Robbie T. James asked:




Home is where the heart is. Home is where you hang your hat. Home… well, you get the picture. The home holds a dear place in the heart, minds and souls of pretty much everyone on the planet.

And yet, from a less sentimental perspective, the home can be seen yet another way: it is where we invest a heck of a lot of money.

Yes, besides the sentimental and practical value of our homes, they also represent a very significant financial investment for each and every homeowner. Not only are there the up-front closing costs and down payments associated with buying a home, but there are the ongoing, monthly expenses as well. No matter the value or price of your home, it is almost a sure bet that it wasn’t cheap to buy.

Maybe you have been able to make your mortgage payments for a number of months or years, but then something happens in life that makes it harder to keep up. Maybe you are able make your mortgage payments, but doing so causes you to sacrifice too much in other important areas of your life. Or, maybe you have been consistently late in making your payments – and may even be risking default.

In those cases, a mortgage loan refinance may be in order.

When To Consider Mortgage Loan Refinancing

Regardless of whether you actually have trouble making your monthly mortgage payments or whether you would just like to save some money like everybody else, an excellent way to reduce your payments is to refinance your loan.

While there is no single magic formula for knowing when it is best to refinance your home, there are some rules of thumb that can help. You should consider refinancing if:

a. you notice that mortgage rates (such as 15 year fixed or 30 year fixed) have gone down since the time you got your current mortgage by at least 0.5% to 1%

b. your credit score has improved since the last time you refinanced

c. you would like to extend the term of your loan to 30 years from 15 or 20 years

d. you have equity in your home that you would like to cash out (turn into cash)

Mortgage Loans Refinance: Home Loan Tips

If you are considering refinancing, the next step is to shop for the best deal. Here are 3 tips that can help you make the right decisions:

1. Research the best mortgage loan refinance lenders in your area: Start by making a list of at least 5-6 lenders who specialize in refinancing.

2. Figure out the ideal mortgage term for your new loan: Use an online mortgage calculator. By plugging in different payment terms (e.g., 15 years, 30 years, etc.) you can figure out how this will affect your future monthly payment amount.

3. Apply to multiple lenders: Be sure to apply to all of the lenders on your list. Remember, more lenders means more choices, which means a better chance of landing an excellent rate.

Follow these 3 tips to get the best-possible interest rate on your new mortgage loan refinance.

Jesus

Darin Sewell asked:




Nothing is more frustrating then receiving word you have a declined mortgage refinance loan. Not being able to secure financing can make all the plans that you had seem to go right down the drain. But knowing the common reasons for loan denial can go a long way in helping to stop the potential problem before it starts.

Why Home Loans Are Declined

Home loans are declined because the underwriters at the lenders have decided your loan either did not fit into their lending guidelines or you were to risky a borrower. The underwriters act as a wall of protection for the lender so if something does not make sense to them they may either ask for clarification or deny the loan.

Common Reason For Loan Denial

One of the most common reasons mortgages get turned down is from borrowers giving false or inaccurate information. Many times this is done by accident. Even when done by mistake it is hard for underwriters to look past false information as it appears to look like potential fraud.

Wrong income levels are often stated on loan applications. The best way to avoid this is to go by last years income on your W-2. If you have had a raise and are hourly figure 40 hours a week as your base salary. Wrong income is the quickest way to get your loan terminated in underwriting.

Property values are another common reason mortgages get turned down in underwriting. People may tell their loan officer their home is worth a certain amount only to find out it is worth much less then they thought This is especially true today with the recent drop in real estate values in many parts of the country.

A credit score drop is also another common reason for losing your loan. One of the biggest mistakes people can make is to have multiple mortgage companies pulling their credit. While a few credit pulls will not hurt you having more then 4-5 credit pulls can start to damage your score. To avoid this stick with three reputable mortgage companies and get quotes from each one.

Adam

Carrie Reeder asked:




Here are some of the benefits to doing your home loan refinance online:

Everything seems to happen faster – Online, when looking for a mortgage loan you can search around, fill out an application and a few minutes later, you can be receiving a pre-approval letter via email. There was no calling, no driving & no waiting on hold for an answer. The mortgage company will usually contact you quickly and give you all the information you need to move forward.

You will be more informed and make better decisions – People nowadays that use the internet as consumers, use it primarily to make better purchasing decisions. If you are sitting at home on the couch with your phone book calling every mortgage company listed, you are not going to know what the current interest rate is. You aren’t going to know what your contacted companies competitors are like. All you will know is what that loan officer tells you.

Online, you can view a lot of information very quickly. – After looking at a few mortgage loan websites, you will know quickly that when you refinance you have many options. Do you want to get cash out of your home? Do you want to borrow more than your homes current value? Do you want an interest only loan? And, you will know right away which mortgage companies offer these options. There are many different kinds of refinance loans, and all of these options can be learned after a few minutes of searching online.

Deal with large, reputable companies – When applying online, you should quickly be able to spot the larger, more reputable mortgage companies. I always prefer to use the companies that will submit your application to multiple lenders. That way, your credit is only pulled once, and you can receive multiple offers from up to 4 lenders. For a list of these recommended mortgage companies, see the link below.

Save money – Many online mortgage service companies can save you money by cutting out fees like origination fees and underwriting fees. You will also save money using mortgage services where more than one lender competes for your business. When you can receive multiple offers, you will know that you are choosing the loan with the lowest rate possible and the best terms you can qualify for. I usually recommend applying with about 3 different mortgage companies that will submit your application to multiple lenders and give you multiple offers. That way you can really maximize your options.

Less Commitment – You can search around online and apply to 2-3 different lenders without feeling guilty for working with more than one company. That way you make can make sure you are getting the best deal. Often when you start working with a mortgage broker in person, even if the person isn’t doing the best job for you, you start to feel obligated to continue to work with the person. This is not so online. If you aren’t getting what you want, you are free to move on with no guilt.

For a list of recommended mortgage companies to refinance with online, click on the link here: recommended
refinance mortgage lenders. The mortgage companies recommended on my website, for the most part, will submit your application to more than one lender and provide you with multiple offers.

Caroline