What Term Should I Choose?

Though you end up paying more in interest with a 30-year loan than a 15-year loan, you are generally able to deduct 100% of the interest payments for the term of the loan, thus reducing your after-tax cost. A 30-year loan with a 5.75% rate for



someone in the 35% tax bracket costs 4.26% after interest deductions. With a 15-year loan, the monthly payment would be much larger, thereby significantly reducing your discretionary income. By increasing your monthly payment, you can reduce a 30-year mortgage to a 25-year, 20-year or 15-year mortgage, whichever may be appropriate for you at the time. However, it is important that prepayments be allowed on the 30-year loan. By comparison, the 15- year mortgage is inflexible in that you are committed to the larger monthly payment. Over time, money is worth less due to inflation, which is the rising cost of goods and services. For example, in 1983 a first class stamp cost $.20 and now it costs $.37, an 85% increase. Similarly, by selecting the longer-term mortgage you will pay it off with cheaper dollars.If you elect to invest the savings, the alternative opportunities presented might provide you with a return substantially greater than the cost of your mortgage. If you chose not to invest, then the savings can be used to immediately improve your lifestyle. A middle course can also be followed.

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Why Should I Refinance?

Save Money on Interest Rates Refinancing at a lower rate will reduce your monthly payments. If you plan to stay in your home for a long period of time, these savings could be substantial. Let us look at a very basic example. Suppose you have a 30-year fixed-rate mortgage for $300,000. You originally financed this loan at 7.5% making your monthly payment $2,098 a month. Take this same loan and assume you can refinance to obtain a new loan with a rate of 5.8%. Your new monthly payment would be $1,760, a savings of $338 a month. Convert an Adjustable-Rate Mortgage (ARM) to a Fixed-Rate Mortgage You may have chosen an ARM for its initial
lower interest rate; but if current interest Cost” refinancing. What this really means is rather than pay the traditional up-front fees, you will instead receive a slightly higher interest rate on your loan or a slightly higher loan balance. You are in effect paying for the refinancing costs overthe life of this loan

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Mortgage Refinance

Mortgage Refinance and Home-Equity Loans is the first national curriculum on mortgage refinance and home-equity loans targeted to housing counselors. It can be used to help educate or counsel homeowners through an organized postpurchase homeownership education and counseling curriculum about their options for refinancing an existing mortgage or borrowing money secured by the equity in their home.
Mortgage refinancings boomed in 2002 and 2003. During this period, lower-income homeowners were significantly less likely than higher-income homeowners to seek refinances of their mortgages, even though their mortgages rates were above current levels — sometimes by several percentage points. Many of these homeowners lacked the knowledge of when and how to refinance, and also lacked the savings to pay for related fees. As long as homeowners in underserved communities are locked into unnecessarily high-rate loans, they are losing wealth and assets relative to other populations and communities.
During and since the refinance boom, home-equity loans have also experienced explosive growth. With consumer spending outpacing income growth, and property values rising in many markets, homeowners have increasingly turned to home-equity lending as a substitute for consumer credit to finance new consumption or reduce outstanding consumer debt.
NeighborWorks America developed these materials to fill the void in nonprofit consumer education programs on mortgage refinance and home-equity loans. We recognize the important role refinance and equity loans can and do play for homeowners. This curriculum can be a useful tool for trainers and counselors to help lower-income households manage their home equity effectively and maximize their potential for building personal wealth.

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Why Refinancing your Home Loan?

Many people are refinancing their home mortgage in order to save on interest rates. Bankers often call it “renewal your mortgage” because you actually
dealing with new loan and want to get rite of old “high interest” loan to save money. Many people don’t understand how refinancing work, talking with
your banker on the phone sign in few papers in the branch does not help you in refinancing your loan.


So what is refinancing in reality?


Refinancing is using for getting access to the equity in your property. Refinancing is a necessity for many people because refinancing gain access to extra money for the house or other expense. People want to use some of home equity that has built up in their property. This means that owners need to negotiate with a banker for a new mortgage with“cash back” at a higher amount than they had before. Another reason why people refinancing their interest rate on their mortgage is because they have variable interest rate that change very often or have high interest rates on their loan. If you negotiated a mortgage when your credit rating was not as good, and you have repaired your credit now through a good track record of payments, you
should certainly refinance but before you refinance you need to be sure to check your credit report from Trasunion, Experian and Equifax to make sure you have your credit “Up and running” say Vice President Adam Naas from Joe Investment, Inc. In a volatile interest rate market where rates are dropping and you are locked in at a much higher rate, it can be to your advantage to pay those penalty clauses and get yourself a better interest rate.Your best reason to refinance is to lower your interest rate and lock with fixed interest rate. With those kinds of economy and recession it is better to refinancing with fixed interest rates that do not change until you pay off your home mortgage or until you refinancing your mortgage again. Of all the
reasons to refinance, this is one where you are going to benefit without a doubt. If you are carrying a lot of credit card debt and are finding yourself in over your head, refinancing can get you out of the hole and in position to turn your financial situation in good shape. Regardless of the reason that you are looking at refinancing, you should weigh all the pros and cons carefully. Always check your credit report before refinancing so it will save you thousands of dollars by improving your credit score and your credit report.

