Get help with your Decision About Mortgage Refinancing. It always helps to have an outside objective opinion. And remember when you refinance you will get a loan based on your income and your credit score. The better your credit score the better interest rate you will get. And remember the loan is against your income not the value of your house
And you have to also keep in mind that your credit score is the determining factor in what interest rate you will get. And with these economic times a great credit score years ago may only be an average score now. You will want to get a copy of your credit score to make sure there are no errors on it that you can change before you apply for a loan.
Do you want a variable loan mortgage rate? Some take this because of the low payment for the first six months or year. But this is a teaser rate in some cases because it is sure to go up after then. You do not want to do what many people did and get in trouble when it goes up later.
The variable is attractive because it has a lower initial rate and lower monthly payment. But it will go up make certain of that. And this is where some people have gotten in trouble. They think that they will have more money when it does go up. But you cannot count on a raise every year in this economy.
Do not kid yourself in this case. If you cannot pay the payment you are looking at losing your home. No one wants that. If you are refinancing a fixed rate mortgage you have to realize that you will start all over with a new loan. If you have ten years on a thirty year fixed, you will start all over with a new loan.
And if you take money out with the refinance you are taking the equity out of the home and spending it. This is plain and simple and should be a sobering thought for you. Some people thought that their home would continue to grow in value but instead their home went down in value. This is where so many people got in trouble.
If you have to sell later on your home might not be worth what it is today and you will either have to have a short sale or have to make up the remaining difference in cash to the lender. But some people think their property will be worth more years from now and they simply have to refinance again. This is why so many people are in trouble today. We cannot always count on property values rising.
You might have a great need for the money you take out in a refinance. But if you want to use it for a new car or vacation that is up to you. But in any case you need to consult with an independent third party like a financial advisor to make sure you make the right decision. - 31366
And you have to also keep in mind that your credit score is the determining factor in what interest rate you will get. And with these economic times a great credit score years ago may only be an average score now. You will want to get a copy of your credit score to make sure there are no errors on it that you can change before you apply for a loan.
Do you want a variable loan mortgage rate? Some take this because of the low payment for the first six months or year. But this is a teaser rate in some cases because it is sure to go up after then. You do not want to do what many people did and get in trouble when it goes up later.
The variable is attractive because it has a lower initial rate and lower monthly payment. But it will go up make certain of that. And this is where some people have gotten in trouble. They think that they will have more money when it does go up. But you cannot count on a raise every year in this economy.
Do not kid yourself in this case. If you cannot pay the payment you are looking at losing your home. No one wants that. If you are refinancing a fixed rate mortgage you have to realize that you will start all over with a new loan. If you have ten years on a thirty year fixed, you will start all over with a new loan.
And if you take money out with the refinance you are taking the equity out of the home and spending it. This is plain and simple and should be a sobering thought for you. Some people thought that their home would continue to grow in value but instead their home went down in value. This is where so many people got in trouble.
If you have to sell later on your home might not be worth what it is today and you will either have to have a short sale or have to make up the remaining difference in cash to the lender. But some people think their property will be worth more years from now and they simply have to refinance again. This is why so many people are in trouble today. We cannot always count on property values rising.
You might have a great need for the money you take out in a refinance. But if you want to use it for a new car or vacation that is up to you. But in any case you need to consult with an independent third party like a financial advisor to make sure you make the right decision. - 31366
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In addition to having less debt by refinancing a mortgage, also look at GIC rates to get higher fixed income returns. Mortgage rates vary from lender to lender so ask around.
