The Mortgage Manifesto!

Refinancing: It is getting tougher!

Homeowners are finding it tougher to refinance, and it won't get any easier. Many borrowers have chosen adjustable rate loans over the past 5 years or so. The majority of those loans have been interest only and negative amortizing optional payment programs, which makes it even more difficult.

The greatest issues to watch out for are: possible prepayment penalties and whether or not you have had an erosion of equity with so many markets declining in value. if either one of those is a part of your loan scenario, you may not be able to refinance when your loan adjusts to the current rates. Unfortunately for many, you may have an increase in your house payment of more than...

Refinancing: Should I or shouldn't I?

Are you aware that on average, we refinance our home loans about every four years?  If you have been in title of your home more than two years, you should be reviewing your mortgage options.

As years go by, your financial picture changes as do your priorities. Ideally your home mortgage should also be assessed and if need be, changed to reflect those new requirements.

By educating yourself with the help of the Mortgage Manifesto, you will have the insider secrets and facts needed to determine which mortgage product is perfect for you and the lowest costs to get it. You will have the tools necessary to negotiate and to:

> Lower your monthly mortgage payments
> Payoff your mortgage earlier than planned
> Purchase an investment property with equity you can now access
> Consolidate debt to reduce interest costs and lower monthly payments
> Remodel and update your home like you dreamed of
> Fund education or medical needs

But before you do anything, be aware of all the costs involved in refinancing:

• Loan costs: Be sure you know all the costs that come with the refinancing of a mortgage. Check to be sure there are no penalties for paying off your current loan ahead of the scheduled term. Make sure you know all the costs including origination fees, credit and appraisal fees, legal and title or escrow fees, mortgage insurance costs and many more. Only after you are sure of all the costs can you accurately determine if refinancing is a good financial decision. Don't be surprised if you find it takes many years to recoup the costs when comparing the actual difference in your new house payment.
• Consolidation other debts: there can be many advantages to refinancing for the purpose of reducing your other consumer debt. To be continued...