Archive for the ‘refinancing’ Category
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Why is a Payout Figure Always Higher Than The Balance
The interest on your home mortgage is paid in arrears. This means that you pay
interest for each month with the next mortgage payment (meaning you pay the interest
for January with the payment on February 1). Therefore, whenever you pay off your
loan, you will owe a certain amount of interest to your old bank from the last
payment up until the closing.
This amount will vary depending on the interest rate of the loan you are paying off
and the day you close your new loan or sell your house. A good guess is to add about
75% of your monthly payment on the old loan to the current principal balance of that
loan. This should give you a good cushion and be close to the final figure for your
payoff amount.
The other side of interest in arrears is that when you close on a new loan, you
\”skip\” a payment, meaning that the first of the month passes one time without you
paying a mortgage payment. The truth is that between the higher payoff and interest
per diem or \”prepaid interest\” on your new loan, you have already paid those 30 days
of interest.
I am always available should you have any refinancing questions on documentation or
any other aspect of mortgages. Please feel free to leave a comment.
When and Why to Refinance Your Home Loan
You are pretty much guaranteed to refinance your home loan at some stage throughout
the loan term. It can happens to everyone, the roof is leaking, the credit card
bills are pilling up and it is almost time for a new car. But where are you going to
get the money to do all of these things? The need for extra cash can be very
frustrating and worrisome, however if you are a home owner you have a variety of
financial options available to you that you may not even be aware of. You should look
into refinancing as a viable option to solve your financial worries.
Why Should I Refinance?
There are a few reasons for refinancing your mortgage:
* To lower monthly payments
* To shorten the length of the mortgage
* To take advantage of low interest rates
* To finance a home project or renovation
* To consolidate bills
* Reduce Risk
Refinancing your mortgage can give you a lot of options as far as the freedom of a
little bit extra cash. There are a few different ways that you can go about
refinancing and the best way for you depends on what you are hoping to accomplish and
what your own personal situation is.
When should I refinance ?
The best time to refinance your mortgage is when you have outstanding personal debts
on higher interest rates, such as credit cards and car loans. This way you are able
to get your personal debt off these high interest rates of 16% and down onto rates of
around 7%. This results in a massive saving in interest as well as freeing up some
much needed cash flow for you and the family !
Refinancing is a great time to re-assess your loan structure, as it gives you the
opportunity to get your broker to shop around for Australia\’s best home loan. An
article on a refinancing blog
http://mortgagerefinance.blogharbor.com/blog/_archives/2005/3/29/488091.html
details a few of the reasons and benefits of looking at your refinancing options over
the net.
\”Online, you can view a lot of information very quickly. After looking at a few
mortgage loan websites, you will know quickly that when you refinance you have many
options. Do you want to get cash out of your home? Do you want to borrow more than
your homes current value? Do you want an interest only loan? And, you will know right
away which mortgage companies offer these options. There are many different kinds of
refinance loans, and all of these options can be learned after a few minutes of
searching online.\”
There are a few loan structures out there on the market, which will give you
exceptional flexibility and freedom. This means that you will never have to worry
about refinancing your loan down the track, which will potentially save you on
incurring more application fees, valuation fees, solicitor fees and stamp duty !
One of the latest stats in the mortgage industry is that the average Australian
refinances their home loan every 3.9 years. Now as we all know, banks are
exceptionally clever businesses. They are able to generate profits of up to $1
million p/hour per day.
During the first 5 years of your mortgage, the majority of your repayments will go in
interest (bank profit). When you refinance your home loan to purchase a car or go on
that holiday, the banks are quite cheeky as they reset your home loan clock back to
the start of another 25 or 30 year mortgage. Hence you start all over again, having
to pay back an obscenely large amount of bank profit (interest) for the first 5
years, and the vicious cycle begins again…..
Refinancing Your Home Loan – Why?
Refinancing your home loan is a very smart option to take if you are looking to
consolidate your credit card debt, personal loan debt pr wanting to use some of your
equity to do a renovation.
The average Australian refinances their home loan every 3.9 years, most of the time
it is for one of the benefits mentioned below:
Getting a lower interest rate
Paying off your mortgage faster
Lowering your monthly debt repayments
Accessing equity for renovations, holidays or cars
Our home loan consultants can give you quotes on refinancing, as well as let you know
what the best home loan structures are to refinance onto.
You will end up saving thousands of dollars in interest payments, which means youll
be out of debt quicker and have your investment property portfolio started a lot
sooner!
To arrange for an obligation FREE quote from one of our refinancing specialists
contact us NOW!
Refinance Mortgage Rates
http://www.refiadvisor.com refinance Mortgage Rates – How to get the lowest possible rate when refinancing your home without paying junk fees.
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Is Refinancing That Popular?
Refinancing has become very popular over the past few years as the average Australian
continually obtains more and more personal debt to the point where the strain on
cashflow is almost too much to handle!
