Kit On Blog – My Casual Note

Share with you as some articles read online, it may help by Don Rainwater

If you have had a mortgage for sometime and you are noticing that the interest rate keeps dropping down far below the interest rate that you got on the origination of your loan, it might be time to remortgage your property. By remortgaging your property, you can have a smaller interest rate, or your monthly payment could go down. The borrower needs to evaluate the remortgaging process. Search the market to investigate your options, and talk to a financial advisor to find out how you can remortgage today.

Remortgaging does not only allow you to lower your interest rate, it may also help you to have a little extra money for conditioning your house for a bigger resale value. The money saved from remortgaging can allow you to build a swimming pool, add an extra room to your home, or buy new appliances. Any of these additions will improve and add value to your house upon resale. Remortgaging may help you acquire savings by lowering both interest payments and balance payments. Remortgaging can place the borrower in direct control over their own finances. The borrower can redirect their money into more fruitful financial enterprises.

A Repayment Mortgage Will Save You Money

A repayment mortgage is a unique mortgage program offered to United Kingdom citizens. With a repayment mortgage your house will be paid for on a month-to-month basis. This allows for the interest to occur, but the home will not lose any equity due to a clause in the agreement that the repayment mortgage will pay off the balance first. A repayment mortgage has more benefits than any regular mortgage. Regular mortgages cause the home owner to pay mainly just the interest for the first 10 years of your mortgage payments.

After your monthly payment is made to the mortgage company the majority of the payment will go towards the balance of payment. The loan itself will be reduced on a monthly basis thus leaving the interest rate lower by pulling in a lower amount upon the balance. As time goes on, the equity percentage and the property start to decrease. This takes time because the first few years of the loan will be primarily paying the interest rates. Negative equity is not a problem with a repayment mortgage. Since the balance is being reduced on a month-to-month basis the equity will not go toward a downward trend. You will end up saving a lot of money in the end

Share with you as some articles read online, it may help by Barbara Dufrene

How to refinance your mortgage

The first step in considering a refinancing of your mortgage is to discover the MARKET VALUE.

The market value is not always equal to what an independent APPRAISER may find. The market value of a home is based on what a buyer is willing to pay as a purchase price is less than 90 days on the market. The MARKET VALUE will be more in line with what the lender will consider as actual value. The lender will need to sell the property quickly in the event of foreclosure, therefore market value in always considered by the lender, especially in a declining market. An Appraised value is based on the most recent comparable closings.
Appraisers will generally go back six months for data to determine value. In a declining market the appraiser will give more emphasis to the most recent comparable. Appraisals ordered by the MORTGAGEE will not often be used by the lender in determining the value for the refinance. Lenders have a bank of appraisers that are generally more conservative than the independent appraisers. It is important to know the amount of EQUITY that the lender will most likely consider in the refinance before paying for non refundable lender fees.

Market Value can be obtain from your local Realtor for a fee considerably less than the cost of an appraisal. A key factor in aiding you in the decision to refinance will be in the Market Value. Once you obtain the Market Value and determine that the equity you have is ample to meet your refinance goals, you should proceed with the lender selection.

It is a good business choice to call upon several lenders and interview with several LOAN ORIGINATORS. Set up an appointment with a loan originator and have a list of questions ready for the interview. Good examples of questions to ask are:

1. With the equity that I assume I have in my home, what type of mortgage would you
recommend?

If your intentions are to mortgage 80% or less of your equity, the most logical answer should be CONVENTIONAL or NON CONFORMING FINANCING. The reason for this is a a savings that you will enjoy by not having to pay PRIVATE MORTGAGE INSURANCE. This is a fee that is charged to you monthly and can vary anywhere from approximately $50.00 – $350.00 per month.

If your intentions are to take all of your equity, are as much as possible, then an FHA or VA refinance is more logical. These type of loans allow maximum LOAN TO VALUE.