Mortgage
Rates for Refinancing
(and
staple guns)
FACT: Mortgage
rates for refinancing are similar to those for first time
buyers. Mortgage rates for refinancing are usually fixed
rate mortgages or adjustable rate mortgages (or some variation
there of). There are many sources on the Internet one can
turn to for daily and weekly statistics for mortgage rates
in order to calculate refinancing needs. Also, in order
to check out mortgage rates for refinancing, many websites
will offer free mortgage rate calculators.
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When checking the
mortgage rates for refinancing it is also important to take into
account the fees of refinancing. These can include settlement
costs, discount points and perhaps even a penalty for paying off
your original loan early. The total expense for refinancing a
mortgage depends on the interest rate, number of points, and other
costs required to obtain a loan. To obtain the lowest rate offered,
most mortgage companies will charge several points, and the total
cost can run between three and six percent of the total amount
you borrow. Some loan companies, however, may charge you zero
points but at a higher interest rate. Comparing total costs and
the bottom line of each refinancing plan will help you in making
a sound decision.
Most people rely on
credit when buying or refinancing a home. To qualify for a refinance
mortgage loan with good terms, you'll need to have an adequate credit
score. A credit score is also known as FICO, a three-digit system
created by Fair Isaac and Co. A FICO measures the probability of
an individual paying back the money they have borrowed. Being aware
of where your FICO stands and finding ways to improve it is saves
you money. A 30-year loan for $200,000 can save you over $100,000
if you have a good credit score as opposed to a bad one. Most people
think it's preferable that the thousands of dollars goes into their
pockets instead of that of their mortgage lender.
Some lenders will also
offer a free credit report to potential customers as a method
of persuasion to do business with them. The major credit
reporting agencies are Experian, Equifax and TransUnion.
By cleaning up your credit report first, including any errors
on these reports, you'll go a long way in lowering your
mortgage rates for refinancing. The bottom line is that
with a little planning and work, your bottom line can look
thousands of dollars richer.
Fiction:
If you've already read this far, then you are a better person
than I am. I find reading about mortgage rates for refinancing
literally so boring I would rather give myself a rectal
exam with a staple gun then keep on reading about it. But,
since you are obviously into this then staple away, my friend.
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