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Refinancing your mortgage? - Fine, but time it right - When you refinance your mortgage with another lender, you almost always pay at least a day or two of overlapping interest on both loans. No one is cheating you; it's simply the way the system works. Lenders try to shorten the period that you pay overlapping interest. They boil their policy down to one phrase: Don't fund on Fridays. There's more to it than that, though.

"This is a relatively simple issue," says Dick Lepre, a loan officer at RPM Mortgage in San Francisco. Then he digs into a complex explanation about why you should make sure your refinancing transaction is funded early in the week and not just before a holiday.

"You have to look at it from the point of view of your old lender and your new lender," Lepre says: Both lenders are entitled to earn interest from the day they lend the money until the day they receive final payment.

In a refinancing transaction, the new lender funds the loan by wiring money to the bank of the escrow agent or attorney who is responsible for disbursing the money. As soon as the new lender sends that money, the clock starts ticking and you pay interest.

The old lender doesn't get the payoff money immediately. Some states, including 

California, have "good funds" laws that require the escrow agent to sit on the money overnight. There might be paperwork to fill out at the title company and at the county recorder's office.

And, customarily, the escrow agent pays off the old loan by sending a cashier's check by overnight courier. The courier is cheaper and less of a hassle than wiring the money.

All the while, you're paying interest on both loans.

Days upon days

In an optimistic scenario, your new lender wires the money to the bank of the escrow agent on Monday. The escrow agent FedExes a cashier's check that day to the old lender, which receives it on Tuesday and stops charging interest. You paid overlapping interest only on Monday. Add another day if your state requires the money to sit in the bank overnight.

What if your loan is funded on a Friday? Perhaps the old lender gets the check on Monday, and you have paid overlapping interest on Friday, Saturday and Sunday.

Whether those two extra days are a big deal depends upon your perspective. If you borrowed $150,000 two years ago at 8.5 percent, you're paying about $33 a day in interest.

By Holden Lewis

Here are 5 tips to consider when refinancing your mortgage.

1. Is it the right move?

When conditions are right, financially and economically, you might be considering a refinance of your mortgage. Before you jump into what seems like a good idea, it's best to know exactly what the refinancing process is, and just what it entails. You should know that when you are going to refinance, it involves starting the loan application process right from the start, as if you are buying a new home. Will you be taking the loan with a new lender, setting up a new deal, or should you shop around and see what's on offer from other loan providers? The best person to lead you through what is now a veritable minefield of lenders, is your mortgage broker. They are far more up to date with what's on offer than if you spent hours scouring the internet looking for the best deals.

2. Why Refinance?

What are your reasons for refinancing? There could be a variety of reasons. Lower interest rates on offer? A difference of a point or two in the rate may seem small when you look at it, but that couple of points can save you thousands over the years because your repayments will go on for 15 to 30 years for a typical mortgage.

Another reason some may decide to refinance is to get a shorter term, which also saves thousands of dollars. For example, things have never looked rosier personally, and both you and your partner are working, and your income is higher. So, a change in your financial situation can be used to save money on higher monthly payments. Conversely, you might be after a lower monthly payment or have that fixed rate changed to a variable rate, or vice versa.

3. Refinancing Costs

There are some obvious things to look at when considering refinancing. One of the first things is the actual cost of refinancing. Look at the fees you will be paying and divide it by the months of your mortgage and see whether there is a saving as a result of the refinancing. Sometimes you are ahead straight away, other times you might have to work out when you will hit the break-even point.

4. Penalties

Are there any penalties in your mortgage terms and conditions that apply if you pay out the mortgage early? Lenders do NOT like mortgages paid out early. Remember, when you refinance, you are paying off one loan and applying for another completely new loan. Add any penalties to your total costs for refinancing and calculate that break-even point again. Be certain that you are not losing money overall when you refinance.

5. Your Equity

An important factor in this whole process is to work out the equity you have in your home. A negative equity is when you owe more on the home than what the house is worth. If you have been in your home for a number of years, the annual increase in your home's value will stand you in good stead. But if this is a refinance taken out after only a short time into your mortgage, price fluctuations may have worked against you. If your lender is offering less than the equity, you will not be able to get the refinance, unless, of course, you have the money to pay the difference. Current markets indicate an overall rise in prices, but there have been some downward movements as well over the year and that may have had a negative effect on your home's value.

See your Mortgage Advisor

With so many variables to look at with a refinance, you can get some quick answers by putting it into the lap of your Mortgage Choice advisor who probably got you the initial loan. With up to date calculators and current interest rates available from many lenders, you can get a fast answer to any refinance query.

By Lisa S

How to Fix Your Credit to Buy a Home - You should view your credit report, before you start shopping for a home.  The last thing you want is to be turned down for a mortgage, because you have poor credit, and many sellers will ask you what your credit rating is.

