Homeowners in Alabama have been benefiting from the steady increase in Alabama home values. A recent study released by the University of Alabama reports that home values are increasing an average of 2.6 percent annually. When you take this information into account, and add the benefit of currently low interest rates, there has never been a better time to refinance you Alabama home loan.
Still, if you want to make your Alabama refinance worthwhile, you’ll need to find the best refinance rates possible. Here are a few tips that will help:
Shop Around
Although you hear this simple refinance tip all the time, it is surprising how many people accept the first loan offer that comes their way. You should always shop around to see who can offer you the best deal. The market is competitive and there will be plenty of lenders willing to handle your Alabama refinance loan. If you can save just a little bit on your interest rate, shopping around is well worth the time and effort.
Look for Low Introductory Offers
If you plan on refinancing to an adjustable rate mortgage or a hybrid mortgage, look for special introductory offers. Many lenders who handle Alabama refinances offer abnormally low interest rates that can be in effect for up to the first five to ten years of your mortgage loan.
Prepare for the Refinance
If you are even thinking about applying for an Alabama refinance loan, there are several things you can do to increase your chances of getting a low interest rate. First, pull a copy of your credit report and do what you can to repair any blemishes that appear on it. Next, start saving your money. There will be closing costs associated with your Alabama refinance. Not having to finance these closing costs will get you a lower rate and save you money in the long run.
By: Jane Hale
Posts Tagged ‘Money’
Alabama Refinance Loans – Finding the Best Refinance Rates
March 1st, 2010Car Loan Refinancing – When To Refinance Your Car Loan
February 15th, 2010
Want to save money? Lower your monthly payment? Then refinance your old car loan. Trade in your high interest rate loan for a lower rate, especially if your credit score has improved. You can also lower your payments by extending your loan terms, helping your cash flow.
Trading In High Rates
When rates drop, refinancing makes sense for both mortgage and car loans. Factor in the length of the car loan though when deciding whether to refinance. If you only have a year left on loan payments, then it won’t save you money to refinance since you have paid most of the interest up front.
You can also reduce your interest costs by refinancing for a shorter term. Reducing your loan by two years can easily shave over a thousands dollars off your interest charges, even with the same rate. Once again, you need to look at how long you have left on your original car loan to be sure you can save money.
Better Score, Better Rates
If you have improved your credit score since you first secured your car loan, you may find savings in better rates. So even if rates haven’t dropped for the general market, you may still qualify for better rates.
Besides making regular, on-time payments, you can improve your score by reducing your debt ratio. Your score also improves when none of your accounts are maxed out.
Lower Payment, Longer Term
Reduced rates aren’t the only reason to refinance. By rolling over to a longer term, you can reduce your monthly payment. Just remember that in the long run, you will be paying more for your car loan. However, when finances are tight, this option can keep you from defaulting on your loan or other bills.
Before jumping into a refinancing deal, be sure to investigate financing companies. Compare their APR, ask for free quotes, and read the fine print. Also check with your original lender to be sure there are no early payment fees. The best refinanced car loans are the ones where you save money. Taking the time to research financing offers will ensure that you find just such a deal.
By: Carrie Reeder
Oregon Refinance Loans – The Rules of Refinancing
February 9th, 2010
Getting an Oregon refinance loan isn’t as simple as it used to be. Borrowers have way more options to choose from than they ever used to. This can make the entire refinancing process seem overwhelming. If you need a little guidance, here are a few refinancing rules that you’ll want to follow to the letter.
Borrowing Rules
Regardless of the lender you choose, you will probably be asked whether or not you want to borrow any additional money when you apply for your Oregon refinance loan. As tempting as cash out refinancing can be, it is important to remember that you will be responsible for paying back whatever you borrow. The rule you want to stick to is: never borrow more than you can afford.
The Twenty Percent Rule
The old rule that says you should have 20 percent down on your loan seems old fashioned these days, but it is actually very good advice that can apply to both new mortgages and refinances. If you don’t have at least 20 percent equity in your house, you will be required to pay private mortgage insurance (PMI). PMI can be costly and is a serious waste of your money. Keep this in mind when you decide you want to roll in closing costs or get cash back at closing.
Closing Cost Rules
Closing costs on Oregon refinance loans average $3,137. This is slightly higher than the national average and can make a serious dent in your savings, not to mention the overall cost of your refinance loan. To cut costs, you may want to try using some of the same documentation that was used during your first loan, especially if you are refinancing within a few years of your original closing. You can also try to negotiate with the lender who will be handling your Oregon refinance loan. Some lenders will be willing to waive certain fees.
By: Jane A. Hale