By John Preest
Do you intend to acquire a new house or refinance your existing unit? If you do, you have to check the best mortgage deals available. Finding the best deals means getting your money's worth and securing your financial position not only in the short run but also in the long run.
Initially, you may have the notion that locating the best mortgage deals is a challenging task. However, this is not the actual case if you make an effort to learn and scout available deals properly. The mortgage industry is a highly competitive industry especially at this stage. Thus in a competitive market where the name of the game is survival of the fittest, you expect best deals to surface.
Educating yourself implies gaining a good leverage. If you are well informed about the mortgage industry you get a better grasp on good products and current rate offers. Your good understanding of the mortgage jargon alone can help you communicate effectively with lenders and brokers, the primary participants in closing the best mortgage offer.
Finding the best deals is important. Having an array of options is better. Knowing the right way to shop around though is even more important. You must know where to locate good sources of information effectively and efficiently. You can definitely find a long list of mortgage deals online and even offline by merely doing ordinary search tasks. But this long list may not serve its purpose if you fail to quickly arrive at an authentic list and translate the same into relevant information as guide in decision making.
Some mortgage deals are simply enticing but usually they have strings attached. You can avoid choosing the wrong deal if you are properly informed and if you shop around smartly. Having a financial advisor can help you stay informed and can guide you in scouting for the best mortgage deals available. Note that time element is also of the essence in looking for mortgage offers.
For all the latest [http://www.jp-financial.co.uk/remortgage]remortgage deals and information, speak to a mortgage advisor at J P Financial. The website has related information on [http://www.jp-financial.co.uk/]best mortgage deals and much more.
Tuesday 29 June 2010
Sunday 27 June 2010
Loan Modifications May Include 40 Year Mortgages
There are several ways that homeowners can petition the bank for loan modifications and one of the least common but most effective are loan modifications through 40 year mortgages. Adding ten years to the amortization period helps the borrower by reducing their monthly payment substantially because the longer period of time to pay off the loan means more installment payments than the typical 30 year mortgage. For new borrowers 40 year mortgages can mean the difference between qualifying for a loan or being declined by the lender.
Most borrowers do not realize that only a small portion of their monthly payment on an amortized (principal and interest) loan goes towards principal. For instance on a monthly payment of $2600, only about $400 will go towards principal reduction during the first ten years of the loan term, the rest goes towards interest. This signifies that over the course of a 30 or 40 year term, the amount of interest paid can easily be equal to twice or three times what original principal balance was at the time of loan origination.
40 year mortgages can be paid off sooner and most responsible and caring loan officers will advise their clients to make one extra payment each year in order to reduce the principal. For instance, if your loan payment is due once a month, you can request the bank to schedule your automatic withdrawal for the mortgage payment every four weeks as opposed to once a month. At the end of the year this will add one extra payment to your loan term and that payment will be one hundred percent payable towards principal balance reduction and not towards interest.
When a bank negotiator approves loan modifications for clients, one of the methods that can be utilized are 40 year mortgages. Another is straight interest rate reduction and yet another is principal balance reduction. Many banks will do a combination of these in order to satisfy the investor who holds the note and give financial relief to the beleaguered borrower who may find himself owing more to the bank than the home or property is worth.
The point of a successful loan modification is to relieve the financial hardship on today’s homeowners who are regularly besotted with a plethora of ever widening financial difficulties. Over the last few years mortgage bankers have seen a sharp rise in the number of foreclosures in the private sector. People are losing their homes on a massive scale never before seen in the U.S. 40 year mortgages can help to alleviate these financial woes before they result in losing the property to the bank.
Most borrowers do not realize that only a small portion of their monthly payment on an amortized (principal and interest) loan goes towards principal. For instance on a monthly payment of $2600, only about $400 will go towards principal reduction during the first ten years of the loan term, the rest goes towards interest. This signifies that over the course of a 30 or 40 year term, the amount of interest paid can easily be equal to twice or three times what original principal balance was at the time of loan origination.
40 year mortgages can be paid off sooner and most responsible and caring loan officers will advise their clients to make one extra payment each year in order to reduce the principal. For instance, if your loan payment is due once a month, you can request the bank to schedule your automatic withdrawal for the mortgage payment every four weeks as opposed to once a month. At the end of the year this will add one extra payment to your loan term and that payment will be one hundred percent payable towards principal balance reduction and not towards interest.
