|The Mortgage Process|
- Which Mortgage?
- Locking Down Your Rates
- Applying Online
- I applied, now what?
|Types of Mortgage|
- Home Equity
- Debt Consolidation
- New Home Purchase
- monthly payment
- tax deduction
- total cost of loan
- points vs no points
Mortgage Central wants to make sure you are cofortable with the loan process. Our network of mortgage companies will take time to explain to you the process of getting a mortgage or refinancing.
A consultation with DARLENA will help you determine your personal homebuying goals, decide on a product that best suits your current and long term goals, evaluate amortization effects and how to reduce your mortgage term, decide what makes the most sense to you, and discuss any detail that effects your situation such as tax benefits, discount points, initial investment, closing costs, credit reports and more.
THE RIGHT CHOICE
Let DARLENA help get the loan that is right for you. She taylors her approach to fit your specific situation and will listen to your needs and individual requirements.
refinance mortgageIn the last few years, there has been a boom in refinacing, as people try to take advantage of lower interest rates to refinanced their homes. A refinance simply means you are paying off your original loan and getting a new loan at a much lower interest rate. This means you will have to still pay the same closing cost and fees unless you are able to work out a deal with your broker or lender.
This website will help to inform you about all the parts of refinacing a home.
As mentioned above, refinacing is taking out a new mortgage to pay off an unpaid mortgage loan. It does not mean to change your current mortgage. Some people get confused about think that by refinacing, the amount of years left on their current mortgage will stay the same. This is not true.
Remember all that paperwork for your first mortgage? Refinacing a home involves most of the same steps and fees that you went through to get your first home loan.
So what's the point of refinancing?
To save money of course! If your interest rate is at least 2 percent higher than the current interest rate, it might not be a bad idea to refinance and save some money off your monthly payment. Your new mortgage will still be for the same amount as your original mortgage. Your savings comes in the lower interest rate.
So why don't we refinance right away when the current interest rate is lower by 1 percent?
This is basically when you refinance, you have to factor in all the closing costs and fees that a mortgage lender will charge. Some mortgage lenders have advertised "no-cost" and low-cost refinacing packages that help reduce or eliminate any expenses of refinacing.
There are a few other factors to think about when refinacing a home. If you don't plan to stay in your home for too long, the savings will not really pan out to be any savings due to the refinancing cost.
How to Decide?
Take a look at some of the reasons below why you should refinance. Talking to a mortgage lender is also a good idea. They are qualified to help make a decision. Try talking to at least a few brokers as some of them might presure you into refinancing so they can collect on commission.
When Does Refinancing Make Sense?
This page won't be able to cover all the grounds as to when refinancing a home is a good idea, but will list some of the more common reasons why people should think about refinancing.
1. Convert an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.
2. Lower interest rate resulting in saving money
This is the most common reason why people refinance their home. If your first mortgage has a much higher interest rate then the current interest rates, refinancing does make sense. By taking out a new mortgage at a lower rate, you will lower your monthly payments. If you don't plan on living in the same place for more than a few years, then the cost of refinancing will not end up saving you any money because of all the refinancing cost and fees.
The general real is to refinance when there is a difference of at least 2 percent between your first interest rate and the current interest rate to cover refinancing costs. Some lenders today are offering lower fees, so some people might be able to get away with refinancing when the difference in interest rate is around 1.5 percent. If you have an adjustable rate mortgage because of its lower initial interest rate and see that the current interst rate is low, refinancing to a fixed-rate mortgage will give you a more steady monthly payment.
3. Convert an adjustable-rate mortgage (ARM) to an ARM with more desirable features or lower rates.
A lot of adjustable-rate mortgages have protective features that limit the amount the interest rate or monthly payment can increase. This is called caps. Sometimes the current market will have a more attractive adjustable rate mortgage with a lower cap that will ease how much you might have to pay, resulting in savings.
4. Convert some of your equity to cash.
5. Build up your equity faster.
If you have more money since the first time you took out a mortgage, you may think about getting a short term mortgage so that you can own the home before you get too old. The monthly payment will likely be more, but your long term savings in paying less interest along with a lower interest rate will result in a well worth savings in some cases.
Locate Boston mortgage companies by consumer reviews. If you took out your mortgage some time ago, you will have begun to reduce the outstanding principal on your home loan. That means you’ll be able to finance a much larger amount than you owe on your current home mortgage loan. You can use the difference in savings, which can be tens of thousands of dollars for major purchases, or to finance college costs for your kids.
If you think you would like to refinance your home, fill out the form below and we will have a mortgage lender get in touch with you.
which mortgage is right for me?
Choosing the right mortgage is a difficult choice. Should you go with a fixed rate or an adjustable rate? Is a 15 year or a 30 year mortgage better for me? If you already have a home, is a refinance cashout or a home equity loan better? How about a debt consolidation loan? What is a jumbo loan?
We hope to answer some or all of those questions for you in words that you can understand. If you are from Missouri or Arkansas, please visit Missouri Mortgage Companies or Arkansas Mortgage Companies.
Interest Rates (Fixed vs Adjustable)
First, a fixed rate mortgage is a mortgage where the interest rate stays the same over the life of the mortgage. Going with a fixed mortgage is ideal in an economy where the rates are low such as right now. Adjustable interest rates are more ideal in an economy where the interest rate is higher and can potentially go down in the near future.
Length of Mortgage (15 years vs 30 years)
To keep it simple, the longer the length of your mortgage, the more money you spend on the loan. Even though the monthly payment for a 30 year mortgage is lower than a 15 year mortgage, by the end of the 30 years, you will have paid almost twice as much for the house than if you would have with a 15 year mortgage.
Buying a Home
There are a number of different types of mortgages for first time home buyers. With the increasing price of homes, there are also federal assisted loans that help lower income families afford to pay for a house. Some of these special first time home buying programs are supported by the following companies:
- Fannie Mae : This is a government chartered company that help middle income families become homeowners. The Fannie Mae mortgage requires a 3 percent down payment on either a 25 year or 30 year fixed mortgage. Anyone instead in borrowing are required to take a home buyer education class to qualify for the Fannie Mae mortgage.
- Federal Housing Administration : The FHA is a government agency of the Department of Housing and Urban Development. They insure residential mortgage loans that are made by private lenders. The FHA insurance allows you to buy a home with a very low down payment of 3-5 percent of the lower of the appraised value or the home sales price.
- Veterans Administration : This administration guarantees any veterans that qualify to buy a house up to $203,000 with zero down payment. Of course these days, it is rather difficult to find a home near $200,000; at least in California. If you need more information, check out your state's VA website.
- Rural Housing Service : This government agency is apart of the Department of Agriculture who help provide loans to qualified borrowers who are interested in buying property in rural areas. This program is intended for low to middle income families living in rural areas and small towns. They offer low interest rate loans with little or no down payment on the property.
- State and local government programs : With the rising cost of homes, a lot of state and local housing agencies have sponsored programs to assist qualified first-time home buyers. The programs offer mortgages with low down payments as well as low interest rates. Try checking with your local state or local housing agency. Stop Foreclosure
- Reverse Mortgage: For seniors who are interested in staying in their homes, reverse mortgages companies is a great site to shop for trusted lenders. Or for Canadian residents, visit reversemortgagelenders.ca
What is a Jumbo Loan? :
A jumbo loan in 2004 is any loan amount $333,700 or more. Jumbo loans require you to put down a higher down payment and pay a higher interest rate.
Mortgage Rates By States
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia