Mortgage Refinance: Reassessing Your Home Mortgage Loan Options Mortgage Refinance

Are you aware that on average Americans refinance their home mortgage loans approximately every four years? If you are in possession of your home for two years or more it is probably a good time to review your residential mortgage options.

Apply for a Mortgage Refinance Loan Online

As the years go by, your financial needs and priorities may change and ideally your home mortgage loan should change to reflect your new requirements.

By educating yourself with the help of Mortgages-Magazine.com, you will have the information needed to find the residential mortgage best suited for you and be in a position to negotiate for better borrowing terms with your mortgage lender. You could now be in the position to:

• Lower your monthly mortgage payments
• Pay off your home mortgage loan earlier
• Do the renovation project you always wanted
• Use the money to purchase an investment property
• Restructure your debt commitments

Mortgage Refinance Tips

Be Aware Of Costs Involved In Refinancing Your Mortgage: Make sure you know all the costs associated with getting out of your current home loan and entering into a mortgage refinance. These costs include penalties for breaking out of your current residential loan, origination fees, credit reports and legal fees, and if required, private mortgage insurance and extra life insurance premiums. Only when you have all the costs associated with refinancing your mortgage and the monthly payment savings will you know whether it’s worth your while to go ahead with the new home mortgage loan.

Mortgage refinance costs can run up to 2% of your loan amount. Depending on your standing with your mortgage lender, these costs are negotiable. To increase your bargaining position with the mortgage banker, a significant improvement in your credit score and a lower loan to value help. As long as the interest savings from a lower borrowing rate outweighs the costs, a refinance home mortgage will be to your financial advantage.

Biweekly Mortgage Payment Program

Making mortgage loan installment payments more frequently than on a monthly basis can generate interest expense savings for you by shortening the duration of your residential loan. Most mortgage lenders allow for bi weekly mortgage payments. Biweekly mortgage payments are made every two weeks. On a yearly basis, you make the equivalent of 13 monthly mortgage payments. As a result, you make one extra mortgage payment a year.

The effect of frequent mortgage payments is it progressively reduces the mortgage loan principal each time a payment is made, lowering the mortgage interest accruing each month. If you had a $100,000 30 year fixed mortgage with a mortgage interest rate of 6.75%, a mortgage biweekly payment plan will save you $31,004.30. The residential mortgage is paid off 5 years 9 months earlier.

Home Equity Debt Consolidation Loan

Substantial savings could be realized by consolidating all your debts into a home equity loan. The days of having a home mortgage loan, a personal loan, a car loan, a savings account, a checking account and outstanding balance on credit cards are becoming a thing of the past. A home equity debt consolidation loan is secured by your home, bringing lower borrowing rates and tax savings.

Financially, it makes sense to consolidate your various personal loans into a single convenient home equity loan. The interest savings can then be used to pay down your debt principal. A home equity debt consolidation loan only works if you’re financially disciplined. This means you don’t run up debts again such as credit cards. If you do, you could end up with more debt than you can manage. Since your home is used to secure the home equity loan, failure to make payments could lead to foreclosure of your home.