When a bank negotiator approves loan modifications for clients, one of the methods that can be utilized are 40 year mortgages. Another is straight interest rate reduction and yet another is principal balance reduction. Many banks will do a combination of these in order to satisfy the investor who holds the note and give financial relief to the beleaguered borrower who may find himself owing more to the bank than the home or property is worth.
The point of a successful loan modification is to relieve the financial hardship on today’s homeowners who are regularly besotted with a plethora of ever widening financial difficulties. Over the last few years mortgage bankers have seen a sharp rise in the number of foreclosures in the private sector. People are losing their homes on a massive scale never before seen in the U.S. 40 year mortgages can help to alleviate these financial woes before they result in losing the property to the bank.
Sunday 6 June 2010
Where are the Best Mortgage Deals in Today’s Economy?
Author: Aubrey Clark
Many people believe that the best mortgage deals are no longer available for the average consumer that is shopping for a mortgage in today’s economy. That may be true if you cannot prove your income or have had a bankruptcy in the last two years. However, if you are the average Joe with a few dings on your credit, and are looking to buy a new home, the best deals are still out there.
The truth is, they have always been there. The Federal Housing Administration (FHA) has been helping the average consumer get great deals on mortgages since the 1950’s.
FHA mortgages fell out of popularity in the late 80’s and early 90’s because of the flood of new non-conforming mortgages that hit the market at that time.
FHA mortgages are backed by the US Government, which means, they have forms on top of forms that tell you about the previous form that you have already signed. The new non-conforming were easier to qualify for and didn’t have mortgage insurance (PMI).
This meant that the new non-conforming loans could offer a lower payment while actually charging higher rates.
Everyone won; the mortgage company made money, the investors made money and the consumer received a 2 year ARM and an easy approval. It was like Wall Street in the early 20’s all over again. Fat cats and paper millionaires were created overnight and corruption reigned. Today’s mortgage crisis parallels that era and the consumers, once again, are picking up the tab.
Now, the once forgotten FHA mortgage is back in vogue. In fact, FHA is almost the only place the “average Joe” with a few credit dings can still get a great deal on a home loan. Most people don’t know that you can get approved, and get the best interest, rates with ANY credit score using FHA. This is because FHA is a common sense mortgage that is primarily underwritten by real underwriters, not fancy processors who run loans through a computer.
The reason the borrower’s credit score is irrelevant to FHA, is because they measure the customer’s ability and probability of paying back the mortgage. On top of that, FHA doesn’t grade interest rates on a sliding scale that worsens your interest rate for lower credit scores and higher risks. With FHA you will either get the best rates they offer or not get the loan at all. Getting approved for an FHA loan can be tricky if you have current credit issues or some from the past. Knowing how to prepare is the key.
Like I mentioned earlier, FHA is a common sense loan, they basically want to put good people into good houses. The first thing that will be scrutinized is the collateral, or the home you want to buy. If you are trying to buy a “foreclosure” or a fixer-upper with shaky credit, you will probably be denied. The FHA underwriter’s job is to put borrowers into the best position to succeed and homes that have issues aren’t a good risk. The next thing an underwriter is going to measure is your capacity to repay the mortgage, namely your debt to income ratio. If this ratio is “out of whack” the loan stops there.
Your housing payment, as of this writing, must be below 33% of your gross income. Your total debt must be below 44%.There are some extenuating factors that can override those ratios, but they have to be solid proof of additional income or the promise of. The next factor that FHA requires is that your mortgage does not exceed 97% of the home’s value, 95% if you are taking cashing out equity. If you are purchasing a home, you will need to put 3% down.
When an underwriter looks at your credit report they aren’t concerned with your credit score, what they are looking for is how well you have maintained your recent credit compared to your past credit. Prior credit issues can be forgiven, especially medical bills, if you have demonstrated good credit management in the last year.
You can even have current open collections on your bureau if you have a repayment agreement and have been making regular payments for a year. Last but definitely not the least deciding factor in an FHA mortgage that can help/hurt your application is your current mortgage or rental history. If you have been late on your mortgage in the last year, you will need a very good excuse to move forward.
However, FHA has recently added some specific programs that are aimed to help consumers who are having or have had mortgage payment problems. This is part of an effort to help those borrowers who were put into bad mortgages that are now adjusting. Be sure to ask your loan officer if you qualify for the new Government sponsored programs, who knows, you just may be able to get your best mortgage deal regardless of your mortgage history.
Article Source: http://www.articlesbase.com/personal-finance-articles/where-are-the-best-mortgage-deals-in-todays-economy-451216.html
About the AuthorAubrey Clark is a writer and editor for Directbanc.com, a directory of low interest rate credit cards. He is also a staff writer for LendFast.com helping people get the best mortgage deals since 1999 with unbiased mortgage information and tutorials. Aubrey lives in Atlanta, Georgia with his wife and four children.
Many people believe that the best mortgage deals are no longer available for the average consumer that is shopping for a mortgage in today’s economy. That may be true if you cannot prove your income or have had a bankruptcy in the last two years. However, if you are the average Joe with a few dings on your credit, and are looking to buy a new home, the best deals are still out there.
The truth is, they have always been there. The Federal Housing Administration (FHA) has been helping the average consumer get great deals on mortgages since the 1950’s.
FHA mortgages fell out of popularity in the late 80’s and early 90’s because of the flood of new non-conforming mortgages that hit the market at that time.
FHA mortgages are backed by the US Government, which means, they have forms on top of forms that tell you about the previous form that you have already signed. The new non-conforming were easier to qualify for and didn’t have mortgage insurance (PMI).
This meant that the new non-conforming loans could offer a lower payment while actually charging higher rates.
Everyone won; the mortgage company made money, the investors made money and the consumer received a 2 year ARM and an easy approval. It was like Wall Street in the early 20’s all over again. Fat cats and paper millionaires were created overnight and corruption reigned. Today’s mortgage crisis parallels that era and the consumers, once again, are picking up the tab.
Now, the once forgotten FHA mortgage is back in vogue. In fact, FHA is almost the only place the “average Joe” with a few credit dings can still get a great deal on a home loan. Most people don’t know that you can get approved, and get the best interest, rates with ANY credit score using FHA. This is because FHA is a common sense mortgage that is primarily underwritten by real underwriters, not fancy processors who run loans through a computer.
The reason the borrower’s credit score is irrelevant to FHA, is because they measure the customer’s ability and probability of paying back the mortgage. On top of that, FHA doesn’t grade interest rates on a sliding scale that worsens your interest rate for lower credit scores and higher risks. With FHA you will either get the best rates they offer or not get the loan at all. Getting approved for an FHA loan can be tricky if you have current credit issues or some from the past. Knowing how to prepare is the key.
Like I mentioned earlier, FHA is a common sense loan, they basically want to put good people into good houses. The first thing that will be scrutinized is the collateral, or the home you want to buy. If you are trying to buy a “foreclosure” or a fixer-upper with shaky credit, you will probably be denied. The FHA underwriter’s job is to put borrowers into the best position to succeed and homes that have issues aren’t a good risk. The next thing an underwriter is going to measure is your capacity to repay the mortgage, namely your debt to income ratio. If this ratio is “out of whack” the loan stops there.
Your housing payment, as of this writing, must be below 33% of your gross income. Your total debt must be below 44%.There are some extenuating factors that can override those ratios, but they have to be solid proof of additional income or the promise of. The next factor that FHA requires is that your mortgage does not exceed 97% of the home’s value, 95% if you are taking cashing out equity. If you are purchasing a home, you will need to put 3% down.
When an underwriter looks at your credit report they aren’t concerned with your credit score, what they are looking for is how well you have maintained your recent credit compared to your past credit. Prior credit issues can be forgiven, especially medical bills, if you have demonstrated good credit management in the last year.
You can even have current open collections on your bureau if you have a repayment agreement and have been making regular payments for a year. Last but definitely not the least deciding factor in an FHA mortgage that can help/hurt your application is your current mortgage or rental history. If you have been late on your mortgage in the last year, you will need a very good excuse to move forward.
However, FHA has recently added some specific programs that are aimed to help consumers who are having or have had mortgage payment problems. This is part of an effort to help those borrowers who were put into bad mortgages that are now adjusting. Be sure to ask your loan officer if you qualify for the new Government sponsored programs, who knows, you just may be able to get your best mortgage deal regardless of your mortgage history.
Article Source: http://www.articlesbase.com/personal-finance-articles/where-are-the-best-mortgage-deals-in-todays-economy-451216.html
About the AuthorAubrey Clark is a writer and editor for Directbanc.com, a directory of low interest rate credit cards. He is also a staff writer for LendFast.com helping people get the best mortgage deals since 1999 with unbiased mortgage information and tutorials. Aubrey lives in Atlanta, Georgia with his wife and four children.
