Latest Mortgage Articles

How to Get the Best Mortgage Rate When Refinancing

Are you thinking about refinancing your home loan but aren't sure how to get the best mortgage rate? Choosing a lender to refinance can be a confusing process and if you pick the wrong person to arrange your loan you could pay thousands of dollars too much every year. The reason this happens is that your mortgage company or broker adds commission based markup to your mortgage rate. Homeowners who learn to recognize this markup can save themselves thousands of dollars every year. Here are several tips you can use to get the best mortgage rate when refinancing your mortgage. Why Are Mortgage Rates Marked Up? The mortgage company or broker arranging your loan charges you an origination fee for their part in setting up your mortgage. On top of this fee the lender pays them a commission for locking and closing loans with above market mortgage rates. This fee paid by the lender is called Yield Spread Premium. Learn how to avoid it and you can save thousands of dollars every year you have a mortgage loan. Yield Spread Premium And Your Mortgage Here's one scenario to illustrate Yield Spread Premium at work. Suppose you're refinancing your home for...
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Build Equity with Shorter Term Loan

With interest rates decreasing, refinancing your home mortgage loan may have a better interest rate than your current long-term loan. Short-term loan refinancing is achievable with low equity and a less than perfect credit score. Monthly payments will increase in amount, but the loan will be paid off sooner and less interest will be paid out. Mortgage refinancing allows applicants to find the best and most affordable interest rates. More interest is paid out on long-term loans and interest rates may be higher. Average mortgage loans have a 30-year repayment schedule. A 15-year loan produces significant savings over the loan duration. Provided that you have a solid monthly cash flow, a short term refinance can be a wise move. This is due in no small part to the increased monthly payment amount. On the plus side, many short term refinance loans have the same interest rate as their long term counterparts, so you will pay the same interest for a shorter period of time resulting in saving a nice amount over the life of the loan. The goal is to create equity. Short-term mortgage refinancing makes this goal possible. Equity builds quickly because more is applied to the principal amount...
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