Refinancing Options: Money and Loan Information

Fixed rate mortgage loans, in the current interest rate environment (2005) make the most sense, especially if you plan on living in your new home for several years. Rates are almost certain to rise in the near term. Even if they do not rise, an adjustable rate mortage's rate will rise. Most banks set the initial rate low in order to entice new borrowers. However, as soon as they get the chance, they will raise the rate. Right now, 30-year and 15-year fixed-rate loans are very low. It is also unlikely that rates will fall again to a level where refinancing is worth the fees and closing costs.

Sometimes the best way to pay for car is not getting an auto loan, but getting a home equity loan. Obviously this means you must own a house, but if you are able to borrow money against the house in the form of a home equity line of credit or second mortgage, you will be able to buy your car at a lower interest rate AND the interest is likely tax deductible. So, before you get an auto loan through your dealership or bank check out an equity loan option. It could save you money.

Make sure to get a Good Faith Estimate from your loan broker as early as possible. You want to know all the fees you will be required to pay at closing. Many lenders will have fees for the smallest things that other banks may not have. Yes, you are getting a 5% rate on your loan, but with all the extra fees and points you might have to pay, the real rate on this loan might be a lot higher. Another advantage of getting a Good Faith Estimate is that the form is relatively standardized. You can take the estimate to another broker or your local bank and see if they can beat the offer. Do not be intimidated by pressure tactics that mortgage brokers like to employ. There is a reason why they all seem to take so long to get your loan through. They all wait until it is too late for you to find a better deal... and there is ALWAYS a better deal.

Mortgage Options - Mortgage Options Specializes in loans for home buyers, refinancing, and opportunities for lenders.
Alternative Mortgage Options - Alternative Mortgage Options Specializes in residential mortgages, refinancing, debt restructuring, debt consolidation, construction, home equity and home improvement loans in Minnesota and Wisconsin.
Independent Mortgage Company - Independent Mortgage Company Offers refinancing, home equity and investment property financing options.