Category: mortgage

Opting for mortgage refinance is not such a bad idea after all because you stand to get a number of benefits, though at the same time these benefits will only accrue if you are able to get best mortgage refinance rates. A refinance mortgage loan will help you get a fixed mortgage refinance rate; however, if the rate is not low enough you will not get to save on your monthly payments on the mortgage.

Good Payment Record

To ensure that chances of getting lower mortgage refinance rates are bright you need to first of all have a good payment record in regard to your present mortgage lender. This is important because before sanctioning your refinance mortgage loan, the lender will first go over your creditworthiness as well as assesses the history of payments made by you to your existing mortgage lender.

The better your credit looks the brighter will be your chances of getting best mortgage refinance rates. On the other hand, a poor credit will almost certainly mean having to pay higher mortgage refinance rates.

Next, it makes sense to do some comparison shopping in regard to different refinance mortgage lenders and this can be done by getting several different mortgage refinance lenders send you their quotes. Once you have their quotes in hand you can then assess which lender is offering the best terms and mortgage refinance rates and then you can choose a package that suits you the best.

However, the key to getting best mortgage refinance rates knows how to time your refinance mortgage loan application in a way when the mortgage refinance rate is on the decline. Still, a few other factors too need to be considered such as the duration of time that you plan on living in your home; does the refinancing option represent sizeable savings? And, of course you will also need to take into account your own present credit standing and lastly, you need to have enough funds with which to pay off closing costs.

The only time when refinance mortgage loans are not a good option is when you are planning on moving in the near term or when your existing mortgage loan rate is already quite low.

These days reverse mortgages are being mentioned everywhere and so this kind of mortgage will be something that you would like to learn more about. More specifically, there are three different types of such mortgages though two (Home Equity Conversion Mortgage) and proprietary reverse mortgage are used most often and so are well worth learning more about.

Jumbo mortgages are mortgage loans that are of a larger size as compared to standard mortgage loans. Though a jumbo sized meal is often very appealing when it applies to a mortgage, there are more factors that need to be considered such as that for those people that have been looking around for a mortgage loan that is in excess of four hundred and seventeen thousand dollars, only a jumbo mortgage will provide them with that kind of money.

Loan Limits Set By Freddie Mac And Fannie Mae

In fact, a jumbo mortgage is a mortgage that is higher in value than this 417,000 dollar loan limit set out by Freddie Mac and Fannie Mae. This means that Jumbo mortgage rates are also going to be large sized and the investors that will be offering Jumbo mortgages too will be a different set of players. In fact, jumbo mortgage rates are going to be a quarter to half point more than the interest charged on conforming loans (loans that are of less value than the four hundred and seventeen thousand limit set by Fannie Mae and Freddie Mac.)

So, in case the mortgage rate for a conforming loan stands at six percent then the jumbo mortgage rate for your Jumbo mortgage loan would be anything from approximately 6.25 to 6.50 percent. Given the fact that jumbo mortgage rate are generally higher it therefore stands to reason that it would be right to assume that such mortgages are an appropriate option only to borrowers that are willing to pay a higher rate of interest.

Jumbo mortgage rates are applicable on loan limits that are in excess of the loan limit set by what is called the federal national mortgage association. So, a jumbo mortgage is ideal for a person requiring about three hundred and twenty-two thousand for purchase of a one family home. This amount of loan exceeds the limits set by Freddie Mac and Fannie Mae and is therefore only available in the form of a Jumbo mortgage loan.

Also, jumbo mortgage rate are influenced by a number of factors including the lender s view of the borrower s current credit report, current credit score as well as the borrower s work history and debt to income ratio. All these factors help mortgage lenders assess the viability of offering a mortgage loan, especially the jumbo mortgage loan that requires that the borrower has to pay a higher jumbo mortgage rate.

When it concerns home mortgage refinance rates, seldom is it possible to get rates that are as low as was applicable with the original mortgage. However, if you research your options well chances are that you should be able to get some pretty attractive deals.