectly clear which lenders are willing to offer the homeowner more favorable rates.
When comparing quotes, each of the factors should be considered to ensure the quotes are being compared fairly. For example, each quote should be broken down to determine the monthly savings, total savings, etc. All of such statistical data will make it much easier for the homeowner to make a wise decision when the time comes.
Consider More than Finances
Finally, while interest rates, loan terms and other financial matters certainly are all important, none of these are more important than being treated fairly by the lender. For this reason, the homeowner should consider carefully each of their lenders and should determine whether or not they feel as though the lender or mortgage broker is responsive to their needs. For example, a lender or broker who does not return calls in a timely fashion or does not answer questions truthfully and accurately may not be the ideal lender or broker for a homeowner, even if the lender is the one which is offering the most favorable rates.
Additionally, homeowners should trust their instincts regarding their trust in the lender or broker. Some lenders or brokers simply do not seem to know what they are talking about. Homeowners might be inclined to avoid these individuals because they may end up doing more harm than good during the refinancing process. Conversely, some homeowners may be immediately impressed by the honesty and intelligence of another lender or broker. In most cases, the homeowner would likely choose the second source as long as the rates offered by each lender were comparable.
As you are considering a mortgage refinance in Fairfax, Virginia, choose the lender or mortgage broker carefully.
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
Mortgage brokers in Virginia
Mortgage brokers in Virginia are professionals whose primary expertise is locating funding for mortgage financing. Mortgage brokers function as intermediaries or as a link between the borrower (or the client) and the mortgage lender. Mortgage brokers are consumer advocates in the mortgage selection process, helping home buyers to pre-qualify, select a mortgage loan, and complete escrow.
Mortgage brokers are experts in their fields and are aware of the various mortgage options and market trends that are prevalent. Mortgage Brokers are generally paid by the Lending Institutions once a mortgage has been placed. Mortgage brokers in Virginia are licensed and regulated by the Bureau of Financial Institutions. Mortgage Brokers are now the number one choice for people seeking a home loan or refinancing their existing mortgage loan.
Loans
Virginia mortgage options include: refinancing loans, fixed interest rates, variable interest rates, adjustable interest rates, loans without private mortgage insurance (PMI), construction loans, cash out money at closing, or any other possible Maryland or Pennsylvania mortgage need.
As the middleman between borrowers and lenders, mortgage brokers are independent contractors who research available loans from a variety of lenders – as many as 40 wholesale lenders at a time — seeking out a mortgage that best suits the needs of a particular client. The majority of mortgage brokers are regulated to ensure compliance with banking and or finance laws in the jurisdiction of the consumer; however, the extent of the regulation depends on the jurisdiction.
Whether you are looking for a traditional home loan, refinance, debt consolidation loan, purchase an investment property, new construction loans, second mortgages or take out a home equity loan, mortgage brokers in Virginia can help serve you.
mortgage brokers in Virginia
Avoiding Foreclosure
Avoiding foreclosure is a big concern of many homeowners. Loan modification is one of the best options to avoid home loan foreclosure. Here are some comments from a visiting author.
How Foreclosure Consultants Help You Avoid Home Foreclosures
by Gardner Wilkinson
Foreclosure consultants can help with foreclosures by helping homeowners by providing them with options when they are in the danger of losing their home because they cannot pay their mortgage payments. One of the most successful options is a loan modification. Anyone who is concerned about foreclosure of their home can seek help with foreclosure consultants.Having a home go into foreclosure is one of the most devastating things that can happen to a homeowner. Not only does it take an enormous toll on the credit, but it also causes people to lose something that is usually most dear to them – their home. Today, many homes are in foreclosure and millions of homeowners are struggling to pay their mortgages. Foreclosure help is available with the help of experienced foreclosure consultants.
The best time to get a foreclosure consultation is when you first begin to worry about paying your mortgage. If the mortgage payment is something that you are struggling with every month, the time to seek help with foreclosures is right now. The sooner you take action with regard to your problem, the better.
Foreclosure consultants can help anyone who is struggling with foreclosure. While it is best to try to deal with the problem before you actually get involved in the foreclosure process, you can still get help even if your home is in the midst of foreclosure. A foreclosure consultation is free. The consultant will take a look at your particular situation and come up with some options that are available for you. These options are based upon the foreclosure laws in your state, where you are in the foreclosure process and what type of outcome you are seeking. Most people, when seeking to prevent foreclosure, want to stay in their homes and be able to afford the payments.
Loan modification options can be the answer for anyone who is struggling to pay their mortgage and wants to keep their home. Foreclosure consulting is the first step towards avoiding foreclosure and keeping your home. The worst thing that you can do, if you are having problems paying your mortgage, is to do nothing. A foreclosure consultant can help you save your home by offering you a number of options, including a loan modification.
About the Author
Foreclosure Consultants – 1st Foreclosure Prevention negotiates with your lender to lower your mortgage payments, avoid foreclosure and negative credit impact.
Fixed rate mortgages
Fixed-rate loans are beneficial for a number of reasons, though the fact that your mortgage payment will never change is clearly paramount. Fixed rate mortgages do not change and they are not tied to an index, unlike adjustable rate mortgages. Fixed-rate mortgages allow for repayment of a debt in equal monthly mortgage payments over a specified period of time, from 10 to 50 years. Fixed rate mortgage loans are also available that take 30 years, 20 years, 15 years, or 10 years to pay off. Fixed rate mortgage loans that take a shorter period of time to pay off have a higher monthly payment than fixed rate mortgage loans that take a longer period to pay off.
fixed rate mortgages
