Got Questions On Refinancing?
If you are thinking about the possibility of obtaining a home mortgage refinance loan, you may have some questions ... including some very basic questions such as "what is refinancing?" You will be provided with valuable information about home mortgage refinancing here.

 
Homepage Homepage
Home
Refinancing Basics
What To Consider
Refinancing Options
Refinancing Strategies
Refinancing Procedure
Miscellaneous Tips
Loan Shopping

 


 

 

 




Shopping for Loans: How to Compare Loans

Introduction

If you’re shopping for a refinance loan, you’re probably dizzy from looking at all your possible loan products. From ARMs, to GEMs and FRMs, you might not care if you saw another acronym as long as you live. However, there are some things to think about first that may make your search easier. The answers to these questions may be of surprising help in deciding which loan is for you.

Why do you want to refinance? If you’re looking for a cash-out refinance, consider other loans first, like the home equity loan or the home equity line of credit. They may benefit you more in the long run. If you’re looking to build equity faster, try short term fixed rate mortgages—even reducing five years from the length of your mortgage term makes a huge difference.

How long have you been in your current home? If you have not been there long, and don’t have a lot of equity, don’t count on a cash-out refinancing. You should think more about which loans will give you the best monthly payments and help you raise your equity.

How long do you plan to stay in the home? If you’re going to be there awhile, consider a fixed rate mortgage. If you’re only going to be there long enough to do some improvements and move out, maybe an ARM would be better for you.




Use the answers to these questions to narrow down your search. The more risky packages like balloon loans, reverse mortgages, etc., should be looked at last unless you are going into the refinancing with a specific reason that only those loans will fulfill. Once you have narrowed down your search, go to a website with a refinance calculator. The Quicken website, www.quickenloans.com, has several you can use to help you decide on whether you should refinance, what kinds of loans are available for you, and even a term comparison.

A lot of your choice will also depend on rates. For instance, if you are not going to be in your house for long and rates are a little high, you may want to go for an ARM. If you have a sporadic income that arrives, say, twice a year, you may want the interest only loan where you can pay down your principal the two times when your windfall income arrives.

When you have assembled your comparisons and considered your life’s restrictions, always go over your possibilities with professionals, like your tax consultant and an attorney, especially around closing time. You need to get expert advice on all your important decisions.

In the end, by asking these questions, and by finding the best answer to these questions, you will find home mortgage refinancing options that actually will best meet your needs ... not only today but well into the future.




 
home | contact us
© 2017. RefinanceWhiz.com. All rights reserved