Saturday, February 16, 2008

Refinancing Your Mortgage for the Right Reasons

There are a several reasons people decide to refinance their home mortgage. Some do it for the right reasons and unfortunately some refinance for the wrong reasons. If you are thinking of refinancing your home mortgage ask yourself some important questions first.

Do I have To Refinance?

Experts recommend refinancing a home mortgage when you don't have a better option and you need extra cash. If you know that refinancing will be the ultimate solution, once you've done your due diligence, then go ahead. If you are hesitating maybe wait a bit longer or perhaps contact a few lenders and get some opinions.

What is the main purpose you would like to refinance?

If it is for home improvements, or to extend your mortgage repayment period then chances are that you are on the right track. For example, if you have obtained an Adjustable rate mortgage and would like to refinance to a Fixed Rate Mortgage, read the TOS before making a decision. The total costs may not be worth it. However, if you can afford the payments and you will feel comfortable, refinancing may be a good idea.

Am I refinancing To Improve My Credit Score?

This is a big NO! When you refinance with bad credit ratings the chances that you will get a good rate are very low. The cost of refinancing is just not worth it. First pay your bills on time. In the course of a few months you will belong to the prime market where you will find better rates.

Before applying for the loan, obtain home refinance loans information for the best deal and avoiding scams.

Finding home mortgage lenders online is what will make your loan worth while. If you are looking for a debt relief solution labeled as bad credit debt consolidation loans for people with bad credit may be your way out of debt.

Home Mortgage Refinance with Bad Credit

Refinancing your home may be easier than you ever thought possible—even if your credit is less than perfect. This article offers information on applying and qualifying for a home mortgage refinance with bad credit.

Bad credit doesn’t need to prevent you from refinancing your mortgage. There are many lenders out there who will be more than willing to work with you to get you the refinance mortgage loan you need to lower your interest rate, change your monthly payments, and if necessary, provide you with cash at closing.

What Bad Credit Means to Your Refinance

Bad credit won’t necessarily stop you from getting approved for a refinance mortgage loan, but it will affect the amount of interest you pay. The worse your credit is, the higher your interest rate will be. If you are in a position to do so, you should try to improve your credit score before applying for a refinance loan.

Applying for a Loan

If you are attempting to get a home mortgage refinance with bad credit, you may need to work with a lender in the sub-prime market. Though most lenders are reputable, you may want to do some research and shop around before settling on any one lender. The last thing you want your refinance to do is get you further into financial trouble.

After Refinancing

Sometimes when you get a home mortgage refinance with bad credit, you end up paying more in interest than you would like. If this is the case, you will want to consider refinancing in another year or two. By then, you will have improved your credit score by making regular payments on your refinanced mortgage.

For a list of Recommended Bad Credit Mortgage Refinance Lenders Online, visit, an informational website about various types of loans.

Choosing the Right Home Mortgage Refinance Loan

If you are considering a home mortgage refinance loan, it is important to choose the right type of loan for your financial situation. Choosing the wrong home mortgage refinance loan could result in overpaying thousands of dollars or even losing your home. Here are several tips to help you determine which type of home mortgage refinance loan is right for you.

Home Mortgage Refinance Loan: Fixed Interest Rates

Mortgage with fixed interest rates are the traditional mortgage your parents had when they purchased a home. Fixed means the interest rate does not change for the duration of your mortgage. If you need minimal risk and a monthly payment amount you can plan your budget around, a fixed rate home mortgage refinance loan could be right for you.

Home Mortgage Refinance Loan: Adjustable Interest Rates

Adjustable rate mortgages usually come with a low introductory interest rate; however, this interest rate is not fixed. Your lender will periodically adjust the interest rate and your payment amounts to the financial index your loan is tied to. This rate adjustment usually occurs annually; however, the exact timeframe for adjustments can be found in your loan contract. Adjustable Rate Mortgages are best suited for homeowners that know what they are getting into and have a high tolerance for financial risk.

Home Mortgage Refinance Loan: Jumbo Mortgage Loans

The 2007 limit for traditional mortgage loans, also called the “conforming loan limit” is $417,000. If your home mortgage refinance loan needs to be greater than this you will need a jumbo mortgage loan. Because these loans come from non-traditional mortgage lenders you can expect to pay a higher interest rate for the financing. If you currently have a jumbo loan and owe less than $417,000, you should refinance as soon as possible as you will qualify for traditional financing.

You can learn more about your home mortgage refinance loan options, including costly mistakes to avoid by registering for a free mortgage tutorial.

To get your free mortgage tutorial visit using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit

Claim your free mortgage refinance information guide today at:

Home Mortgage Refinance Loan