Mortgage Refinancing

The combination of rising interest rates (although still historically low) and rising home prices has caused the robust mortgage market to slow from its record pace. This has motivated Indiana lenders to either introduce creative new loan products or to more aggressively market existing products. If you have not shopped for a in a while, you will find numerous new products from which to choose. Following is a brief review of some of the new and popular products available today.

Interest Only - With this loan program you are paying only the interest on your Indiana mortgage and are not paying any principal. This reduces your monthly payments and can allow you to afford a larger home or save more money on a mortgage refinancing or home purchase loan. If used carefully, you can also free up cash flow that can be used for investment purposes or to pay down high interest rate debt.

Negative Amortization - These are often marketed using the phrase "option arm" or "choice mortgage". With this loan type, your payment does not cover all of the monthly interest. Often, your mortgage balance is increasing and the underlying interest rate is usually a monthly variable rate. These loans are used to dramatically reduce your monthly payment and can be used for an Indiana mortgage refinancing or home purchase. This program should be reserved for the more sophisticated borrower and it is important that you understand the terms of the loan. Click here for more information about Indiana Mortgage Refinancing and Indiana Second Mortgage Solutions.

40 Year Amortization - Rather than paying off in 30 years, this loan pays off in 40 years. As with the Negative Amortization and Interest Only, this program is used to reduce your monthly payment.

Stated Income / Reduced Income Documentation Loans - There are a variety of these loan products available, but they are primarily used to for individuals with difficult to verify income. These can be used for Indiana Mortgage Refinancing, Indiana Second Mortgages and Home Purchase Loans. As lenders have become more comfortable with credit scoring, these products have become very popular. Essentially the lender is relying on the credit score for their loan decision. They realize that borrowers with higher credit scores will pay their mortgage and they do not need to fully verify their income.

ALT A Programs - The "ALT" is short for Alternative and the "A" refers to the borrower category. These are categories of mortgages that fall outside the more stringent guidelines of Fannie Mae and Freddie Mac. Generally these mortgage refinancing programs allow for more flexibility with regards to loan to values and income documentation requirements and can be used for home purchase, mortgage refinancing and second mortgages.

Hybrid Second Mortgages - Traditionally, your options for an Indiana second mortgage were either a fixed rate, fixed term loan or a variable rate, open ended line of credit. Now, you can have the benefit of both. You can start your second mortgage as a variable rate home equity line of credit and then lock in all or a portion of it to a fixed rate for a fixed number of years.

About the Author
Chris France is a professional mortgage planner with over 10 years lending and banking experience. For additional questions or comments about this article, please contact Chris France at American Mortgage Funding Corp or christopher.france@branch.cfic.com or 1-800-943-9472.

Labels: mortgage refinancing

If you are a homeowner with tarnished credit you can still refinance your mortgage loan. In fact, you can use mortgage refinancing to rebuild your credit and qualify for even better mortgage interest rates. Here are the basics of bad credit mortgage refinancing to help you decide if this type of mortgage is right for you.

Bad Credit Mortgage Refinancing: Expect Higher Interest Rates

There are many mortgage lenders willing to approve your mortgage; however, you will pay higher interest rates and fees. Mortgage refinancing for homeowners with tarnished credit may require a type of specialty lender known as a “Sub-Prime” mortgage lender. Because you will pay more it is important to carefully research mortgage offers and comparison shop for the most competitive interest rate.

Bad Credit Mortgage Refinancing: Choosing the Right Lender

Mortgage refinancing with a sub-prime lender is more risky than financing your home with a traditional mortgage lender. Bad credit lenders often engage in predatory lending practices. Choosing a predatory lender when refinancing your mortgage could lead to overpaying and you could even lose your home to foreclosure.

When comparing loan offers it is important to request the Good Faith Estimate from each lender you consider. Pay close attention to lender fees and closing costs found on the Good Faith Estimate. The origination fees you pay should not be higher than 2% of the loan amount for bad credit mortgage refinancing. You can learn more about your bad credit mortgage refinancing options, including costly mistakes to avoid by registering for a free mortgage tutorial.

To get your free mortgage tutorial visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com

Bad Credit Mortgage Refinance Information

Article Source: http://EzineArticles.com/?expert=Louie_Latour

Labels: mortgage refinancing

If you are interested in Mortgage Refinancing, it is normally for one of two reasons. Either to get a lower interest rate to save money in interest payments over the life of the loan. Or, you are interested in refinancing with cash out.

Mortgage refinancing can be done in a number of ways. The two most common are going to your local bank or using the internet.

The internet is becoming a more and more popular method of mortgage refinancing by the day.

Some of the reasons are obvious, mortgage refinancing over the internet is very simple, and the information you can find on the mortgage industry is limitless.

The mortgage industry is a very competitive one, so using the internet to shop around for mortgage refinancing is very smart. As opposed to using your local bank that normally has one product for you to choose from.

Finding someone to do your mortgage refinancing by way of the internet may be easier than you think. These loan officers are hungry for your business, and by putting only limited information on a secure mortgage web site, you will have at least four mortgage loan officers calling to compete for your business within twenty-four hours.

There is also no need to hide the fact that you are shopping around, this only forces loan officers to come back at you with the best rate they can possibly find in order to keep you from doing business with someone else.

The best part is, you are not committed to anything by shopping around, and this is a great way to educate yourself about the programs that are available, and to get a feel for how mortgage refinancing works.

In the end, the choice is yours. But remember, take your time and gather as much information on the mortgage industry as possible. It will help you make much wiser choices, which will pay off in the end.

Author Bio
Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of www.explainingmortgages.com, a mortgage resource site devoted to making mortgage terms and products easy to understand.
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Labels: mortgage refinancing