Saturday 5 June 2010
The Best Mortgage Deal is not Necessarily the Best Known Brand
Author: Nick Riviera
When you look around for a mortgage deal you’re probably looking for the best deal you can find. The problem is finding the best mortgage deal to suit you.
News on mortgages has recently suggested that there has been a reduction in the number of mortgages available on the market, but with over 8,000 to choose from you’d be hard-pressed to notice the difference. How can you choose the best mortgage deal to suit you?
Your circumstances will be particular to you. You may have a healthy income; you may have a low income; you may have income earned from different sources; you may have an impaired credit rating; you may be a first-time buyer; you may be newly divorced; you may have low income but have inherited some money. There are probably more than 8,000 different scenarios! Finding the best mortgage deal is difficult.
What is interesting to note is the results of a survey showed that Building Societies offer 70% of the top 250 best mortgage deals on the market today. It suggests that you would be better off going to a building society for a mortgage than to a high street bank.
It is interesting to see that the top mortgage lenders didn’t come out very well in the survey. Top lender HBOS did not have any products in the top 250. The Royal Bank of Scotland fared best of the top names, with six products from its group in the top 250.
If the top lender has no products in the top 250 mortgages, how is it still the top lender? There is a huge amount of information available to the public – especially with the internet at most people’s finger tips – and financial and mortgage advisors abound, yet still well-known high street brands are getting most mortgage customers to sign up with them.
The best know providers may be able to often the best solution to some people, but according to the survey, by Moneyfacts, the majority of borrowers would be better off looking at smaller lenders and building societies for the best mortgage deals.
For most people getting a mortgage will be the biggest financial transaction they will ever make. It is not really wise to base a decision like that on a brand name or the fact that you walk through the doors on your local high street. Getting a mortgage should be about getting the best mortgage deal to suit your own personal circumstances.
There are so many facilities around now to help you find the best mortgage deals, such as the internet, and mortgage advisors and mortgage brokers, who have access to the whole of the market, and are not tied in tow a single brand.
Make use of the internet to do some groundwork, and understand more about the mortgage market. Then use a mortgage broker, who will almost certainly be able to find a mortgage that suits your individual needs, and is the best mortgage for you – not for the bank!
Article Source: http://www.articlesbase.com/mortgage-articles/the-best-mortgage-deal-is-not-necessarily-the-best-known-brand-286732.html
About the AuthorAn author on a variety of property related subjects, which include mortgage rate reviews and detailed analysis of the role mortgage brokers provide in the current climate.
When you look around for a mortgage deal you’re probably looking for the best deal you can find. The problem is finding the best mortgage deal to suit you.
News on mortgages has recently suggested that there has been a reduction in the number of mortgages available on the market, but with over 8,000 to choose from you’d be hard-pressed to notice the difference. How can you choose the best mortgage deal to suit you?
Your circumstances will be particular to you. You may have a healthy income; you may have a low income; you may have income earned from different sources; you may have an impaired credit rating; you may be a first-time buyer; you may be newly divorced; you may have low income but have inherited some money. There are probably more than 8,000 different scenarios! Finding the best mortgage deal is difficult.
What is interesting to note is the results of a survey showed that Building Societies offer 70% of the top 250 best mortgage deals on the market today. It suggests that you would be better off going to a building society for a mortgage than to a high street bank.
It is interesting to see that the top mortgage lenders didn’t come out very well in the survey. Top lender HBOS did not have any products in the top 250. The Royal Bank of Scotland fared best of the top names, with six products from its group in the top 250.
If the top lender has no products in the top 250 mortgages, how is it still the top lender? There is a huge amount of information available to the public – especially with the internet at most people’s finger tips – and financial and mortgage advisors abound, yet still well-known high street brands are getting most mortgage customers to sign up with them.
The best know providers may be able to often the best solution to some people, but according to the survey, by Moneyfacts, the majority of borrowers would be better off looking at smaller lenders and building societies for the best mortgage deals.
For most people getting a mortgage will be the biggest financial transaction they will ever make. It is not really wise to base a decision like that on a brand name or the fact that you walk through the doors on your local high street. Getting a mortgage should be about getting the best mortgage deal to suit your own personal circumstances.
