The Right Time For Mortgage Refinancing


The Right Time for Mortgage Refinancing
If interest rates have dropped by a​ percentage point or​ more since you​ got your first mortgage,​ refinancing could save you​ big bucks .​
And if​ you​ have enough equity so that your new mortgage is​ for less than 80% of​ your home’s value,​ you’ll be able to​ stop paying Private Mortgage Insurance (PMI),​ which will save you​ even more.
Mortgage refinancing could also result in​ lower monthly payments,​ depending on​ factors such as: if​ any ‘points’ are paid to​ lower the​ interest rate on​ the​ new mortgage; how much cash is​ taken out at​ the​ time of​ refinancing; the​ duration of​ the​ new mortgage and whether the​ new mortgage is​ a​ fixed-rate,​ adjustable-rate or​ variable-rate loan.
A vast majority of​ people close their loans,​ make their payments and don't worry about it​ again,​ says Bob Cannon of​ BancMortgage Financial Corp .​
They don't refinance when they should be looking at​ it.
Even if​ you​ have bad credit and have to​ pay somewhat higher interest rates,​ mortgage refinancing will still cost less than other forms of​ borrowing because the​ loan is​ secured by your home .​
And if​ you​ use the​ money wisely,​ you​ can get out of​ credit trouble and raise your FICO score .​
This will qualify you​ for better rates in​ the​ future.
Your FICO score is​ computed and tracked by the​ three major credit bureaus: Trans Union,​ Equifax and Experian .​
Your score is​ updated quarterly and is​ negatively affected by such things as: late or​ missed loan payments,​ filing for bankruptcy,​ having too much debt compared to​ your income,​ and credit card balances being too close to​ their limits.
Fixing Bad Credit
If you​ are a​ homeowner,​ mortgage refinancing can go a​ long way toward improving your financial situation .​
Here are a​ few other positive steps you​ can take to​ speed up the​ process:
Credit card discipline - Reduce the​ number of​ cards in​ your wallet or​ purse to​ one .​
Take it​ out only when necessary and pay it​ off each month.
Credit union membership - If you​ aren’t already a​ member,​ join a​ credit union .​
They’re a​ good source of​ loans for purchases like a​ car or​ a​ home.
Automatic savings - Have your bank automatically deposit a​ set amount from your paycheck into your savings account or​ retirement plan .​
Avoid credit repair scams - There’s nothing a​ credit repair company can do that you​ can’t do yourself with a​ little research and effort .​
Many of​ the​ homes on​ your block have probably been refinanced in​ the​ last few years .​
Now it’s your turn .​
For more information on​ bad credit mortgage refinancing and a​ quote based on​ today’s best rates,​ visit www.badcreditmortgagerefinancingnow.com.



The Right Time For Mortgage Refinancing



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