A credit report is a seven year, month to month report on all your credit transactions.  Ideally, you would have made at least the minimum of every payment each month, and have low revolving balances.  

The longer you credit history, the higher your score.  Even a perfect short credit report, can have a very low score.  Lenders like to see that you don't have too many credit accounts open, and that you use your credit wisely.  

Since a mortgage is a huge amount of money, lenders are very strict with whom they borrow to.

There are things you can do to help repair your credit if you have some time before you actually apply for a mortgage.  The easiest thing to do is, stop applying for more credit accounts, including credit cards, lines of credit, and department store charge cards.  

Applying for credit, hurts your overall credit rating.  Lower your revolving debt ratio, you should not be maxing out your credit cards every month.  Show that you carry a very low balance, and that you are no where near your credit limit.  

This can be very difficult for people that are revolving on a large amounts of debt.  The best thing to do is consolidate your debt, so that you are paying less interest, and or, ask for a lower interest rate from your creditor.  Make sure that you always make your payment each month, even if its the minimum payment.

A credit report will usually include a FICO score, which is a number that rates your overall credit.  The higher the score, the better.  Scores range from 350-850, average is around 600.  

Ideally, if you want the lowest possible interest rate, you want your score around 700 or higher.  Anything lower than 600 will hurt your chances of getting approved for a mortgage.

Mortgage Refinance For Newbies - On the off chance that you have been associated with making installments on your home loan, and all of a sudden consider purchasing a fantasy first home, here is the way to do it. There are money related organizations and banks in Australia that permit contract renegotiate for first home purchasers. On the off chance that you have legitimate printed material, a smaller record as a consumer and attitude to go for home credits, contract renegotiate is especially accessible.

How it makes a difference?

Home loan renegotiating changes the course of your past obligation by combining it or transforming it into a best home advance. Since you have been faithfully paying your duty, you are qualified for be considered important. You can choose between a few choices for home advances and home loan renegotiate.

At the point when not to utilize it?

Try not to put it all on the line in the event that you have paid over 80% of your home loan contribution. In any case, in the event that you have quite recently begun or are amidst this stage, utilize the favorable position by ascertaining interests. Banks of Australia are to some degree merciful on first home purchasers and give wedding trip advances as well. In such a credit, you get the opportunity to pay least rates for beginning section in which you can enhance your money related status.

Home redesign and transaction

You can utilize your value to counter conditions set by banks for home advances. Likewise search for manners by which you can expand valuation of your home. Going for kitchen rebuilding or home overhauling is a profitable technique for guaranteeing that.

You can pick a more drawn out term credit at settled rates inside your ability in the event that you have a settled pay. Home loan renegotiate will block your past obligations and place you into one leaser: Bank that gives you home credit. You may likewise arrange whether the bank will give you advance on your value that it adjusts in its own particular installment. This will extraordinarily diminish your weight of installments.

Govt. alleviation and strategies

Consistently, there are some alleviation focuses tossed for newcomers and first home purchasers. Make utilization of these complimentary gifts tossed at you. Certain foundations offer discussion and give you specific statements of significant banks. You can make your determination among them. Some additionally have a tendency to go simple soon after the money related year closes.

Continually keeping personality that as first home purchasers, you are generally new to this universe of home advances. At a specific stage, you ay feel overpowered by the including weight of levy. Along these lines, to remain calm, you may associate your bank to your official record and let installments happen consequently. You may likewise permit a shrewd part in your family to deal with your assets. You may not be great at it.

Take advance; purchase home

Home advances ought to be taken entirely to buy homes as it were. On the off chance that you wind up loose and spend this cash on various purposes Feature Articles, you will miss on an acknowledged resource and will clearly discover your cash waste. And after that you should pay it back with interests. Along these lines astute arranging is very required as a novice.

Looking at contract renegotiate is very essential. Contract a home loan agent for the said cause.

We make it easy to get the lowest rate mortgage refinance loan.

Mortgage Refinance Made Easy-Apply in just minutes and we’ll round up the loans that are perfect for your needs. In no time at all, you can be on your way to a lower interest rate, a lower monthly payment, or switching from an adjustable rate mortgage to a fixed rate mortgage.

And as always, our mortgage refinance products are flexible to your needs:

Take three minutes to apply now. There’s no cost or obligation. Need help? 

Personal assistance is just a phone call away at 1-800-756-0789.

* For conforming loan products and qualified borrowers.

   

    These rates are backed by our Lowest Price Guarantee    

  Product                     Rate           APR            P&I Payment

Option ARM              1.250%      1.349%       $1,500.00

1 Month ARM           2.000%       2.137%      $739.00

3/1 Libor ARM          3.625%       3.781%      $912.00

15 Year Fixed            5.000%       5.301%       $1,582.00

30 Year Fixed            5.375%       5.555%       $1,120.00

30 Yr Fixed Jumbo   5.875%       6.023%       $2,662.00