Christian Home Mortgage Refinancing
Christian home mortgage refinancing is an available option for the consumer who is looking for a way to save money by getting a better rate on their current home loan or choosing an equity line of credit, cash out refinancing or taking out a second mortgage. The first step in researching this process is to do a search on the Internet. There are many lenders online that offer many options for refinance. Homeowners should research lenders for reputable business practices and opt for a free online quote that will show a comparison by lender on rates. With rates still being low, it is a good time to refinance.
Some lenders offering to refinance advertise no fees. If refinancing fees do apply they will consists of appraisal fees, credit report fees, title fees and taxes. Some lenders charge application fees as well. Compare lenders regarding fees to get the best available deal on home mortgage refinancing. There will also be closing costs to take into consideration. Some consumers consider a second mortgage in order to cover closing costs and down payment costs. A second mortgage may also be a consideration to obtain extra cash for college expenses or paying off high-interest credit cards, depending on the needs of the borrower.
Choices involving home mortgage refinancing may include a home equity line of credit. A home equity line of credit is based upon equity being the collateral for the loan. A cash out mortgage is another refinance option. A cash out means borrowing money thus increasing the house payment, which is usually based upon equity in home. A third option involves taking out a second mortgage. The borrower may wish to use this option for debt consolidation or just to acquire cash for home improvements, etc. Do a search online today and find out about the many options. "And how I kept back nothing that was profitable unto you, but have shewed you, and have taught you publicly, and from house to house". (Acts 20:20)
Many information websites offer services that help the borrower to make a more informed decision. A mortgage calculator will be of assistance in assessing income, monthly payment, early payoff, loan comparisons, loan breakdown and an amortization schedule. These will help the borrower get a better idea about the process to refinance. Verification is necessary regarding proof of income. Recent paycheck stubs as well as tax returns for the last two years are required. Any supplemental income will need verification as well, such as, commissions, child support, alimony, and overtime to approve home mortgage refinancing.
Home mortgage refinance loans make good financial sense whenever interest rates are low. When a homeowner refinances, the old mortgage loan is paid off and replaced with a new one at a lower interest rate. The monthly payment, as well as the overall interest, will likely be lower. With this type of financing, the term may be changed to a shorter length, resulting in saved interest by paying off the debt earlier. Equity can be built much more quickly by changing the term from 30 years to 15 years while substantially cutting the interest paid.
This can also be used to get out extra cash and is known as "cash out refinancing". This will allow the homeowner to get the difference between the old loan balance and the new balance at closing, providing they have adequate equity in the home. A home mortgage refinance loan may not be suitable for every homeowner. For example, if you are 20 years into a 30-year mortgage and refinance for another 30-year term, you will be paying on the home for a total of 50 years. Another instance in which it may not be economical is with a consumer who has poor credit. It is likely that a poor credit history may prohibit the homeowner from qualifying for the best interest rate and refinancing could increase the monthly payment and add to the total interest paid over the life of the loan.
An important thing to remember is that the lender may charge a loan origination fee, which could be equal to 1% of the total amount. Any points paid in refinancing are not deductible on federal income taxes in the year of the refinancing because the amount is amortized over the life of the debt. But, overall, if a comfortable amount of equity has been built up in the home, there are many options to cash in the equity whether obtaining a home mortgage refinance loan or a home equity loan. " I have made, and I will bear; even I will carry, and will deliver you." (Isaiah 46:4)
Another great benefit is consolidating high interest debts into the new home loan, in turn, saving a substantial amount of interest. Many homeowners with 15-year mortgage terms will refinance to a longer term of 30 to 45 years. This lowers their monthly payments and frees up more cash for month-to-month spending. The advantage of consolidating debts into a home mortgage refinance loan is that interest payments may not only be lower, but they are also tax deductible. Refinancing is also an opportunity to lock in at today's rates on a fixed rate mortgage if the original home loan is an adjustable rate mortgage.
