Texas mortgage brokers can offer you the best advice about refinancing your home loan and what offers are available for low-interest Texas home equity loans. Interest rates are in decline right now, and this makes it a good time to think about a refinance, as well as picking up a home equity loan.
Texas home loans can be available in both fixed-rate and adjustable-rate loan instruments. Fixed-rate Texas home loans make for a regular payment amount due each month, making it easier to budget for the payment. Adjustable mortgages, or ARMs, offer the benefit of a small interest payment for the grace period of the loan, after which it adjusts according the current interest rate. For a short-term loan for a home that you plan on selling in five years or less, this could be a good option for you.
You might decide to look into Texas home equity loans if you need money for a special project or to pay off larger bills. This is a type of loan that is also called a second mortgage. You can take a loan out on the amount of equity you have built up in the home, and this is the basis of Texas home equity loans. The money can be used for any purpose.
Because interest rates are currently quite low, many home owners are refinancing their Texas home loans. What happens is that if the interest rate has dropped since the time you first took out your mortgage, you can save money by refinancing your loan to take advantage of the lower interest rate. At the time of refinancing, many Texas mortgage brokers can recommend a home equity loan that would work for you, and by performing both transactions at the same time, you will often save money in finance charges and fees.
Texas mortgage brokers can provide you with a wide variety of loans so that you can examine each one in detail. The brokers can answer all of your questions, and even, based on your credit score and financing, offer recommendations as to which loans may work best for your financial situation and long-term financial goals and needs. Texas mortgage brokers can give you different term lengths of loans, and can do the amortization and math so that you can compare each offer side-by-side and determine the one most suitable for you and your family’s future.
By: Anne Harvester
Posts Tagged ‘Adjustable Rate Loan’
Refinancing Home Loans and Home Equity Loans Can Save You Money
February 17th, 2010Cash Out Refinance Loans At 16-Year High
February 9th, 2010
Homeowners continue to prefer cash out refinance loans to other forms of borrowing. Frank Nothaft, Freddie Mac vice president and chief economist, says,
“Mortgage borrowers continue to refinance their mortgages at a higher frequency than historically would have occurred given the rise in mortgage rates over this year. But the wide proliferation of adjustable-rate mortgages (ARMs) originated in the past few years that are nearing their first interest-rate adjustment provides borrowers an incentive to refinance into a lower-cost ARM or fixed-rate mortgage. In addition, borrowers who might have considered a prime rate home equity loan for a home improvement or other need are turning to cash out refinance options now that the prime rate is above 8 percent.”
Beyond just converting an adjustable-rate loan to a fixed-rate loan, borrowers are also cashing out their equity. Almost 90 percent of Freddie Mac refinance loans are for amounts at least 5 percent higher than the original mortgage. The most recent Cash Out Refinance Report from the mortgage giant shows that homes refinanced during the third quarter of 2006 had experienced a median price appreciation of 33 percent since the original loan was made. The median age of the original loan was 3.4 years.
It is this accrued equity that homeowners are tapping into to pay off high-interest credit cards, to fund home improvement projects, or to finance their children’s college education. An added benefit is that interest paid on a mortgage is tax deductible (usually up to $100,000 for taxpayers filing jointly).
Since a cash out refinance loan results in a new mortgage, it incurs closing costs, filing and legal fees, and other expenses that can add up to thousands of dollars. This makes refinancing unwise for people planning to move in the next few years as they will not have time to recoup their refinancing costs.
Bad Credit Refinancing
For borrowers with less than perfect credit, a refinance loan is the smartest way to get needed cash. Bad credit usually means a FICO score below 620. This FICO number reflects credit-worthiness based on borrowing habits, payment history and other financial factors. Creditors use it when deciding whether to make a loan and what interest rate to charge. The lower the credit score, the higher the risk for the lender. But since a refinance loan is secured by real property, the risk is minimized and the interest rate is better.
According to Steven Frank, Senior Vice President at FlexPoint Funding,
“A ‘subprime’ borrower can expect to pay between 1.5 percent and 2 percent higher interest for a mortgage, but there is no shortage of money in the subprime loan market. Most subprime borrowers won’t qualify for a second mortgage or a home equity line of credit. They will have to refinance their first mortgage if they want to cash out some of their equity. Depending on their personal situation, a homeowner may be able to borrow up to 95 percent LTV (loan to value). More likely, it will be in the 80 percent range.”
You can learn more about bad credit refinancing and get a free loan quote at sites like Simple Mortgage Refinancing [http://www.simple-mortgage-refinancing.com] and Bad Credit Mortgage Refinancing Now.
By: Mike Hamel
Colorado Home Mortgage Refinance Loans
December 19th, 2009
Who among us would not enjoy saving a few hundred dollars every month on our mortgage payments? Sure, the savings vary according to the terms of your loan, but even a one percent difference in interest rates can make a significant difference in your monthly payments. Now can be a great time to track down the best rates on Colorado home mortgage refinance loans from some of the top lenders in the country.
You have probably seen television commercials for mortgage refinance loans or pop-up ads online for these loans, and wondered if they delivered everything they promised. With the real estate market a mess, lenders are working harder than ever to earn your business. With interest rates still low, finding a reputable lender with a low cost mortgage refinance loan can take no time at all.
Lock in a Fixed Rate with Colorado Home Mortgage Refinance Loans
Many people shop around for Colorado home mortgage refinance loans because they want to switch from an adjustable rate loan to a fixed rate loan. A fixed rate loan allows you to lock in a low interest rates for the length of your loan. Rather than gambling on the stability of the real estate market for the next 30 years, many people take comfort in knowing their monthly payments will remain the same.
If you need cash for any number of different reasons, Colorado home mortgage refinance loans are often a more affordable resource than taking out another line of credit or a consumer loan. The equity in your home can be a great resource when you need cash for home improvements and other investment opportunities.
By: Kevin Benner