If you’re thinking about applying for a second mortgage, there’s probably no better lender than Washington Mutual. They offer various refinance mortgage options as well as excellent customer service and support to make your financial obligations less burdensome.
Types of Washington Mutual Refinance Mortgage
There are basically two types of refinance mortgage offered by Washington Mutual: fixed and adjustable rate mortgages. Other preferences you may have can easily be negotiated for either type.
Fixed Rate Mortgage
This type of refinance mortgage is best if you wish for a simple payment structure; you won’t have to compute for next month’s loan payment because the value will remain the same up to the final payment deadline for your loan. Fixed rate mortgages usually last from fifteen to thirty years, but Washington Mutual also offers a forty-year amortization period for those interested.
Adjustable Rate Mortgages
These are generally short-term in nature, lasting only from one to five years. Their interest rates fluctuate according to various factors but rest assured that Washington Mutual is always ready to consult with you for any adjustment or conversion you wish to make. Different types of adjustable rate mortgages are available and some may even allow you to make interest-only payments for a specified time period, consequently leaving you free to settle more pressing obligations you have.
If you’re interested in a long-term ARM, Washington has that, too. A 10/1 ARM, for instance, will only have the interest rate adjust after the first ten years of the loan.
5 Benefits of Getting a Washington Mutual Refinance Mortgage
Applying for a Washington Mutual refinance mortgage allows you to enjoy various benefits, in which many of them other lenders would be hard pressed to match, much less surpass.
Two Week Processing Guarantee
No matter what your financial needs are and regardless of the type of refinance mortgage you’re after, Washington Mutual can guarantee that your loan application shall be processed not later than two weeks.
Systematic Loan Process
Unlike other loan procedures, Washington Mutual offers a step-by-step procedure for loan application. You’ll be given clear and specific instructions as to what you have to do in order to qualify. Once your loan application has been approved, you’ll be able to acquire your funds immediately and without further trouble.
Manage Your Account Online
Unlike other lenders, Washington Mutual doesn’t make it hard for you to acquire any information you need regarding your loan. To manage and access your account online, proceed to the company’s official website and submit your email address, social security number, and loan number at their My Home Loan page.
Your online account will be activated shortly and you’ll be given your login details. Afterwards, you can then find out all the information you need from payoff to escrow accounts. You can even get a tax deduction certificate or use your account to take advantage of other add-on products available on the website.
Documentation at Your Fingertips
If you have a need to print any document related to your Washington Mutual refinance mortgage, the company has facilities ready to meet your printing needs any time of the day.
Immediate Fund Transfer
You don’t need to look for a Washington Mutual branch just to procure your funds. If you have an account in any major financial institution, your loan funds can be sent there immediately through electronic fund transfer.
VA Streamlined Mortgage Refinance
The unfortunate fact is that not everyone is eligible for VA streamlined mortgage refinance. If, however, you prove to qualify then you stand to enjoy various advantages.
5 Benefits of Getting VA Streamlined Mortgage Refinance
VA streamlined mortgage refinancing is different from other types of loans because of the unique benefits it offers, some of which are listed below.
No Appraisal Requirements
Property assessment has always been part and parcel of the loan application process but VA streamlined mortgage refinancing is a definite exception. As long as you prove to meet the requirements for the loan, an appraisal of your property is no longer necessary. Automated valuation or a drive-by assessment would more than do.
No Credit Check
VA doesn’t care about your current credit rating. This may be bad news for those who have worked hard to maintain a stellar credit score but it’s sure to be good news for those with poor credit scores.
The absence of a credit check, however, doesn’t mean you don’t have to meet any other credit-related requirements. To become eligible for VA streamlined refinancing, you need to have an existing loan than you’re currently paying for. If you don’t have a loan then what you need is financing and not refinancing. Secondly, you must prove that you’ve been able to pay on time for the last twelve months or at the very least, you haven’t submitted your payment later than 30 days following your supposed deadline more than once.
No Income Documentation Requirement
VA doesn’t care about where you’re getting your income from either. Unlike with other creditors, you won’t need to email or fax proof of your income. It doesn’t matter if you’re receiving cash income. It doesn’t matter if you’re self-employed. It doesn’t matter if you’re completely reliant on the financial support provided by your loved ones.