There are so many facilities around now to help you find the best mortgage deals, such as the internet, and mortgage advisors and mortgage brokers, who have access to the whole of the market, and are not tied in tow a single brand.
Make use of the internet to do some groundwork, and understand more about the mortgage market. Then use a mortgage broker, who will almost certainly be able to find a mortgage that suits your individual needs, and is the best mortgage for you – not for the bank!
Article Source: http://www.articlesbase.com/mortgage-articles/the-best-mortgage-deal-is-not-necessarily-the-best-known-brand-286732.html
About the AuthorAn author on a variety of property related subjects, which include mortgage rate reviews and detailed analysis of the role mortgage brokers provide in the current climate.
What You Should Find Out About Your Lenders Best Mortgage Deals
Author: KJ Ross
The best mortgage deals are those that fit in best with your current financial situation. It's a good idea to shop around before choosing a loan, because there are a wide variety of loans available. The following contains advice on what you should search for.
The best mortgage deals and information about finding them will be discussed in the following article. The possible difficulties you could encounter will be explained to you, as well as things that you should look for. If you're considering a home purchase or a refinance, you should stop to check out this worthwhile information on locating the best mortgage deals.
First compare mortgage lenders and find one you want to work with before you begin to look at interest rates. Banks, loan companies and credit unions all offer mortgage loans. All lenders will probably tell you that they have the best mortgage deals, but your own financial circumstances will be the determining factor.
It isn't always easy to find the best mortgage deal available. It can be daunting to have to choose among the various alternatives if you haven't done this previously. Many people think it is only necessary to compare mortgage lenders and not the mortgages themselves, but that would be a mistake. But even after you choose a lender that you want to work with, your work is far from over.
Upon first starting the search for a loan provider, ask for a list of their interest rates at present. Another thing to ask is whether the quoted rates are adjustable or fixed. The best mortgage deals for the majority of people will normally be the ones with fixed rates. Ask about the APR, or annual percentage rate, of any loans that you're interested in. The APR is a yearly rate that expresses your additional costs such as fees paid to the broker, and points. Look for any hidden fees you didn't anticipate.
So that they can find you the best deal, mortgage lenders compare every loan that might be a good match with your personal finances. Take advantage of the help they offer, though you should be aware that there are decisions that still lie in your hands. Although the lender will let you know how much you are qualified to borrow, you are not obligated to borrow the entire amount. Don't get a mortgage with a monthly payment that your budget cannot easily handle. The best mortgage deals are ones that your budget will be able to handle for the long term.
Although a lender may think they have the best mortgage deals, they may not be the best ones available in your eyes. Now that you know some of the important pitfalls to avoid, you can make the right choices when you're ready to sign a loan agreement. Do your own research and ask your lender to clarify any questions you have, and then finding the best mortgage deals will become much easier.
Article Source: http://www.articlesbase.com/mortgage-articles/what-you-should-find-out-about-your-lenders-best-mortgage-deals-559625.html
About the AuthorWe hope that you enjoyed reading this article. If you are looking for additional information on best mortgage deal available or best mortgage deals, please be sure to check out our website.
The best mortgage deals are those that fit in best with your current financial situation. It's a good idea to shop around before choosing a loan, because there are a wide variety of loans available. The following contains advice on what you should search for.
The best mortgage deals and information about finding them will be discussed in the following article. The possible difficulties you could encounter will be explained to you, as well as things that you should look for. If you're considering a home purchase or a refinance, you should stop to check out this worthwhile information on locating the best mortgage deals.
First compare mortgage lenders and find one you want to work with before you begin to look at interest rates. Banks, loan companies and credit unions all offer mortgage loans. All lenders will probably tell you that they have the best mortgage deals, but your own financial circumstances will be the determining factor.
It isn't always easy to find the best mortgage deal available. It can be daunting to have to choose among the various alternatives if you haven't done this previously. Many people think it is only necessary to compare mortgage lenders and not the mortgages themselves, but that would be a mistake. But even after you choose a lender that you want to work with, your work is far from over.
Upon first starting the search for a loan provider, ask for a list of their interest rates at present. Another thing to ask is whether the quoted rates are adjustable or fixed. The best mortgage deals for the majority of people will normally be the ones with fixed rates. Ask about the APR, or annual percentage rate, of any loans that you're interested in. The APR is a yearly rate that expresses your additional costs such as fees paid to the broker, and points. Look for any hidden fees you didn't anticipate.
