Deciding To Refinance A Christian Mortgage
Deciding to refinance a Christian mortgage is a task that requires the homeowner to look at the available sources of such financing, and also to consider whether he/she has a clear goal in mind. It may be that the first mortgage on the house was an adjustable one, and a set interest rate for the life of the loan is the goal. If that is the case, finding a mortgage company that will do that isn't too difficult. One has but to look in the local telephone directory or on the Internet to find a plethora of companies that do that. What happens with refinancing is, the home owner's mortgage is paid off by the new lender, and a new loan is created with a constant interest rate (lower, it is hoped) for the life of the loan. Since the homeowner is starting over, the terms can be longer or shorter than the first one, and lower payments be set up as a result. Sometimes the lower interest rate is enough by itself to lower payments without changing the terms of the note.
People with these thoughts may have another goal in mind. If there is enough equity in the first mortgage, they may ask for additional funds over what is owed on the mortgage to pay off other bills. This allows a lower interest rate on all debts, and spreads the credit card or other unsecured indebtedness out over a longer period of time. When deciding to refinance a mortgage, the homeowner may have entered into the first loan when interest rates were higher than they are now, and simply wishes to take advantage of the new lower rate. One should profit from the deal, but remember from where all good things come. (1 Samuel 12:21) "And turn ye not aside: for then should ye go after vain things, which cannot profit nor deliver; for they are vain."
When taking this type of financing option, there are costs to consider as well. When the first mortgage was obtained, the property was surveyed, someone had to inspect it, the title had to be searched to ensure there were no prior liens on it, a title insurance policy had to be purchased, hazard insurance acquired, and certain fees like a loan application fee, the mortgagor's attorney fees, etc., and those were born by the buyer. When deciding to refinance a mortgage, the homeowner must be aware that those same costs are going to be incurred again. However, if he searches carefully he may find a mortgage company that will bear those costs. The end result should be a boon to the homeowner, and most certainly will be if he is careful about the deal he makes.
Low refinance rates are near historic lows making it an ideal time to refinance. Lower interest benefits the consumer and the economy. With a drop in a monthly payment, the consumer has more money to spend and in turn puts more money into the economy. Lower interest is possible with nearly all loan options including mortgages, existing auto loans and debt consolidations. Consumers just need to do a search and take advantage of the many services which are available to assist them in making an informed decision about refinancing. "Can a man be profitable unto God, as he that is wise may be profitable unto himself" (Job 22:2).
There are some viable options out there for consumers to get lower interest. One way is through a better mortgage. When a homeowner buys a house at a certain interest rate, there's no telling how much the market will change. The homeowner can save money by refinancing and taking advantage of low refinance rates today. There are some sites online that will allow for a comparison of mortgage lenders helping the consumer to find the best possible rates. Refinancing an existing auto loan is another way to get lower interest. Someone with bad credit may have purchased a car with high interest three years ago. Now the car owner has nearly immaculate credit. By refinancing, they will get lower interest and be rewarded for improving their credit.
Debt consolidation loans are yet another option for low refinance rates. Rolling credit card debt and other unsecured debt into one's existing mortgage is one way to secure low refinances rates. Lenders online offer low rates for debt consolidation through an existing mortgage even if credit is less than perfect. With all of these loan options, the choice to refinance usually results in a lower monthly payment and a possibly shorter pay-off term.
People wanting to refinance will find the Internet most helpful in their search for the perfect lender. They should opt for free quotes and compare options and the programs offered online. Lenders online offer tips to help the consumer make an informed decision about borrowing. Some offer information on how to obtain one's current credit score which would help in determining what interest rates are available. Compare low refinance rates with all the top lenders and fill out no obligation quote requests. Do some research online, now is the time before those interest rates go up.
Refinance A Second Christian MortgageRefinance a second mortgage to fund home improvements, consolidate debts, or simply to get cash for a vacation or to buy furniture. Right now, interest rates are still at historic lows, so the time is right to get the most value. Refinancing is possible even for those with less than good credit. First decide what is needed and how much extra money is required. A home already owned may be the answer to any financial woes. If unpaid bills are stacking up on the counter or frustration is mounting because of needed home improvements, then refinancing may be the answer.
When refinancing a second mortgage, credit can be re-established through a low-rate mortgage interest loan. Most companies don't ask for money up front. All that's needed is filling out a quick loan quote and sending it in. Comparing the rates of several different lenders so that the best rate and the best loan options can be applied for. The lenders offer fast funding and usually don't require an appraisal of the property. Check each lenders loan application for the obligations that accompany each loan.
If dealing with an adjustable rate loan, refinancing a second mortgage can lock it into a fixed rate and ease the mind about the future. If high interest credit card debt is prominent, refinancing and consolidation of the high credit card debt into a lower interest rate that also can be tax deductible is enticing. There are also flexible home equity lines of credit that allow for just drawing out the amount of money needed at the time. That way, a back-up source of funds for emergencies is available for a later time.
Check out several lending companies to find out which loan program best fits what's needed and which one has the best options for the situation. The Internet has made it easy to choose the best mortgage company available. It's also possible to check out the number of points each lender charges when refinancing a second mortgage with that company and the fees that each will charge for the loan. Before the decision is made to refinance a second mortgage, decide what kind of term to apply for, 10-year, 20-year, or perhaps a 30-year note. Know whats available for what is needed.
In any large decision making, we know that God is our greatest resource. When the decision to refinance a second mortgage or not, rely on Him, prayerfully considering all options, and ask Him to give guidance through the loan process, remembering that, "It is a trap for a man to decide something rashly and only later to consider his vows." (Proverbs 20:25) The Internet is a great resource for making good decisions when considering any type of refinance. Use it as a research tool, and proceed in prayer.
Refinancing a second mortgage can help a homeowner when extra money is needed or a reduction in monthly payments is desired. People have different reasons, but most agree that saving money in interest and freeing up monthly cash are the primary goals to be reached for their efforts. If considering this type of financing, it is important to analyze the time and cost factors, as not every one who refinances saves money. While a homeowner may be familiar with financing multiple times, refinancing a second mortgage may differ somewhat. This is simply is a mortgage taken in addition to an existing loan, against the equity that has been built up in the house.
While a first home loan is typically 15-30 years long, with payments scheduled so that the balance is paid off at the end of the term, another loan will usually have higher interest rates and shorter terms. Therefore, it is conducive for a Christian homeowner to consider refinancing a second mortgage when the interest rates dip so that they can get lower monthly payments in addition to saving money on interest over the life of the balance. Getting financing again can be a way of reworking a home loan in order to obtain more favorable terms. There are various reasons for considering this option. Some people may want to pay off their current financing at a lower interest rate. Others may want to shorten the life of the balance for their home financing, which helps them save money on interest payments over the repayment term. In addition, it can help lower the monthly payments, or enable one to "cash out" with sufficient equity, to pay off other debt, such as credit cards or car balances.
Researching options on the Internet, or with a lending office at a local financing institution is recommended. This can be done to determine whether refinancing a second mortgage is a good choice for an individual situation or circumstance. Not only will several lending companies be willing to give the additional information along with a free quote, but also there are many free financial tools online, including calculators to help figure the new payments with a lower interest rate. Remembering that the balance must be paid back and that it is not free money is important. "When thou vowest a vow unto God, defer not to pay it; for he hath no pleasure in fools: pay that which thou has vowed" (Ecclesiastes 5:4-5). Before proceeding, make sure it will actually save money. If qualifying for an interest rate that is at least 2% lower than a current rate, the borrower will probably save money. However, still figure in the closing costs and application fees as well as any other additional costs, such as title insurance or an appraisal to be sure.