No Job Verification
In connection to that, one thing you shouldn’t have to prove is the existence of your job. In fact, there’s no need to lie. If you’re currently unemployed then so be it. The VA won’t care. They use a filtering process for loan applicants different from other creditors.
No Immediate Payment Required
Depending on your financial situation, current circumstances, and eligibility, the VA might be generous enough to give you up to a 2-month grace period before you’re required to make your first monthly payment for your loan. This might not seem much at first glance, but just imagine how much easier budgeting can be if you won’t have to worry about settling your monthly dues for two months!
Get Refunds
This is not, however, applicable for any situation. In particular, the VA may be able to refund your money if you have an existing escrow account.
Easy Loan Closing Process
You won’t have to worry about closing costs and delays when it comes to VA streamlined refinancing. Firstly, you can leave it to your future mortgage provider – the VA in other words – to take over the closing process. Secondly, if there are any closing fees you have to pay, the VA shall take care of that and they’ll simply add the total to your refinance loan balance. You won’t have to pay for them immediately either; they’ll be part of your monthly payment instead.
One thing you should be aware of, however, is that VA streamlined mortgage refinance does not offer cash out options. If you want that, you’re better off with a VA cash-out refinance loan!
5 Benefits of Getting VA Streamlined Mortgage Refinance
VA streamlined mortgage refinancing is different from other types of loans because of the unique benefits it offers, some of which are listed below.
No Appraisal Requirements
Property assessment has always been part and parcel of the loan application process but VA streamlined mortgage refinancing is a definite exception. As long as you prove to meet the requirements for the loan, an appraisal of your property is no longer necessary. Automated valuation or a drive-by assessment would more than do.
No Credit Check
VA doesn’t care about your current credit rating. This may be bad news for those who have worked hard to maintain a stellar credit score but it’s sure to be good news for those with poor credit scores.
The absence of a credit check, however, doesn’t mean you don’t have to meet any other credit-related requirements. To become eligible for VA streamlined refinancing, you need to have an existing loan than you’re currently paying for. If you don’t have a loan then what you need is financing and not refinancing. Secondly, you must prove that you’ve been able to pay on time for the last twelve months or at the very least, you haven’t submitted your payment later than 30 days following your supposed deadline more than once.
No Income Documentation Requirement
VA doesn’t care about where you’re getting your income from either. Unlike with other creditors, you won’t need to email or fax proof of your income. It doesn’t matter if you’re receiving cash income. It doesn’t matter if you’re self-employed. It doesn’t matter if you’re completely reliant on the financial support provided by your loved ones.
No Job Verification
In connection to that, one thing you shouldn’t have to prove is the existence of your job. In fact, there’s no need to lie. If you’re currently unemployed then so be it. The VA won’t care. They use a filtering process for loan applicants different from other creditors.
No Immediate Payment Required
Depending on your financial situation, current circumstances, and eligibility, the VA might be generous enough to give you up to a 2-month grace period before you’re required to make your first monthly payment for your loan. This might not seem much at first glance, but just imagine how much easier budgeting can be if you won’t have to worry about settling your monthly dues for two months!
Get Refunds
This is not, however, applicable for any situation. In particular, the VA may be able to refund your money if you have an existing escrow account.
Easy Loan Closing Process
You won’t have to worry about closing costs and delays when it comes to VA streamlined refinancing. Firstly, you can leave it to your future mortgage provider – the VA in other words – to take over the closing process. Secondly, if there are any closing fees you have to pay, the VA shall take care of that and they’ll simply add the total to your refinance loan balance. You won’t have to pay for them immediately either; they’ll be part of your monthly payment instead.
One thing you should be aware of, however, is that VA streamlined mortgage refinance does not offer cash out options. If you want that, you’re better off with a VA cash-out refinance loan!
Texas Mortgage Refinance Loan
Here are five simple and easy steps to help you acquire the best Texas mortgage refinance loan for your needs.
Step 1 Determine how long you’ll hold on to the mortgaged property.
