Search
Recommended Sites
Related Links






   

Informative Articles

Are you tired of Tenants, Toilets and Trash?
=========================================================== Wouldn't you rather go to Tahiti? Are you a landlord with rental property whose value has significantly appreciated? Are you ready to cash in those profits and take that trip...

Cutting Edge Real Estate. Is There Anything New? Part 1
Cutting Edge Real Estate Is There Anything New? Part 1 By Tim Phelan The world of real estate has pretty much stayed the same for decades. It's no different today than it was 50 years ago. The basic principles will never change. Is this true?...

How Value-Based Trusts Encourage Good Behavior
"value-based" features in family trusts which link a beneficiary's conduct to his or her access to family wealth. Policy wonks have long debated the merits of tax policy as social policy. It's true, for example, that "sin" taxes on tobacco and...

Key Terms to Know When Selling a Home
There are many important home selling terms to know when the time comes to put that sign in the yard. The real estate market can be tricky, and costly if you make a selling mistake. There is so much to know: legal/real estate terms, contracts,...

The Benefits Of Incorporating Your Business
What do General Motors, Microsoft, AT&T and many other major businesses in America have in common? They're corporations. A corporation is a separate legal entity that functions separate and apart from its shareholders or owners. You can...

 
Bad Credit Home Mortgage Refinance - Should You Refinance

A bad credit home mortgage refinance is possible for people with previous credit problems. The interest rates will not be as low as those for consumers with good credit but you can still end up saving in the end.

There are several questions you should ask yourself when considering a home mortgage refinance. First of all you need to access your credit situation. If credit has been a problem for you in the past, you will want to take control of your finances before applying for a mortgage refinance loan. Refinancing can either help or hinder your current situation.

You will need to calculate all of the costs involved in refinancing before making a decision. A lower rate of interest and a shorter loan payoff time are two desirable perks of refinancing. Some people are only interested in lowering their monthly payment amount. However, you will need to remain in your home long enough to reap the benefits of refinancing. It makes no sense at all to refinance your home if you plan on moving within a few years. It is a good idea to figure how long it will take to recover the costs of refinancing. Some loans may offer a lower rate of interest but have excessive closing costs and fees. You will want to be aware of all costs involved including any additional income taxes you may be charged.

The Two Percent Rule

The two percent rule refers to your existing mortgage rate compared to current rates of interest. Many lenders recommend that you refinance if you can obtain an interest rate two percent less than your current rate. This is just a general rule and should not be the only deciding factor. Often the time you intend to remain in the home is just as important as the lower rate of interest.

On average the costs of refinancing will be at least three percent of your mortgage loan. This is a lot of money to spend and you will want to make sure you will be able to recover these costs when refinancing. If you are making payments on your first home and plan on buying a larger home in the future, a drop in the current interest rates may be the perfect time to purchase a new home. If you can obtain more home space for about the same price, this may be a desirable option.

About the author:

View our recommended Bad Credit Mortgage Refinance lenders or view all of our Recommended Refinance Lenders.

Sign up for PayPal and start accepting credit card payments instantly.