Refinancing Your Christian HomeRefinancing your home can be a wise financial move if the homeowner has been diligent to do their financial homework regarding financial goals in light of the current lender market. Whether a consumer wishes to cash out home equity, refinance to save money over the long range or shorten length of loan payments in order to retire debt free, a multitude of lenders offer a wide range of options for refinancing. After determining all financial goals, homeowners will need to determine if lenders will be willing to offer loan options to them.
Those who are considering the refinance process will need to begin by assessing the value of the property and the current equity in the house. Lenders may require a professional appraisal to determine the fair market value as it stands currently. Some lenders may only require a general assessment, based on the typical sale price of homes within that particular neighborhood, when considering applications for refinancing your home. If a professional appraisal is done, the cost can either be paid up front by the homeowner or included within the cost of the refinance package.
Another important aspect to consider, when refinancing your home, is the fact that the value is always somewhat vulnerable to appreciation or depreciation depending upon the current trend in any local community or neighborhood. What is of value today may not be as equitable 5 years from now as well as vice a versa. The size of a house, construction quality, style, and landscaping all affect equity which consequentially affects a consumer's refinancing options. Homeowners can add equity value to a home by giving attention to property details, before refinancing, in order to receive the best possible second mortgage loan.
Lenders are also interested in the homeowner's financial status in order to protect their investment. A good credit rating, personal earning-to-debt ratio and any other client collateral are calculated within all refinancing mortgages. The more equity, better credit, and higher personal earnings make it possible to receive the lowest mortgage rates and the best payment options available. However, many lenders make refinancing your home possible even with a negative financial status, but higher interest rates are inevitable. Always check with several lending sources for free quotes in order to determine the best option. No matter the outcome, be sure to thank God for your home and pray for ways to use it for His will. "Give unto the LORD the glory due unto his name: bring an offering, and come into his courts" (Psalm 96:8).
Refinance mortgage loan packages will allow the consumer to take advantage of low interest rates by paying off an old mortgage and replacing it with a new one at a lower rate, a lower monthly payment and possibly a new set of repayment terms. The individual could change the term from thirty years to fifteen years or something in between. When choosing to refinance mortgage loans, the consumer might also be able to 'cash in' by cashing out some of the equity in the home to use for repairs or improvements and a number of other things. Banks and mortgage companies alike offer many options to those who want to seek refinancing.
In recent years, there was a bit of a craze in refinancing because of the drastic dip in interest rates. Lending companies capitalized on this refinance mortgage loan frenzy and the lending industry was dramatically boosted. Many millionaires were made during this time of increased consumer desire to refinance mortgage loans. This has dropped off quite a bit now and lenders must be very competitive in order to gain new business, whether it is a new purchase or the option to refinance. The current interest rates will not remain this low for much longer. There have already been several increases recently and this is slated to continue in the coming months and years. It is a great idea to choose the option of refinancing if the consumer is in a position to do so.
Aside from saving money on interest, people choosing to cash out equity can get money to put into savings, pay off other higher interest debts, make some home improvements or repairs, or possibly repair automobiles. Home equity is a valuable asset and the consumer can capitalize on it with cash out refinance mortgage loans. The individual will have the cash equity to do whatever is necessary and the interest paid on the refinance mortgage loan is tax deductible. Many people use this money to pay off credit cards to avoid the high interest that normally accompanies them. Most credit card companies will significantly raise the interest rate if the consumer is late on just one payment.
The Christian individual will also have the same closing costs with a refinance mortgage loan as with the first loan that was used to purchase the real estate. There may be origination fees, attorney fees, appraisal fees, and possibly other costs involved. Even with the new set of closing costs, refinance mortgage loans can greatly improve the financial situation. In some situations, especially those that seem wrong or illegal, it is better to keep obligations and debt than to seek to improve financial matters with little or no work. "Better is the poor that walketh in his uprightness, than he that is perverse in his ways, though he be rich" (Proverbs 28:6).