The length of your stay will have a substantial impact on your future financial situation. It will help you determine the best rates and terms for your Texas mortgage refinance loan. It will allow you to determine, for instance, if you’ll have adequate cash to settle the final balloon payment for your loan.
Step 2 Shop and compare.
One huge mistake made by many first-time borrowers is forgetting to consult their first creditor for mortgage refinance rates. It is, after all, possible that you’re acquiring your second mortgage from the same lender. He could give you lower rates than usual. Your first mortgage might simply have been a consequence of bad timing; inflation, bad market trends, and other economic crises might have been why your creditor have charged you with a high interest rate.
Of course, if your first lender hasn’t anything good to offer then that’s the time you should approach other mortgage providers.
Step 3 Work on pre-qualification.
Be aware that becoming pre-qualified is different from becoming pre-approved. Pre-qualification simply means ensuring that you meet every possible requirement of your future mortgage provider.
Start by determining the ideal type for your second mortgage. What kind of mortgage this time around would best match your financial situation? Would you do better with a fixed interest rate or do you prefer an ARM?
Consider your employment history. While creditors certainly don’t require you to have a Best Employee of the Year award, it would help if you can show to them that you’ve been with your current employer for at least two years. It proves income stability and which to them guarantees consistent and on-time payment. As for those who are self-employed, creditors would also prefer if you’ve at least 25% ownership of the business.
Naturally, your credit score will always be a part of the pre-qualification process. This is true for almost all kinds of mortgages with the exception of VA loans and subprime mortgages. FICO scores range from 400 and 900. Anything bellow 600 makes you a poor credit risk and therefore unqualified for the best mortgage refinance rates. Do what you can to improve your credit rating.
Improve your monthly budget. Although you won’t have any chances to show your budget plan, assessing and adjusting your finances will make you more confident when negotiating with a mortgage provider. You can give them all the assurance they need about meeting their monthly payments.
Step 4 Close your old loan.
It’s time to settle your existing financial obligations in order to make way for your new and vastly improved Texas mortgage refinance loan. Cooperating with your previous and future lender will expedite the process so make sure you’ve got all your documents ready.
The closing process always starts with data collection. For one, your future mortgage provider will check your credit rating and evaluate the property to be mortgaged. If a drive-by assessment or automated valuation cannot be performed, a professional may be called in to make an accurate appraisal of the property. Make sure your property’s ready for this to get the best market value!
Step 5 Apply.
Re-read the loan terms and conditions. Be sure you understand the fine print before signing on the dotted line!
Step 1 Determine how long you’ll hold on to the mortgaged property.
The length of your stay will have a substantial impact on your future financial situation. It will help you determine the best rates and terms for your Texas mortgage refinance loan. It will allow you to determine, for instance, if you’ll have adequate cash to settle the final balloon payment for your loan.
Step 2 Shop and compare.
One huge mistake made by many first-time borrowers is forgetting to consult their first creditor for mortgage refinance rates. It is, after all, possible that you’re acquiring your second mortgage from the same lender. He could give you lower rates than usual. Your first mortgage might simply have been a consequence of bad timing; inflation, bad market trends, and other economic crises might have been why your creditor have charged you with a high interest rate.
Of course, if your first lender hasn’t anything good to offer then that’s the time you should approach other mortgage providers.
Step 3 Work on pre-qualification.
Be aware that becoming pre-qualified is different from becoming pre-approved. Pre-qualification simply means ensuring that you meet every possible requirement of your future mortgage provider.
Start by determining the ideal type for your second mortgage. What kind of mortgage this time around would best match your financial situation? Would you do better with a fixed interest rate or do you prefer an ARM?
Consider your employment history. While creditors certainly don’t require you to have a Best Employee of the Year award, it would help if you can show to them that you’ve been with your current employer for at least two years. It proves income stability and which to them guarantees consistent and on-time payment. As for those who are self-employed, creditors would also prefer if you’ve at least 25% ownership of the business.
Naturally, your credit score will always be a part of the pre-qualification process. This is true for almost all kinds of mortgages with the exception of VA loans and subprime mortgages. FICO scores range from 400 and 900. Anything bellow 600 makes you a poor credit risk and therefore unqualified for the best mortgage refinance rates. Do what you can to improve your credit rating.
