Refinance Smarts

Bankruptcy
Bankruptcy is a legal declaration of an inability to pay creditors. Both individuals and organizations can file bankruptcy.

Cash-Out Refinancing
Cash-out refinancing allows you to refinance your current mortgage for more than you owe and pocket the extra money that is left over.

Closing Costs
Closing costs are fees paid at the time of a loan purchase. These fees may include a loan origination fee, points, appraisal fees, title search and insurance, attorney fees, a deed recording fee, credit report charges, and other lending fees.

Credit Report
A credit report is a financial document that reports detailed information about an individual’s credit history.

Credit Score
The term credit score is used to describe the three-digit number that appears on credit reports. This number represents an estimate of an individual’s financial creditworthiness.

Home Equity Loan
A home equity loan allows a homeowner to borrow against the equity in their home and provides a lump sum of cash to be used for home improvements, debt consolidation, or however the homeowner sees fit.

Interest-Only Loan
An interest-only loan requires you to pay only the interest, not the principle for a specific period of time.

Interest Rate
An interest rate is a rate that is charged or paid for the use of money.
Mortgage Refinance
A mortgage refinance allows a homeowner to get a new loan to pay off their current mortgage loan.

Principal
Principal is an amount of money that is borrowed. In some cases, principal may refer to the amount of money that is left to pay on a loan.

Refinance
Refinance is a type of loan that is used to pay off another loan. Refinance may also refer to a lengthened term of debt.

Second Mortgage
A second mortgage is a mortgage on real estate that has already been pledged as collateral against another mortgage.

Student Loan
A student loan is a type of loan that is used by a student to pay for education expenses, such as tuition, books, or room and board.

When you get a home mortgage refinance loan, you will be required to fill out a loan application. You may also be required to supply other types of documentation. This home mortgage refinance loan checklist can help you gather everything you need to get the refinance ball rolling.

The documents that you need to supply to get a home mortgage refinance loan will vary depending upon your lender and the type of loan that you are getting. However, there are common pieces of documentation that almost everyone will need to supply.

Home Mortgage Refinance Loan Document Checklist
Though you may or may not need everything on this list, it is a good idea to have everything nearby when you get ready to complete you home mortgage refinance loan application:

• Proof of income (2-4 recent pay stubs)
• W-2 forms to show past employment and income history
• Proof of homeowners insurance
• Copy of title insurance
• Asset information (savings and checking account statements, 401K statements, and other investment record for stocks and/or mutual funds)

If the loan application requests documentation or figures that you do not have, take time to find what you need. Your application needs to be as complete and accurate as possible if you want to get qualified for the home mortgage refinance loan.

Almost any loan can be refinanced. If you have been thinking about refinancing your auto loan, home loan, or another type of loan, this article can provide you with valuable refinance loan information.

When you refinance a loan, you take out a new loan to pay off an existing one. A refinance loan can get you a lower interest rate, lower your monthly payments, and free up cash for other expenses. In some cases, you may be able to consolidate debt or get cash at closing.

Mortgage Refinance Loan
If you are a homeowner, you have several refinance loan options available to you. You can refinance from an adjustable-rate to a fixed-rate loan to lower your monthly payments, consolidate debt, or lengthen the term of your loan. You can also take advantage of cash-out refinancing, which allows you to borrow from your equity.

Auto Refinance Loan
Auto refinance is one of the best-kept money saving secrets around. By getting an auto refinance loan, you can obtain a lower interest rate, which will allow you to save hundreds, possibly even thousands, of dollars over the life of your loan. No appraisal is necessary and getting approved for this type of refinance loan is a simple process.

Student Loan Refinance
If your student loan payments are too much to handle, you can refinance them to get a lower interest rate or to lengthen the term of the loan. In some cases, you may be able to refinance all of your student loans together.

Refinancing your loan is serious business. You want to get the lowest rate possible and the best terms around. By learning how to compare refinance loan lenders, you can do all of this and more.

Choosing a lender is the most important decision you will make during the refinance loan process. In addition to setting your loan terms, the lender will be establishing the lending fees and the rates you pay. By choosing the right lender, you can make sure that your refinance loan is worth the effort.

Making Comparisons
You should never get a refinance loan without comparing offers from several different lenders. Lending fees and rates can vary dramatically. By shopping around, you can find the refinance loan that is right for you. You can contact traditional banks and credit unions for rates or you can visit one of the many lenders online for a quick quote. In some cases, you may get a better deal online.

Questions to Ask the Refinance Loan Lender
By asking your potential lender questions, you can make sure you completely understand the terms of the refinance loan. This could save you a great deal of trouble in the future. Questions you may want to ask your refinance loan lender include:

• What is the refinance loan rate?
• Is the rate adjustable or fixed?
• Is there a lending fee? How much is it?
• What will be the total cost at closing?
• What happens if I miss payments?
• What happens if I default on the refinance loan?