Our qualified home loan consultants can show you the best loan to refinance onto and
when to refinance. Some questions you need to ask yourself before you refinance are:
When should I refinance?
When you want to get rid of credit card debt or consolidate a number of your little
loans onto a debt with a lower interest rate. Getting a lower rate will reduce your
monthly payments and save you lots of money over the life of your loan.
Are there other reasons to refinance?
* To switch from a variable interest rate over to a fixed-rate home loan. That locks
in a rate you can live with comfortable and guarantees it won\’t go up.
* To switch from a fixed rate to a variable interest rate. If you plan to sell your
home in the next few years, you can lower monthly payments with a variable rate.
* To convert to a loan with a shorter term. That lets you save on interest payments
and build up equity in the property more quickly.
How do I decide if refinancing is really the right move?
The decision depends on several factors: the new interest rate, refinance costs, the
length of time you plan to stay in the house, how much equity you have built up in
the property, and whether you plan to take cash out of the refinancing to pay for
something like a home improvement project or a new car.
If you plan to move in a year or so, closing costs on a new loan might mean the
refinancing is not worth it.
What is a \’cash-out\’ refinancing?
One that lets you walk away with cash that can be used to pay for things like home
improvements, new cars, or holidays.
Home values have soared in Australian communities over the past few years and many
homeowners have built up substantial equity in their properties, qualifying them for
refinancing to take cash-out loans. Typically, banks will lend up to 80 percent of
the value of your home, and upto 95% in some cases .
For example: Your home is valued at 300,000. You may be able to borrow as much as
$285,000.
Do I have to go the lender who gave me the original mortgage?
No. Shop around, and do business wherever you get the best deal. If you apply to the
original lender, however, you might save money on refinancing costs because new
documents – such as a property valuation – might not be required.
To have one of our qualified home loan consultants show you the best loan to
refinance onto click here NOW!
Refinancing to Lower Monthly Payments
refinancing your home loan onto a lower interest rate is possibly the best move you
can make, as you will end up saving thousands of dollar$ as well as getting you out
of debt quicker!
You may look at refinancing your home loan to consolidate some outstanding credit
card debt, which just wont go away. By refinancing this credit card debt onto your
home loan you are saving a lot of money, as youll being paying interest at 7% rather
than 16%.
Refinancing your home loan may also allow you to obtain some extra cash out for doing
such things as renovations/home improvements or that new car youve been wanting! This
is definitely a better option than getting out a personal loan or a car loan at
higher interest rates.
To find out if NOW is a good time to refinance and save money on interest click here
NOW to get your FREE quote.
Refinancing Your Way Into Wealth
Refinancing
You are pretty much guaranteed to refinance your home loan at some stage throughout
your loan term.
Why Should I Refinance?
There are a few reasons for refinancing your home loan:
* To lower your monthly payments
* To shorten the length of your mortgage term
* To take advantage of lower interest rates
* To finance a home renovation
* To consolidate bills/rates
* Reduce interest rate risk
Refinancing your mortgage can give you a lot of options as far as the freedom of a
little bit of extra cash. There are a few different ways that you can go about
refinancing and the best way for you depends on what you are hoping to accomplish and
what your own personal situation is.
When should I Refinance ?
The best time to refinance your mortgage is when you have outstanding personal debts
on higher interest rates, such as credit cards and car loans. This way you are able
to get your personal debt off these high interest rates of 16% and down onto rates of
around 7%. This results in a massive saving in interest as well as freeing up some
much needed cash flow for you and the family !
Refinancing is a great time to re-assess your loan structure, as it gives you the
opportunity to get your broker to shop around for Australia\’s best home loan.
There are a few loan structures out there on the market, which will give you
exceptional flexibility and freedom. This means that you will never have to worry
about refinancing your loan down the track, which will potentially save you on
incurring more application fees, valuation fees, solicitor fees and stamp duty !
One of the latest stats in the mortgage industry is that the average Australian
refinances their home loan every 3.9 years. Now as we all know, banks are
exceptionally clever businesses. They are able to generate profits of up to $1
million p/hour per day.
During the first 5 years of your mortgage, the majority of your repayments will go in
interest (bank profit). When you refinance your home loan to purchase a car or go on
that holiday, the banks are quite cheeky as they reset your home loan clock back to
the start of another 25 or 30 year mortgage. Hence you start all over again, having
to pay back an obscenely large amount of bank profit (interest) for the first 5
years, and the vicious cycle begins again…..
Refinancing has become a valid option for many individuals with high interest rates
on their mortgage. Refinancing is essentially a replacement loan, with a different
lender and (hopefully) a lower interest rate.
What will it cost me?
Refinancing does carry some costs that you need to be made aware.
Valuation Fee This is the fee for a professional appraisal of the value of your
house.
Credit Report An assessment of your credit health
Lender Fees Any other fees that are incurred by using a particular lender
Stamp Duty – Government charge
Solicitor Fees – Drawing up loan documents
All of these costs vary from lender to lender, but we are able to get you the best
deal with the lowest interest rates and costs !