Improve your monthly budget. Although you won’t have any chances to show your budget plan, assessing and adjusting your finances will make you more confident when negotiating with a mortgage provider. You can give them all the assurance they need about meeting their monthly payments.
Step 4 Close your old loan.
It’s time to settle your existing financial obligations in order to make way for your new and vastly improved Texas mortgage refinance loan. Cooperating with your previous and future lender will expedite the process so make sure you’ve got all your documents ready.
The closing process always starts with data collection. For one, your future mortgage provider will check your credit rating and evaluate the property to be mortgaged. If a drive-by assessment or automated valuation cannot be performed, a professional may be called in to make an accurate appraisal of the property. Make sure your property’s ready for this to get the best market value!
Step 5 Apply.
Re-read the loan terms and conditions. Be sure you understand the fine print before signing on the dotted line!
Get Rid of Your Subprime Mortgage with a Refinance Loan
Subprime mortgages may seem like a good idea at first glance, but a couple of months – or years, depending on your loan term – later and you may have realized just a bit too late that you’re not ready to meet their requirements. Thankfully, there’s one quick way of getting out of this predicament and that’s by refinancing with a second and better mortgage.
What Are Subprime Mortgages?
Subprime mortgages are offered to people with bad credit. They’re usually the last resort for borrowers since they come with high interest rates and loan application costs. Not only that, but you’ll also be subjected to balloon payments and prepayment penalties. Of course, subprime mortgages aren’t completely bad. Since they don’t take exception to low credit scores, they could be your only means available for your financial needs.
Pay Off Your Subprime Morttgage with a Refinance Loan
Here are five quick steps to help you pay off your subprime mortgage with a refinance loan.
Step 1 Know the right time to refinance with a second mortgage.
Timing is critical and especially when your existing mortgage comes with an adjustable interest rate. The best time to refinance with a second mortgage is right before your interest rate adjusts to a higher one, before your pre-payment penalty is called in, and certainly before your loan expires and you’ll be required to make a balloon payment.
If you don’t know the answers to these questions, you can always contact your creditor and ask. Don’t worry; they won’t take exception to it. They’ll probably think you’re just modifying your budget to cover your monthly dues.
Step 2 Assess your credit rating.
Have you done anything to improve your credit rating since the last time you’ve checked? If you haven’t yet, there are many things you can work on immediately to repair your credit. Firstly, you can close revolving credit accounts that only put you in greater financial debt. Paying on time can also help.
Be warned: if you take this step lightly, you might not be eligible for the best mortgage refinance rates. If you believe DIY credit repair tips aren’t enough, you can always ask help from a professional.
Remember as well that you’re entitled to one free credit report from each of the three major credit bureaus, namely Equifax, Experian, and TransUnion, every year. Take advantage of that!
Step 3 Establish a steady source of income.
Creditors always love people with steady sources of income; it’s music to their ears because it ensures that their borrowers will always have enough money to at least cover their interest payments.
If you want to qualify for a second mortgage and eliminate your existing loan, you need to submit proof that you have a stable and steady source of income. If you are only receiving cash income, make sure to provide documentation certifying the constancy of your cash receipts.
Step 4 Assess your home’s equity.
How much of it is left? How much of it remains untouched? If you’ve used at least ninety percent of your home’s equity, you might not be eligible at the moment for the best mortgage refinance rates. You need to work on reducing the size of your existing mortgage before applying for a second mortgage.
Step 5 Shop, Compare, and Apply
If all’s well and ready then the only thing left to do is shop for rates, make comparisons, and submit your application!
What Are Subprime Mortgages?
Subprime mortgages are offered to people with bad credit. They’re usually the last resort for borrowers since they come with high interest rates and loan application costs. Not only that, but you’ll also be subjected to balloon payments and prepayment penalties. Of course, subprime mortgages aren’t completely bad. Since they don’t take exception to low credit scores, they could be your only means available for your financial needs.
Pay Off Your Subprime Morttgage with a Refinance Loan
Here are five quick steps to help you pay off your subprime mortgage with a refinance loan.
Step 1 Know the right time to refinance with a second mortgage.