So that they can find you the best deal, mortgage lenders compare every loan that might be a good match with your personal finances. Take advantage of the help they offer, though you should be aware that there are decisions that still lie in your hands. Although the lender will let you know how much you are qualified to borrow, you are not obligated to borrow the entire amount. Don't get a mortgage with a monthly payment that your budget cannot easily handle. The best mortgage deals are ones that your budget will be able to handle for the long term.
Although a lender may think they have the best mortgage deals, they may not be the best ones available in your eyes. Now that you know some of the important pitfalls to avoid, you can make the right choices when you're ready to sign a loan agreement. Do your own research and ask your lender to clarify any questions you have, and then finding the best mortgage deals will become much easier.
Article Source: http://www.articlesbase.com/mortgage-articles/what-you-should-find-out-about-your-lenders-best-mortgage-deals-559625.html
About the AuthorWe hope that you enjoyed reading this article. If you are looking for additional information on best mortgage deal available or best mortgage deals, please be sure to check out our website.
Friday 4 June 2010
Mortgage Refinance Options
What comes to your mind when you hear mortgage refinancing? For most people mortgage refinance options are those that offer lower interest rates. While this is one of the options, the bigger picture includes more than interest rates.
While getting a lower rate is definitely the primary goal, there are other mortgage refinance options you can make that can maximize your savings to your own particular circumstances.
One of the options you have is to lower your monthly payments. While lower interest rate is one way to go about it, the other way is to extend the current mortgage terms. For example, refinancing into a 40-year loan is one option that many lenders are willing to offer.
As you extend the length of payment, you are at the same time lowering your monthly payment. While this will result in higher interest rates over the long run, it can be a life saver for someone in a tight financial situation.
Another of the mortgage refinance options is to reduce the term of the loan. 15-year loans rates are so low to the point that you can refinance into a shorter term for the same monthly payment and still pay off the loan several years earlier. Going further with this, you can also choose a different loan type.
Refinancing into an adjustable-rate mortgage (ARM) has much lower initial rates than fixed rate loans. If you have property equity, then going for the ARMs is a good refinancing choice. The property equity will allow you to have enough to refinance once the interest resets down the road.
Mortgage refinance options that involve “no-cost” refinancing can also address closing costs on a new mortgage. This refinancing option allows you to roll the closing costs into a new mortgage with slightly higher interest rates than if the closing costs were paid separately.
You save money using the “no-cost” refinance option by ensuring the new monthly payments are less than the older ones as long as the payoff date remains the same. In this way, you will be saving money. You however need to ensure that the lender is not artificially lowering the monthly payments by stretching the loan term. The payoff date should be the same or less. These mortgage refinance options however come with steep early payoff penalties to protect the lender from unnecessary expenses.
Take time to consider your circumstances and the options available for you and select mortgage refinance options that are right for you.
While getting a lower rate is definitely the primary goal, there are other mortgage refinance options you can make that can maximize your savings to your own particular circumstances.
One of the options you have is to lower your monthly payments. While lower interest rate is one way to go about it, the other way is to extend the current mortgage terms. For example, refinancing into a 40-year loan is one option that many lenders are willing to offer.
As you extend the length of payment, you are at the same time lowering your monthly payment. While this will result in higher interest rates over the long run, it can be a life saver for someone in a tight financial situation.
Another of the mortgage refinance options is to reduce the term of the loan. 15-year loans rates are so low to the point that you can refinance into a shorter term for the same monthly payment and still pay off the loan several years earlier. Going further with this, you can also choose a different loan type.
Refinancing into an adjustable-rate mortgage (ARM) has much lower initial rates than fixed rate loans. If you have property equity, then going for the ARMs is a good refinancing choice. The property equity will allow you to have enough to refinance once the interest resets down the road.
Mortgage refinance options that involve “no-cost” refinancing can also address closing costs on a new mortgage. This refinancing option allows you to roll the closing costs into a new mortgage with slightly higher interest rates than if the closing costs were paid separately.
You save money using the “no-cost” refinance option by ensuring the new monthly payments are less than the older ones as long as the payoff date remains the same. In this way, you will be saving money. You however need to ensure that the lender is not artificially lowering the monthly payments by stretching the loan term. The payoff date should be the same or less. These mortgage refinance options however come with steep early payoff penalties to protect the lender from unnecessary expenses.
Take time to consider your circumstances and the options available for you and select mortgage refinance options that are right for you.
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