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Applying For a Refinance Morgage Online

November 16, 2009

Thanks to the internet, finding and applying  for a refinance morgage has never been easier. With so many online sites  choose from, it is also easy to it’s easy to find the  finance  that require regardless of your credit score.

If you have poor credit it will be more difficult to get a refinance morgage but not impossible. You will however have to pay a higher rate of interest in most cases.

The secret to getting the best deal in a refinance morgage loan is to do you homework in advance and know the mortgage market and process of applying for a mortgage and how to get the best mortgage deals. Spend as much time as you can doing research and you will be well rewarded. Remember that you will have the moetgage for 20 to 30 years so it pays to get the best deal available.

The Benefits of a Refinance Morgage

November 7, 2009

A refinance morgage is simple; it means you pay off an existing mortgage loan and take on a new mortgage loan with hopefully lower interest rate and repayments. A refinance morgage is a method for the borrower to get lower interest rate, consolidate their debt, cash out some equity. To get approved for a refinance mortgage there are a few things that you need to take into account. The borrower’s income must be able to support to the new loan meaning they must pass the lenders criteria for the loan to be approved. Also that the value of the home must be realistic and confirmed by certified real estate appraiser. This is very important when refinancing because the banks want the loan-to-value ratio under a certain number.

Now if a borrower wants to cash out some equity the loan-to-value is critical. Also if a borrower does not have more than 20 % equity in the property they will be required by the lender to have private mortgage insurance in case the borrower defaults on the loan. How do the banks know if you are eligible to get a refinance loan? There are a number of factors which take into account. These include your income, your credit rating and also how much additional debt you are carrying. The debt is based on something called debt to income ratio. They do not want to see your total mortgage payment including interest, taxes etc to be more than 32% of your income.

A refinance morgage is most suitable when interest rates are low or going down, not when they are at historic highs. The reduced interest rate allows a homeowner to avail of a lower monthly payment or to reduce the term of the loan. Also rather than trading up to a larger house, an expanding family could refinance in order to extend the property they already own. A note of caution, you should only use the money to add value to the property. Another good reason for refinancing when rates are increasing is to replace an adjustable rate mortgage with a fixed-rate mortgage.

Refinance morgages is readily available online. There are many lenders offering this kind of mortgage loan at competitive rates especially if you have good credit. With poor credit it can be more difficult in the current economy. Regardless of you credit score you should do some comparison shopping in order to find the most lucrative offers.

The huge number of online lenders for both good and poor credit refinance morgages has made it easy to research the loan offers online. This makes it very easy to compare offers from hundreds of different lenders. You can complete all the refinance morgage details online and get approved very quickly.