Timing is critical and especially when your existing mortgage comes with an adjustable interest rate. The best time to refinance with a second mortgage is right before your interest rate adjusts to a higher one, before your pre-payment penalty is called in, and certainly before your loan expires and you’ll be required to make a balloon payment.
If you don’t know the answers to these questions, you can always contact your creditor and ask. Don’t worry; they won’t take exception to it. They’ll probably think you’re just modifying your budget to cover your monthly dues.
Step 2 Assess your credit rating.
Have you done anything to improve your credit rating since the last time you’ve checked? If you haven’t yet, there are many things you can work on immediately to repair your credit. Firstly, you can close revolving credit accounts that only put you in greater financial debt. Paying on time can also help.
Be warned: if you take this step lightly, you might not be eligible for the best mortgage refinance rates. If you believe DIY credit repair tips aren’t enough, you can always ask help from a professional.
Remember as well that you’re entitled to one free credit report from each of the three major credit bureaus, namely Equifax, Experian, and TransUnion, every year. Take advantage of that!
Step 3 Establish a steady source of income.
Creditors always love people with steady sources of income; it’s music to their ears because it ensures that their borrowers will always have enough money to at least cover their interest payments.
If you want to qualify for a second mortgage and eliminate your existing loan, you need to submit proof that you have a stable and steady source of income. If you are only receiving cash income, make sure to provide documentation certifying the constancy of your cash receipts.
Step 4 Assess your home’s equity.
How much of it is left? How much of it remains untouched? If you’ve used at least ninety percent of your home’s equity, you might not be eligible at the moment for the best mortgage refinance rates. You need to work on reducing the size of your existing mortgage before applying for a second mortgage.
Step 5 Shop, Compare, and Apply
If all’s well and ready then the only thing left to do is shop for rates, make comparisons, and submit your application!
How to Refinance with a Second Mortgage
The decision to refinance a second mortgage should never be taken lightly. Yes, of course it’s one way of acquiring extra cash but it also means acquiring a new loan. You need to make sure that your second mortgage would not just come with surplus cash but better loan rates and terms as well.
Why You Should Refinance with a Second Mortgage
Not every situation would warrant refinancing and not every financial need can be solved with a second mortgage. You need to consider every factor and cost involved in the process before making your decision. Listed below are some excellent reasons that would merit refinancing with a second mortgage.
No More Private Mortgage Insurance
Private mortgage insurance could have been levied on your first or existing mortgage but if you refinance with a second mortgage, you can avoid paying for PMI. Unknown to many, private mortgage insurance is quite a costly expense. You may not notice it because it could already be included in your monthly payments, but PMI can cost you thousands of dollars every year. That’s money wasted and not well-spent!
Consolidate All Mortgages in One Loan
By refinancing with a second mortgage, you can consolidate your existing mortgage and maybe even other debts into one simple loan. Of course, this would only be beneficial if your second mortgage comes with better rates and terms. Shop wisely!
Better Rates and Terms
Had times been especially tough when you acquired your first mortgage? That could be the reason why your current interest rate is unusually high? But today’s market is different and there may be low interest rate mortgages you can now take advantage of. With low interest rates, you’ll be able to ensure lower monthly payments as well.
How about the terms of your current mortgage? Are you satisfied with it? If not, you can refinance using a second mortgage with terms that match your current financial needs. If your first mortgage’s due to expire this year but you haven’t yet enough money for the balloon payment, you can refinance with a second mortgage to settle the last payment and rest easy with a longer loan term.
Cash Out, Cash Back
Last but not the least, refinancing with a second mortgage will give you extra cash. The amount of surplus cash available will of course depend on how much you’ll borrow and the amount you have to pay to settle your existing mortgage.
But that’s not the end of it. If, for instance, you decide to sell your home, you can use part of the proceeds to settle your second mortgage. If you were lucky to get the best refinance mortgage rates then you’ll probably have extra cash once more after closing your loan.
How to Refinance with a Second Mortgage
If you’re convinced about the rightness of refinancing then here’s what you should do to refinance with a second mortgage.
Step 1 Improve or repair credit rating.
It’s the only way to make you eligible for the best mortgage refinance rates. You can do this alone or you can avail of the services of a credit repair company.