If you are thinking about refinancing your loan, you may want to consider using an online lender. Not convinced? Keep reading. This article offers three reasons why online refinancing can help you get the best deal on your next loan.

#1 Reason to Use Online Refinancing: Competition is Fierce
The online lending market is extremely competitive. There are many lenders out there who are looking for new customers. If you need to refinance one of your loans, online refinancing can provide you with a wealth of lenders who are more than willing to compete for your business. And, getting a quote is easy. Some websites now allow you to fill out one application and receive quotes from 3-5 competing lenders.

#2 Reason to Use Online Refinancing: Low Rates
The rate you pay can have a significant impact on the cost of your refinance loan. Fortunately, online lenders are now offering some of the lowest rates in years. Traditional banks and credit unions simply can’t compete. If you want a low rate on your next refinance, online refinancing is definitely the way to go.

#3 Reason to Use Online Refinancing: Credit Issues
If you have problems with your credit, online refinancing may be better for you. Many lenders online now specialize in refinance loans for borrowers who have less than perfect credit. Often times, these lenders are more than willing to give you a second chance. This makes it much easier to get approved for the refinance loan you need.

If you are thinking about refinancing your loan, you may want to consider using an online lender. Not convinced? Keep reading. This article offers three reasons why online refinancing can help you get the best deal on your next loan.

A home mortgage refinance allows you to pay off your original mortgage loan using money from a new loan. If you are thinking about refinancing your home, this article can help by providing basic information on how a home mortgage refinance works.

If you are unhappy with your current mortgage, you can get rid of it with a home mortgage refinance. In most cases, a home mortgage refinance will save you money by allowing you to secure better loan terms, lower interest rates, or lower monthly payments.

Who Should Get a Home Mortgage Refinance?
If you have an adjustable-rate mortgage and want to prevent increases in your monthly mortgage payment, you should consider home mortgage refinance. By refinancing, you can lock into a lower fixed-rate and possibly lower your monthly payments. If you have high-interest credit card debt, a home mortgage refinance can help there too. Auto loans and credit cards can be consolidated with your current mortgage to lower your monthly bills.

Home Mortgage Refinance Options
If you need a home mortgage refinance, there are several different options available to you. The most popular include a traditional refinance, cash-out refinancing, and interest only refinancing. It is a good idea to evaluate the pros and cons of each before making a decision. The home mortgage refinance you choose should be based on both your current and future financial situation.

Refinancing can be wonderful—if you do it right. If you are looking to refinance your home, there are several common refinance mistakes that you will want to avoid. This article examines these refinance mistakes one by one and provides you with the knowledge you need to make your refinance worthwhile.

Refinance Mistake #1: Not Shopping Around
Often times when homeowners refinance, they do not shop around. They simply contact their existing lender and refinance. But, this can be a huge mistake. Your existing lender may not be offering the best rates or loan terms. Paying too much for your refinance is never a good idea. If you want the best deal available, you will need to evaluate all of your options.

Refinance Mistake #2: Not Reviewing Documents
Reviewing refinance loan documents can be time consuming and tedious, but it is a very important part of the refinance process. By neglecting to properly review the full loan document, you could be setting yourself up for trouble. If possible, get any refinance documents that require a signature early so that you will have plenty of time to read them over and ask questions prior to signing them.

Refinance Mistake #3: Not Saving Money
One of the main reasons to refinance is to save money. If you aren’t getting a better rate, lower terms, or the cash needed for other expenses, then refinancing is a waste of time. You should always carefully consider the financial implications of a refinance before going through with the actual loan.

As a homeowner, you have instant cash at your disposal. You can either get a home equity loan or a cash out refinance. Both options have their advantages and disadvantages, and deciding between the two can be difficult. This article makes it easier by exploring both the pros and cons of a home equity loan vs. cash out refinance.

A cash out refinance allows you to refinance your current mortgage for more than you owe and pocket the difference. For example, if you owe $60,000 on a house that is worth $110,000, you can refinance the mortgage for $110,000 and keep the extra $50,000. A home equity loan, on the other hand, is like a second mortgage. You keep your existing mortgage and take out a second loan.

Both options borrow from the equity built up in your home, but this is where the similarities end. To determine which one is best, you will need to evaluate your individual situation and financial circumstances. Here are four things that will help you decide between a home equity loan vs. cash out refinance:

Cost
While a home equity loan usually has minimal cost to the borrower, a cash out refinance may carry high loan fees and points.

Rates
Though rates are low for either option, the rates on a cash out refinance are typically lower than the rates on home equity loans.

Terms
Home equity loans are relatively flexible. You can get short terms or long terms. With a cash out refinance, you are generally allowed only two term options: 15 years or 30 years.

Cash in Hand
If you need money immediately, a home equity loan can provide you with cash in as little as five days. A cash out refinance is also quick, but tends to take longer.