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car loan refinancing

Are you currently interested in how to refinance your car loan? To refinance your car loan means to inject fresh funds by taking on additional loan to refinance your existing auto loan. This is beneficial for many different reasons. By taking on car loan refinancing, you are able to take advantage of lower interest rates, lower monthly fees, even an improvement in your existing credit score.
There are probably hundreds even thousands of car refinancing packages and options available. Those packages are targeted for different types of customers with their own specific needs. The more time you can spend researching the alternatives, I can guarantee the better refinancing option you will be able to find. I know how inconvenient and tedious trying to shop around for the best car loan refinancing deal can be. I've done it myself several years back. Fortunately the Internet allows us to shop around compare and contrast the different companies and different packages quickly and inexpensively without having to personally visit the refinancing companies.That really saves you a lot of time and energy.
If you truly want to sign-up with the utmost best car loan refinancing package which caters to you specifically? Visiting a car loan specialist or advisors (more often than not a free service) you can at least be pointed in the right direction and is highly recommended. Do however realize that they may try to sell you a package that may not be to your best interest necessarily. Therefore before we go there...
Really determine your ideal outcome for the very thing you want to achieve by taking on a car loan refinancing policy. Others suddenly realize they can't make the monthly payment on their existing debts and finally decide they need help. In order to get lower monthly charges on their car loan, they take on another loan that extends the debt on a longer-term period, which is what loan refinancing is. The disadvantage to this is the borrower ends up paying more overall. The advantage is that it's barely noticeable because the debt is extended for several decades sometimes up to 30 years.
Some folks take refinancing primarily to improve their credit ratings or take advantage of a glitch or sudden financial opportunity. These people would not have any concerns about the monthly fees, and would generally opt to get the whole debt paid as soon as possible.That means they'll choose to pay higher monthly fees, and lower total cost.
Others still, just choose to refinance their loans for the convenience it brings. Refinancing your car loans or taking debt consolidation allows you to escape the stress and harassment put on by these debt collection agencies. That in and of itself is enough motivation for some to get these services. Others on the other hand just enjoy the convenience of paying everything with one bill, instead of multiple-bills from a dozen different companies, which can be a headache to juggle! Considering the amount of time and energy that taking on this service, the savings it affords them? The additional interest charges just become negligible in contrast to the benefits they get.
The above are just general examples of benefits why anyone would want to refinance their existing (car)loans. There are infinite number of other reasons how it can greatly benefit you, and you specifically. Which is why taking the time to really investigate and study all the car loan refinancing options and packages from different providers, really does pay off and potentially can save you hundreds maybe thousands of dollars!

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Students loan refinance

Finding Lenders Who Will Refinance Student Loans

If you currently have student loans through a private lender and are looking to refinance, start with that lender to see if they can offer you better terms than what you currently have. Since you have already established a history with that lender they may be willing to work with you. You can also identify other lenders by doing an Internet search to find those private student loan companies that will work with you. When working with a private student loan company, there are a number of criteria that must first be met before any student loans can be refinanced.

These include:
1. Already having privately funded student loans.
2. Have at least $5,000 in private student loan debt.

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Advantages

Refinancing may be undertaken to reduce interest rate/interest costs (by refinancing at a lower rate), to extend the repayment time, to pay off other debt(s), to reduce one's periodic payment obligations (sometimes by taking a longer-term loan), to reduce or alter risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to raise cash for investment, consumption, or the payment of a dividend.
In essence, refinancing can alter the monthly payments owed on the loan either by changing the loan's interest rate, or by altering the term to maturity of the loan. More favourable lending conditions may reduce overall borrowing costs. Refinancing is used in most cases to improve overall cash flow.
Another use of refinancing is to reduce the risk associated with an existing loan. Interest rates on adjustable-rate loans and mortgages shift up and down based on the movements of the various indices used to calculate them. By refinancing an adjustable-rate mortgage into a fixed-rate one, the risk of interest rates increasing dramatically is removed, thus ensuring a steady interest rate over time. This flexibility comes at a price as lenders typically charge a risk premium for fixed rate loans.
In the context of personal (as opposed to corporate) finance, refinancing a loan or a series of debts can assist in paying off high-interest debt such as credit card debt, with lower-interest debt such as that of a fixed-rate home mortgage. This can allow a lender to reduce borrowing costs by more closely aligning the cost of borrowing with the general creditworthiness and collateral security available from the borrower. For home mortgages, in the United States, there may be certain tax advantages available with refinancing, particularly if one does not pay
Alternative Minimum Tax.

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