Step 2 Shop for rates.
Know which companies offer the lowest rates and what their requirements are in return. Know the costs involved and which of them could be waived in your favor.
Step 3 Apply.
Make sure you read the terms and conditions of your second mortgage before signing up for anything!
Why You Should Refinance with a Second Mortgage
Not every situation would warrant refinancing and not every financial need can be solved with a second mortgage. You need to consider every factor and cost involved in the process before making your decision. Listed below are some excellent reasons that would merit refinancing with a second mortgage.
No More Private Mortgage Insurance
Private mortgage insurance could have been levied on your first or existing mortgage but if you refinance with a second mortgage, you can avoid paying for PMI. Unknown to many, private mortgage insurance is quite a costly expense. You may not notice it because it could already be included in your monthly payments, but PMI can cost you thousands of dollars every year. That’s money wasted and not well-spent!
Consolidate All Mortgages in One Loan
By refinancing with a second mortgage, you can consolidate your existing mortgage and maybe even other debts into one simple loan. Of course, this would only be beneficial if your second mortgage comes with better rates and terms. Shop wisely!
Better Rates and Terms
Had times been especially tough when you acquired your first mortgage? That could be the reason why your current interest rate is unusually high? But today’s market is different and there may be low interest rate mortgages you can now take advantage of. With low interest rates, you’ll be able to ensure lower monthly payments as well.
How about the terms of your current mortgage? Are you satisfied with it? If not, you can refinance using a second mortgage with terms that match your current financial needs. If your first mortgage’s due to expire this year but you haven’t yet enough money for the balloon payment, you can refinance with a second mortgage to settle the last payment and rest easy with a longer loan term.
Cash Out, Cash Back
Last but not the least, refinancing with a second mortgage will give you extra cash. The amount of surplus cash available will of course depend on how much you’ll borrow and the amount you have to pay to settle your existing mortgage.
But that’s not the end of it. If, for instance, you decide to sell your home, you can use part of the proceeds to settle your second mortgage. If you were lucky to get the best refinance mortgage rates then you’ll probably have extra cash once more after closing your loan.
How to Refinance with a Second Mortgage
If you’re convinced about the rightness of refinancing then here’s what you should do to refinance with a second mortgage.
Step 1 Improve or repair credit rating.
It’s the only way to make you eligible for the best mortgage refinance rates. You can do this alone or you can avail of the services of a credit repair company.
Step 2 Shop for rates.
Know which companies offer the lowest rates and what their requirements are in return. Know the costs involved and which of them could be waived in your favor.
Step 3 Apply.
Make sure you read the terms and conditions of your second mortgage before signing up for anything!
Refinance Mortgage Rates
Refinance mortgage rates can make your debts easier or harder to manage. Knowing the various factors affecting them will help you determine the best refinance mortgage to apply for.
4 Factors Affecting Refinance Mortgage Rates
Credit Scores
Do you know what your current credit score is? If not, it’s high time that you do. Credit scores play a significant role these days. They can affect the outcome of not just your home mortgage application but even that of your bank loan and dream job as well.
Credit scores are reflected on your credit reports. You’re entitled to one credit report from each of the three major credit bureaus every year. Get your free copy and review the items listed in them. Is everything accurate and valid? Bankruptcy details, for instance, may be omitted from your credit report when seven years have already passed since its filing date.
Payment history has the greatest impact on your credit score. In short, how good a payer have you been since your first loan or credit account? If you always pay on time, that can only help your credit score and vice versa. To improve your payment record, however, you should consider speaking with your creditors and convince them to extend your deadline.
Naturally, the size of your debt will also have an impact on your credit score. Reducing the amount of your debt will make your refinance mortgage provider more amenable to offering you lower rates and better loan terms.
Other factors affecting your credit score are the type of debt you owe, the length of your credit, and the number of new credit applications you have.
Mortgage Payment History
If you have poor credit score, don’t despair just yet: you still have a few more opportunities left open. Let’s consider your mortgage payment history for one thing. Your overall credit score may be poor but if you have an excellent reputation with your mortgage creditors then certainly, your refinance mortgage provider would be willing to give you lower interest rates for your refinance loan.
