Choosing The Best Time To Refinance Your Mortgage

Choosing The Best Time To Refinance Your Mortgage
Choosing to refinance your existing mortgage or home loan
can be a wise and profitable decision, as you will likely
be able to take advantage of lower interest rates from a
different bank or lending institution.

It is possible to save hundreds or even thousands of
dollars every month, but the trick is knowing what you need
to do in order to have everything structured in the best
possible manner to minimize your total cost.

If you are reading this, there is a good chance that you
already have a mortgage, and you know that the size of your
monthly payments depends upon the total value of the
mortgage as well as the interest rate to which you and the
bank agreed.

If you have a fixed rate mortgage, it will be easier for
you to figure out whether refinancing your home loan will
be a good option for you. If you have an adjustable rate
mortgage, the calculation may vary but you should still be
able to get a good idea of where your current interest rate
is and what direction it will be headed in the next few
years.

Most people pay attention to only the interest rate when
looking to refinance their mortgage, but this can be a
misleading methodology for a few reasons:

First, more important than just the interest rate is the
TOTAL amount of interest that will eventually be paid back.

To illustrate this point, let's say that you got a $500,000
mortgage and you agreed to a 30-year period and a fixed
interest rate of 9%. It has already been 18 years, so now
you have only 12 years of payments left.

Now if you were to refinance this, you could get a new loan
with a 5-year term, and even if you had an 11% interest
rate with this new loan, you will still pay back less total
interest. This is important to realize as it will save you
more money in the long run, and if you are a person that
only looks at the interest rates then you might not see the
potential benefit of a refinancing situation such as this.

The point here is that even though the surface interest
rate may be higher with a refinanced loan (regardless of
whether it is fixed or adjustable), you may still be paying
back LESS total interest over the term of the loan.

What your goal should be in terms of your home loan or
mortgage is to minimize the amount of total interest that
you will pay back to the bank, while making sure that the
interest rate and time-period you have chosen will make
your monthly payments as comfortable as possible.

You would not want to over-extend yourself financially by
creating monthly payments that are too large, but at the
same time remember that the smalle the payments are (and
the longer the time you pay them) the greater the total
amount of interest repaid will be.

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If you are looking to refinance your mortgage or home loan,
learn some strategies that the banks do not want you to
know at http://www.YourRefinancingSolution.com

Getting An Unsecured Loan - Is It Possible With Bad Credit?

Getting An Unsecured Loan - Is It Possible With Bad Credit?
If you want to borrow money but have somewhat poor credit,
and you have nothing of significant value to use as
collateral, you may still be able to get an unsecured loan.
The determining factor is how bad your credit really is.

Many people have had credit problems at some point.
Whether you have made several late payments, or have had a
more serious credit issue like a bankruptcy, your credit
may not be as poor as you assume it to be. While a
bankruptcy remains on your credit report for ten years, as
time passes, the effect of a bankruptcy or other past
credit problems on your credit will diminish.

As the number of home foreclosures continues to increase,
and the number of people filing for bankruptcy rises, a
growing number of lenders are catering to the sub prime
credit market. You will pay a higher rate of interest to
get an unsecured loan with bad credit, but you are likely
to find a willing lender with some persistence.

Before entering into a loan agreement, you should order a
copy of both your credit report and your credit score. A
quick look at your credit score will give you a broad
picture of the condition of your credit. FICO scores are
the accepted standard of ranking credit, and they range
from a low of about 300 to a high in the mid 800's. The
median score of the US population is approximately 720,
although more than 40% of people have a FICO score below
700. Your credit score is the only gauge of your financial
condition that many lenders will use to determine your
eligibility for credit and at what interest rate they will
loan you money.

For a more detailed analysis of your credit you should take
a look at your credit report. Your credit report will
reveal your history of on time payments, and whether or not
you have defaulted on debts in the past. Lenders that
make a practice of providing unsecured loans for people
with bad credit will want to take a deeper look at your
situation than a simple three digit number would allow.

One reason that lenders may want to view your credit report
is that there can sometimes be a discrepancy between your
credit score and your complete credit history report. Too
many inquiries into your credit by lenders in the recent
past can temporarily lower your credit score, but may not
accurately reflect your use of credit. Lenders that
specialize in unsecured loans for people with bad credit
expose themselves to considerable risk of default, so they
must have a way to rank loan applicants, the majority of
whom have low credit scores.

A poor credit score could also be the result of incorrect
information on your credit report. If your credit score
contains inaccuracies that are pulling down your credit
score, you can and should have them corrected or removed as
soon as possible. Companies making entries to your credit
report must verify that their information is correct, or
the item can be removed. When you are trying to get an
unsecured loan with poor credit, you don't need the added
burden of incorrect information on your credit report.

As a last resort, you may need to find a co-signer to get a
loan. This loan is not secured by you, but rather by the
obligation of your co-signer to repay the debt in the event
you do not. Before finding a co-signer, make sure you will
realistically be able to make payments on the loan. If you
are unable to afford the payments, you will jeopardize the
credit of your co-signer, and harm your own credit even
further.

Even if you are unable to get an unsecured loan, don't lose
hope. Many valuables can be used as collateral for a loan.
Jewelry, automobiles, and real estate are just a few
examples. You may also be able to find a lender who will
only consider your income when deciding whether or not to
extend you credit. Be realistic about your credit and your
ability to repay the amount of money you wish to borrow.
With a bit of creativity and some persistence, almost
anybody can get a loan, even with damaged credit.

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Gregg Pennington writes articles on a number of topics
including loans, debt and credit. For more information
about finding a loan with bad credit visit:
http://www.onlinemoneysources.net/bad-credit-personal-loans.
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