GFM President Issues Warning to Consumers Looking to Refinance: 'Be Wary of All Those Rock Bottom Interest Rates'
Fullerton, CA (ContentDesk) March 1, 2006 -- Thousands of faxes and emails are being sent to consumers all over the country, not to mention television, radio, newspaper and internet ads urging homeowners to refinance mortgage loans at never-before, rock bottom rates for use to help pay down high rate credit cards and other outstanding bills.
Some ads are touting loan plans with rates as low as 1.75% that can cut monthly payments in half.
If it sounds to good to be true, then its probably not, warns Gavin Fenske, President of Great Financial Mortgage, Inc.,www.greatfinancialmortgage.com. 
Although very appealing, the ads dont tell the whole story such as this low rate does not cover the true cost of a loan which can cause even more trouble in the months or years ahead.
The actual rate of a 1.0% mortgage is in fact around 7.0% with the possibility to climb even higher depending upon the life cap.
These are monthly adjustables with the potential for negative amortization meaning your loan balance may grow over time.
Moreover, these types of loans are truly suited for those with substantial equity or a larger down payment.
Having said this, many lenders are selling borrowers on these loans anyway even if they do not fit the profile. We have been inundated with calls from people all over the country wanting to refinance at these low rates and I am finding out that most people dont really understand the ultimate cost to them.
Its more important that my clients totally understand the effect on their monthly payments even if it means they choose not to refinance at this time, explains Fenske.He advises anyone shopping for this type of mortgage to ask about the start rate, margin, index and life cap.
These loans all look the same on the surface but getting a good deal will all come down to details.
Compare the margin, index and life cap to really understand whether you are getting a good deal or not.
Fenske further notes there may also be some interest only loans that are not quite as aggressive that may work for your specific situation.Finally, for those looking for a low payment and can absorb the inherent risks associated with the low start rate adjustables, then the following loan is the hottest in the marketplace:Start Rate: 1.24Margin: 2.50%Life Cap: 9.95%Amortization: 40 YearFor more information contact Great Financial Mortgage at (866) 553-1113 or log onto www.greatfinancialmortgage.com.About Great Financial Mortgage:Great Financial Mortgage is based in Fullerton, California. A top originator of mortgage loans, Great Financial Mortgage offers a wide range of home lending services to homeowners and prospective buyers throughout the state of California via person-to-person attention and its website, www.greatfinancialmortgage.com. This coupled with their unique ability to keep ahead of the fast-moving real estate marketplace enables Great Financial Mortgage to exceed client expectations by making their dream a quick realty.Media Contact:PRIME L.A. Public Relations818.995.1290www.primela.com.
Tips on How to Refinance
Tips on How to RefinanceRefinance Mortgage LoanGetting a refinance mortgage loan is a smart move for any homebuyer. This is especially true if the interest rates are low. In the world of finance, interest rates directly affect the way mortgage rates behave. So if the interest rates are low, then mortgage rates will also be low. Low mortgage rates in turn lead to bigger savings from your monthly payments.
And with a refinance mortgage loan, you can take advantage of this basic financing concept and reduce your monthly repayments while at the same time, increase your monthly savings.Another important benefit of refinance mortgage loans is that gives the borrower more flexibility. It allows you to change loan terms from a long one to something shorter. In this way, you can pay off the principal more quickly, thus saving you from the total interest charges.Some Tips on How to Refinance
- Make sure that the drop in interest rates is enough to make a refinance mortgage loan worthwhile
- To...
Refinance > Tips on How to Refinance
Refinance Quote - Get The Best Refinance Quotes You Can Get
When going to refinance or get a mortgage loan quote, the internet can be a useful tool to shop around for the best interest rate. The reason the internet is a good place to start applying, is because most mortgage applications online do not typically pull your credit with the first application. Most of the time, the application will ask you to describe your credit. Once you have received an initial offer, then, the mortgage loan consultant who contacts you will ask you if they can pull your credit.The point is, there is really no risk in applying to many different mortgage companies or lenders online. This can help you compare refinance quotes from multiple lenders.There are quite a few mortgage companies out there that will submit your pre-approval application to hundreds of lenders and then forward you the 4 best mortgage loan refinance quotes.
To see a list of these companies, click on the link below. If you do this pre-approval process with about 3-4 companies, in less than...
Refinance Quote - Get The Best Refinance Quotes You Can Get
Refinance > Refinance Quote - Get The Best Refinance Quotes You Can Get
Refinance
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