To discuss your refinancing options with one of our consultants contact us NOW !
FHA Mortgage Loans with Cash Out Refinancing
Nationwide Mortgage Loans provides low rate FHA loans with Cash Out refinancing options for borrowers looking to raise capital and consolidate debt. Take advantage of record low interest rates and get access to cash with 95% FHA home loans. HUD now requires 2 appraisals with all cash out loans between 85% and 95%. FHA underwriters are more critical than ever evaluating appraisals because of the foreclosure crisis.
Lock into record low 30-year fixed mortgage loans with interest rates dipping below 5%.
Visit us online at http://www.bdnationwidemortgage.com/ and to learn more about the FHA home loan program guidelines, go to http://www.bdnationwidemortgage.com/fha-home-loans.html and we appreciate the opportunity to earn your refinance business.
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Why should you refinance your home loan ?
Our society is increasingly becoming dependent on credit and in particular, credit
cards. This is a direct result of clever marketing campaigns and softening lending
policies by banks and the convenience associated with credit cards.
Our parents all lived in a \’savings\’ based society, where if they didn\’t have the
cash they didn\’t buy it! These days we are continually being exposed to direct
marketing and easy access to credit. This has resulted in us transforming into a
\’credit\’ based society, where if we don\’t have the money we just put it on credit and
worry about paying for it later!
One of my clients owned a house with a mortgage and after reading about the option of
refinancing his home loan and credit card, he decided to contact me (a refinancing
specialists) to find out more about how refinancing his mortgage might be able to
help him. He really wanted to reduce his monthly repayments and be out of debt
quicker.
He owed $220,000 on his home loan with repayments of $1483 per month, as well as
$10,000 on a credit card which he paid $400 per month at an interest rate of 16%. A
total Debt Repayment of $1883 per month.
He refinance his credit card with his home loan, and now the interest rate for his
his credit card debt will drop to around 7%:
He now only pays $1,341 in interest – which is a SAVING of $542 per month.
Every day I\’m helping my clients save hundreds of dollars a month by refinancing
their credit card debt.
Due to the fact that every situation is unique, its important that you let one of our
qualified refinancing specialists help assess your situation for FREE and in turn
provide you with the available options.
Understanding Refinancing – A Case Study
refinancing has become a commonly used term in the Australian
finance industry, but the benefits it offers are second to none !
Today I\’m going to give you an insight into how one of my clients\’ has
benefited from Refinancing.
When I first sat down with Tom and Emma at the start of 2006 they had
your standard home loan at 7.5%, car loan at 10.9%, store card at 17%
and credit cards at 12%. They were finding their cash flow very tight and
difficult due to their numerous commitments, and they were in the
unfortunate position of having to live from pay to pay. Their financial
stress was a heavy, unwanted weight on their shoulders and they wanted
it removed.
Their monthly debt repayments were $1,850 per month for everything,
which was well over 50% of their income. We carefully went through
their budgets very meticulously and realized that they were literally
spending $649 more than what they were earning.
This deficit (shortfall) was forcing them to rely on their credit cards each
and every month to get by, and as a result of this they became maxed
out as the financial pressure continued to build. They knew they were
drowning in debt and something needed to be done about it.
After sitting down with Tom and Emma and discussing their various options,
they decided that rolling all of their debts into the one loan would be more
manageable and beneficial.
Luckily, they had enough equity in their home to enable this to happen.
When they bought the property 3 years ago they were fortunate enough
to have a substantial deposit and they have also benefited from some
capital growth in the area. All this available equity was just sitting in their
house, being wasted.
They felt that they should be able to utilize the equity in their house for their
benefit. By putting all of their \’eggs into one basket\’ they would end up
having a much lower monthly repayment and they\’d only have the
responsibility of servicing one repayment.
We were able to consolidate all of their debts onto the one loan, which
gave them the one, simple low repayment of $1,107 per month.
This gave them a saving of $743 per month in repayments, which resulted
in a complete turnaround from spending $649 more than what they earned
to being left with a surplus of $94 per month!
We were able to achieve this result by changing their financial structure
onto a more efficient and effective way of banking. We went through
their budgets and were able to implement a foolproof way of helping
them manage their money.
We also got their incomes to start working for them, rather than having
their incomes working for the banks. By having their incomes working
for them, we were able to get them out of debt in 17 years rather than 29 years!
This meant that they are going to be saving $83,977 in interest because
they are debt free 12 years quicker!
P.S. Just for the record, they started in 2006 with a debt level of $191,923
and at the start of 2007 they had reduced their debt down to $178,677.
They have knocked $13,246 off their debt in the last 12 months –
these results certainly aren\’t achievable when your mortgage is on a
standard 25 or 30 year P & I home loan from one of the banks!
They are now looking at purchasing their first investment property in Richmond.
If you would like to be shown how a refinance can Reduce your
monthly payments and get you Debt Free quicker, simply send me
an email asking for a No Obligation FREE Quote Now!