Refinance Your Mortgage and Improve Your Finances
Taking out a mortgage is a big step, and if there's one payment each fortnight or month that causes the most headaches, it's almost always the mortgage payment.
Mostly because it's the biggest!
If you've had your home loan for a while, but are struggling to meet the payments, then refinancing your mortgage may be something worth considering.
Or perhaps you've built up a lot of high interest rate debt, such as credit card debt, and really need some relief to make things easier.
Basically, refinancing your mortgage means that you pay off your loan with your current lender, by taking out a loan with another lender.
The reasons people choose to do this are almost as endless as people themselves, but generally there are a few main reasons.
One is to change your loan type - for example, to move from an adjustable (variable) rate mortgage into a fixed mortgage.
It might be that your income or credit rating have improved since you first took out your home loan, and so now you're eligible for a better deal.
Your house may have increased in value and you want to take advantage of that to consolidate your debts.
Mostly, though, people refinance their mortgage so that they can get a better deal - and lower repayments.
Refinancing your mortgage isn't hugely different to applying for a mortgage in the first place.
As a minimum, you will still need to produce financial records, earning details and credit reports as part of the applciation process.
You must list your debts and assets, verify your employment, produce financial accounts such as bank statements, have a copy of hte title of your land, and generally just prove that you're worth the risk.
It's also necessary to provide details of your current monthly mortgage payment and your outstanding mrotgage balance.
It's generally helpful to also show the status of insurance payments and property tax.
You also need to provide the contact details for your current lender, so that the new lender can coordinate the refinancing.
Of course, none of this happens for free - mortgage refinancing involves just as many fees as taking out your initial mortgage.
Perhaps even a few more! So be prepared to pay for things such as :
- application fee
- title search
- title insurance fees
- appraisal costs
- prepayment penalties
- loan origination fee
- discount points
- legal service fees.
It may be possible to negotiate some of these fees, to help make the refinancing easier.
It may also be possible to add some of the fees to your new loan balance.
You need to ask about these possiblities as early in the process as possible.
Mortgage refinancing is a big step, there's a lot involved, and it's worth thinking through a few questions before going ahead with it.
For example, think about:
- how long you expect to stay in your house
- how many years remain on your existing mortgage
- can you afford to pay the costs involved in refinancing
- will you still be able to put some money aside for a rainy day
Spend some time running your numbers through a mortgage calculator, or else sit down with a good mortgage broker and let the broker do the number crunching for you.
It may also be a good idea to talk to your financial adviser, and perhaps even your original lending company.
You may be able to make some changes to your loan or loan package, without having to incur all the costs involved in a complete mortgage refinance.
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Rental Property - Refinance, Don't Sell
You own a rental property for years, and never see the "big pay-off." Is it time to cash in on your investment, now that you've paid down the mortgage, and values are up? Maybe not.The Problem With SellingSelling means you'll have to pay a large capital gains tax. This can be avoided if you reinvest through a 1031 exchange, but then the point is that you want your money, right? Also, a good rental gets more income as rents go up. Do you want to lose this inflation-indexed retirement plan? What's the alternative?Refinancing Rental PropertyHave you considered that if you refinance, you can get much of your gain out of the property, without paying a penny in taxes? Borrowing money is not a taxable event. You can take it and spend it however you want, and still keep your rentals.Let's look at an example. Suppose you have owned a small apartment building for years.
You bought it for $240,000, with a downpayment of $40,000, and mortgage payments of $1650 monthly on the...
Rental Property - Refinance, Don't Sell
Refinance > Rental Property - Refinance, Don't Sell
Credit Card Debt Consolidation Home Loans Now Available With the "Payment Buster" Refinance Program
Winter Park, Florida (ContentDesk) March 6, 2006 -- Credit card debt consolidation mortgage refinance loans - http://www.fgmnet.com/debt_consolidation_mortgage_loan.php - can help consumers take control of their credit card debt load by paying off their credit card balances with a home refinance loan. First Guarantee Mortgage (http://www.fgmnet.com) a home mortgage refinance expert resource and multi-state mortgage broker located in Winter Park, Florida is now offering a Payment Buster debt consolidation home loan program to help homeowners with high credit card debt to refinance and gain tax benefits as well as lower monthly mortgage payments.With the Payment Buster debt consolidation refinance program homeowners now have the opportunity to consolidate all their high interest credit cards payments into one low tax-deductible payment.See more...
Credit Card Debt Consolidation Home Loans Now Available With the "Payment Buster" Refinance Program
Refinance > Credit Card Debt Consolidation Home Loans Now Available With the "Payment Buster" Refinance Program
Retirement Savings Basics For a Secure Financial Future
The difference between an IRA and an ordinary investment account is that there are special tax advantages, but restrictions on the account apply. Individuals can only contribute up to $3000 per year to their IRA, or $3500 for people over fifty who want to jump start their retirement savings program. These limits are set to rise over the next few years, to $5000 in 2008, or $6000 for people over fifty. The contributions must be made from money which has been earned in the year the contribution...
Refinance Retirement Savings Basics For a Secure Financial Future ira
Refinance > Retirement Savings Basics For a Secure Financial Future
Refinance
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