Percentage Complete
Finally, how much or how little is left with your existing mortgage? If you are more than halfway done with your current mortgage and you have been fairly consistent in paying your monthly dues on time, your preferred refinancing company is sure to offer you the best rates available.
Naturally, the opposite applies if you’re seeking to replace a fairly new loan. This is understandable, however, so don’t be surprised when your refinance mortgage provider asks you lots of questions. After all, you’re basically asking them to shoulder the rest of your debt in lieu of another creditor. They certainly have the right to ask why you’re replacing a loan you’ve just recently taken out.
Source
Last but not the least, consider the type of company or creditor you’re asking. Long standing and well-established refinancing providers have the means of offering their clients with the lowest possible rates as well as the best service. They’re capable of taking greater risks and that’s why they can afford to negotiate your refinance mortgage rates until you reach a mutually satisfying agreement. Consequently, however, their application requirements are more stringent.
They may, among other things, require you to submit proof that you are earning a specified amount of money each month.
4 Factors Affecting Refinance Mortgage Rates
Credit Scores
Do you know what your current credit score is? If not, it’s high time that you do. Credit scores play a significant role these days. They can affect the outcome of not just your home mortgage application but even that of your bank loan and dream job as well.
Credit scores are reflected on your credit reports. You’re entitled to one credit report from each of the three major credit bureaus every year. Get your free copy and review the items listed in them. Is everything accurate and valid? Bankruptcy details, for instance, may be omitted from your credit report when seven years have already passed since its filing date.
Payment history has the greatest impact on your credit score. In short, how good a payer have you been since your first loan or credit account? If you always pay on time, that can only help your credit score and vice versa. To improve your payment record, however, you should consider speaking with your creditors and convince them to extend your deadline.
Naturally, the size of your debt will also have an impact on your credit score. Reducing the amount of your debt will make your refinance mortgage provider more amenable to offering you lower rates and better loan terms.
Other factors affecting your credit score are the type of debt you owe, the length of your credit, and the number of new credit applications you have.
Mortgage Payment History
If you have poor credit score, don’t despair just yet: you still have a few more opportunities left open. Let’s consider your mortgage payment history for one thing. Your overall credit score may be poor but if you have an excellent reputation with your mortgage creditors then certainly, your refinance mortgage provider would be willing to give you lower interest rates for your refinance loan.
Percentage Complete
Finally, how much or how little is left with your existing mortgage? If you are more than halfway done with your current mortgage and you have been fairly consistent in paying your monthly dues on time, your preferred refinancing company is sure to offer you the best rates available.
Naturally, the opposite applies if you’re seeking to replace a fairly new loan. This is understandable, however, so don’t be surprised when your refinance mortgage provider asks you lots of questions. After all, you’re basically asking them to shoulder the rest of your debt in lieu of another creditor. They certainly have the right to ask why you’re replacing a loan you’ve just recently taken out.
Source
Last but not the least, consider the type of company or creditor you’re asking. Long standing and well-established refinancing providers have the means of offering their clients with the lowest possible rates as well as the best service. They’re capable of taking greater risks and that’s why they can afford to negotiate your refinance mortgage rates until you reach a mutually satisfying agreement. Consequently, however, their application requirements are more stringent.
They may, among other things, require you to submit proof that you are earning a specified amount of money each month.
Refinance Mortgage Balloon Coming Due
Refinancing has proven to be a lifesaver for various reasons and for many people. If you’ve a balloon mortgage coming due, refinancing may also be your salvation.
What Are Balloon Mortgages?
Balloon mortgages are essentially short-term loans. When you acquire a balloon mortgage, your monthly payment and interest rates are based on thirty-year loan amortization schedules. That sounds good, doesn’t it? But keep in mind that these are short-term loans; they usually cover five to seven years and on the final payment date, you’ll be required to make a balloon payment. This payment will cover the entire remaining balance of your loan.
If you can’t afford to do that then you’ll be forced to refinance your loan or lose your property.
The Right Time to Acquire a Balloon Mortgage
There are three ideal situations that would merit a balloon mortgage for your home.
