Refinancing real estate is a big business. You may have heard the term “conforming” and wondered what a loan would conform to? The answer is that loans that have certain characteristics and are of a certain type of considered confirming and can be sold into the stock and bond market. As a typical mortgage holder, this buying and trading is almost invisible to you and with the exception of possibly a letter saying your loan was sold, everything about the loan stays the same.

Refinancing a home mortgage is much easier than applying for a completely new one. There are two major type of refinancing options. Those where you are simply refinancing to gain a lower interest rate and new loans where you are looking to take out some of your equity in cash.

The first option, that of lowering your interest rate may at first seem like a good deal. Remember however that during the first few years of a loan, the huge majority of the payments all go to interest. By doing a refi, you are able to lower your payment and get a lower interest rate but you also start all over on that 30 year mortgage. So you pay a little less money per month but pay it for a longer period of time. Be certain to check and see if even with the lower interest rate which way actually costs you more in the long term.

Another thing to consider is the cost of the loan. If you’re NOT a long term type or homeowner and plan to move within the next 3-5 years, does refinancing a home mortgage make sense when all the costs and fees are considered?

Taking out equity from your home is another popular reason to consider refinancing a home mortgage. In this scenario, a homeowner isn’t as concerned about lowering their monthly payments but wants cash for a variety of reasons. Once again however, a new mortgage may not be the best solution. Consider a 2nd mortgage. Seconds are typically for 15 years and they have the benefit of preserving your great interest rate on your primary mortgage. There are several types of loans that are essentially a second mortgage on your home.

Anyone considering a home mortgage refinance should look at all the options before making the decision. Know and understand your situation and if you plan on being in the home long term. (>5years). Check out the available options and make the right decision for your situation. Refinancing a home mortgage can make a lot of sense given the right circumstances.

By: Abbie Frank

If you are thinking about refinancing your mortgage then the easiest and first place you would go to is the same place you are currently using. This is because you have dealt with them before and they know you too. Sometimes it is better to deal with someone you have dealt with before because you know how they work. In other cases the reason you would look towards them is because they may have contacted you to offer you some deal that looks like it could be of some benefit to you.

In a number of my other articles I stressed the importance of getting your current mortgage contract looked at. This was so that you could find out of you could get out of it and also what the costs involved would be. This may or may not apply if you are thinking of refinancing with the same financial institution that you are using now. You will still need to find out if the fees for exiting from the current mortgage still apply. Sometimes they will make an offer look great but they have just hidden all the fees in the new refinanced mortgage. Be careful of this because you may end up paying more than you would have and the bank makes another win from a poor soul.

In any case, you should be made to feel comfortable and not being played the fool. Know your rights and be prepared for them. If you have done your research and know that other banks or financial institutions are offering the same or a better deal than you can work out something with your current place. They want to keep your business so they will work harder to keep you if they know you want to leave them. This is why they put the large exit fees into their contracts. Not so that you can pay them but so that you stay with them.

In summary, getting your mortgage refinanced by using your current bank may be no better than if went and refinanced anywhere else. However, if you were to go to an appointment with them with a lot of prepared information and show you are not prepared to play the fool then they may be convinced to give you a better interest rate.

By: John Forbeson

Now we know that we will be having a little boy come December. I have been looking for some cute little outfits. I found this cute appaman onsie with a funny little monkey on it. It will be perfect for summer and year round here in Florida. I love the navy monkey on the blue cotton fabric. How cute. Of course, I can’t buy everything I see. I am sure babies grow so quickly that they hardly have time to wear all the designer baby clothes you have for them. They won’t grow out of these stuffed animals that fast. One or two special toys would be okay to indulge in. Something soft, and cuddly. I am partial to the jellycat. There are some new designs, too. I found Cordy Roy Alligator, and the Cordy Roy Aardvark. Maybe I will get one for me and one for a friend. I have a few friends that are all expecting within the year. I think  Jellycat makes a great gift.
While I am out shopping I might as well get a little something for myself. There is an adult bathrobe by Barefoot dreams that looks fantastic. The fabric looks so soft, and it is machine washable! That is a great benefit. I think they would be perfect for a cover up when we get out of the pool on the cool evenings!