Comments on: 3 Things to Ask Yourself When You Refinance http://www.peakpersonalfinance.com/3-things-to-ask-yourself-when-you-refinance/ Mon, 06 Sep 2010 15:15:48 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: jon@refinance mortgage programs http://www.peakpersonalfinance.com/3-things-to-ask-yourself-when-you-refinance/comment-page-1/#comment-1316 jon@refinance mortgage programs Wed, 05 May 2010 03:55:52 +0000 http://www.peakpersonalfinance.com/?p=642#comment-1316 Refinancing is when you apply for a secured loan in order to pay off another different loan secured against the same assets, property etc. If this original loan had a fixed interest rate mortgage which has now declined considerably, then you would like to avail of a new loan at a more favorable interest rate. .-= jon@refinance mortgage programs´s last blog ..<a href="http://refinancemortgagesinfo.com/cash-out-refinance/the-many-benefits-of-cash-out-refinance" rel="nofollow">The Many Benefits of Cash Out Refinance</a> =-. Refinancing is when you apply for a secured loan in order to pay off another different loan secured against the same assets, property etc. If this original loan had a fixed interest rate mortgage which has now declined considerably, then you would like to avail of a new loan at a more favorable interest rate.
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]]> By: Carnival of Money Stories 2 Bob Gibson 1968 Season Edition http://www.peakpersonalfinance.com/3-things-to-ask-yourself-when-you-refinance/comment-page-1/#comment-1113 Carnival of Money Stories 2 Bob Gibson 1968 Season Edition Mon, 22 Feb 2010 08:03:40 +0000 http://www.peakpersonalfinance.com/?p=642#comment-1113 [...] Personal Finance presents 3 Things to Ask Yourself When You Refinance posted at Peak Personal Finance, saying “Remember these tips if you are thinking of [...] [...] Personal Finance presents 3 Things to Ask Yourself When You Refinance posted at Peak Personal Finance, saying “Remember these tips if you are thinking of [...]

]]> By: B Simple http://www.peakpersonalfinance.com/3-things-to-ask-yourself-when-you-refinance/comment-page-1/#comment-990 B Simple Mon, 18 Jan 2010 19:08:29 +0000 http://www.peakpersonalfinance.com/?p=642#comment-990 Many times we only look at the lower interest rate and don't consider the other factors. Here are some additional questions to ask yourself before you move forward with refinancing. What type of mortgage do you have? Is your existing mortgage a 30 year fixed, 15 year fixed, or 7 year, 10 year, or 5 year adjustable rate mortgage? Understanding your current terms will help with your decision. What is the estimated value of your home? You want to know if your home has increased in value or decreased in value. The reason you want to know this is because a decrease in value can have a impact on the refinancing of your mortgage particularly if you owe more than your home is currently worth. What is your lenders underwriting criteria? Due to the current economic conditions many lenders have tightened their underwriting standards. Be sure you understand their criteria. For example,what type of credit score is required?, What are their loan to value standards? and What financial documentation will be required? How long do you plan to stay in your existing home? This helps to understand what terms are best for your situation. For example, if you know you will be moving or purchasing a new home within 5 years do you want a 30 year fixed mortgage. Maybe or maybe not. If you plan to stay in your current home for the next 10 years do you really want the 5 year adjustable rate mortgage just because the rate is lower rate. Many times we only look at the lower interest rate and don’t consider the other factors. Here are some additional questions to ask yourself before you move forward with refinancing.

What type of mortgage do you have? Is your existing mortgage a 30 year fixed, 15 year fixed, or 7 year, 10 year, or 5 year adjustable rate mortgage? Understanding your current terms will help with your decision.

What is the estimated value of your home? You want to know if your home has increased in value or decreased in value. The reason you want to know this is because a decrease in value can have a impact on the refinancing of your mortgage particularly if you owe more than your home is currently worth.

What is your lenders underwriting criteria? Due to the current economic conditions many lenders have tightened their underwriting standards. Be sure you understand their criteria. For example,what type of credit score is required?, What are their loan to value standards? and What financial documentation will be required?

How long do you plan to stay in your existing home? This helps to understand what terms are best for your situation. For example, if you know you will be moving or purchasing a new home within 5 years do you want a 30 year fixed mortgage. Maybe or maybe not. If you plan to stay in your current home for the next 10 years do you really want the 5 year adjustable rate mortgage just because the rate is lower rate.

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