Low Monthly Payments
Right now, low monthly payments are the only way you can think of in order to afford a home for you and your loved ones. If so, there’s probably no other type of mortgage that could give you lower rates than balloon mortgages. But of course, the final balloon payment is another story.
Selling Your Property
You’re happy with your current home but you also know that in five to seven years, you’ll be moving out for one reason or another and you hope to have sold your home by then. Having such plans will make a balloon mortgage is ideal. With a balloon mortgage, you don’t have to worry at present about high interest rates and high monthly payments. And when its due date comes up, you won’t have to worry either because you can then use the proceeds from selling the property to settle your loan.
Expecting Higher Income
Finally, a balloon mortgage is nothing to worry about if you expect to receive substantial income or earnings in the near future, one that’s hopefully more than adequate to settle your balloon payment.
Factors to Consider When You Refinance Your Balloon Mortgage
Now, planning is all well and good but there are times when nothing, no matter what you do, will go your way. You’ve done all you could but in the end, you realize that you can’t afford to pay off your final balloon payment. When that happens, you have only two options: refinancing or losing your property. If you choose the former, here are several important factors to consider.
Rates
Definitely, you should choose a refinance loan that offers you better rates compared to your existing loans. To qualify for such loans, however, you’ll need to prove to lenders that you’re a good credit risk.
Type
What kind of mortgage would you like to take out this time? Don’t repeat past mistakes. If a balloon mortgage didn’t work the first time around, it might not work the next time either. Take out the kind of loan you’re most comfortable with. You’ve got a lot of options to choose from so take your time weighing the pros and cons of each alternative.
Charges
Refinancing would occasionally come with hidden fees or charges so make sure you’re aware of exactly what you’ll have to pay when you refinance your balloon mortgage.
Source
Last but not the least, get a refinance loan only from trusted providers!
What Are Balloon Mortgages?
Balloon mortgages are essentially short-term loans. When you acquire a balloon mortgage, your monthly payment and interest rates are based on thirty-year loan amortization schedules. That sounds good, doesn’t it? But keep in mind that these are short-term loans; they usually cover five to seven years and on the final payment date, you’ll be required to make a balloon payment. This payment will cover the entire remaining balance of your loan.
If you can’t afford to do that then you’ll be forced to refinance your loan or lose your property.
The Right Time to Acquire a Balloon Mortgage
There are three ideal situations that would merit a balloon mortgage for your home.
Low Monthly Payments
Right now, low monthly payments are the only way you can think of in order to afford a home for you and your loved ones. If so, there’s probably no other type of mortgage that could give you lower rates than balloon mortgages. But of course, the final balloon payment is another story.
Selling Your Property
You’re happy with your current home but you also know that in five to seven years, you’ll be moving out for one reason or another and you hope to have sold your home by then. Having such plans will make a balloon mortgage is ideal. With a balloon mortgage, you don’t have to worry at present about high interest rates and high monthly payments. And when its due date comes up, you won’t have to worry either because you can then use the proceeds from selling the property to settle your loan.
Expecting Higher Income
Finally, a balloon mortgage is nothing to worry about if you expect to receive substantial income or earnings in the near future, one that’s hopefully more than adequate to settle your balloon payment.
Factors to Consider When You Refinance Your Balloon Mortgage
Now, planning is all well and good but there are times when nothing, no matter what you do, will go your way. You’ve done all you could but in the end, you realize that you can’t afford to pay off your final balloon payment. When that happens, you have only two options: refinancing or losing your property. If you choose the former, here are several important factors to consider.
Rates
Definitely, you should choose a refinance loan that offers you better rates compared to your existing loans. To qualify for such loans, however, you’ll need to prove to lenders that you’re a good credit risk.
Type
What kind of mortgage would you like to take out this time? Don’t repeat past mistakes. If a balloon mortgage didn’t work the first time around, it might not work the next time either. Take out the kind of loan you’re most comfortable with. You’ve got a lot of options to choose from so take your time weighing the pros and cons of each alternative.
Charges
Refinancing would occasionally come with hidden fees or charges so make sure you’re aware of exactly what you’ll have to pay when you refinance your balloon mortgage.
Source
Last but not the least, get a refinance loan only from trusted providers!
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