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Mortgages Versus Home Refinance Programs,
Which Way To Go?
Mortgage rates are still at an all time low. On
average about 70% of all mortgage applications submitted the past
six months were for home refinancing.
Statistics indicate that 29% of current homeowners
in the US have not yet refinanced their homes. Part of the reason
some have not applied for refinancing is the desire to hold out
for lower rates. But will mortgage rates actually get lower?
Of the 60 economist recently surveyed regarding
the current economic situation, most believe the economy will
improve. If that proves to be so those holding out for better
rates may be in for a major disappointment.
A percentage of current home owners who have not
opted to refinance their homes may be oblivious to the fact that
they may be needlessly paying thousands of dollars a year on mortgage
payments.
Still another percentage are overwhelmed by the
preparation involved in finding and gathering all the documents
and data required to apply.
Mark Askew, founder of Financial Marketing Network,
Inc., an internet based consumer friendly loan lead acquisition
resource, believes many of those holding back are looking closely
at 2nd mortgage loan options. "And for good reason",
says Mark. "Lets say you want to do some home improvement
work on and want to tap into some of your equity to fund the project
but don't want the added expense of refinancing seeing that your
rates are already low. Your alternatives are either an equity
loan or an equity line of credit."
Yet fluctuating mortgage rates and receding refinance
activity have left a significant number of potential applicants
hesitant to follow-through with any kind of loan request process.
Some just haven’t discovered the time and cost effective
methods to shop lower rates, interview lenders and compare offers,
although these days much of this can be accomplished easily online.
Regardless of the reasons no one has money to burn.
That said homeowners do well to set aside time to determine if
they are in a position to save thousands refinancing or if funds
are needed, take out a second mortgage.
Mark Askew encourages its users to put all their
ducks in a row now instead of later. “Get prepared now”, says
Mark, “Whether you’re refinancing, purchasing a home or considering
a second mortgage be prepared with all necessary documents before
you sit down to your computer to apply for rate quotes or a loan.
Gather all bank statements for the last three months; account
statements, including stock brokerage accounts, most recent pay
stubs, W2 forms for the past two years.”
For self-employed individuals locate the last two
years of tax returns plus a profit-and-loss statement for the
year to date.”
Consumers seeking faster more efficient refinance application
and processing can now take heart. Online lending marketplaces
offer shorter forms while some have no doc programs.
With home refinance applications reaching lower
proportions and lenders now able to catch up on a backlog of loan
applications, current applicants have a better chance of meeting
the targeted loan funding and disbursement date. This can save
significant amounts in loan costs as loan processing and closing
are completed with-in the rate lock period.
One of the advantages of the online refinance loan
process is that the consumer can choose from a number of local
and national lenders willing to compete for business. That can
mean lower mortgage rates, incentives and lesser fees.
When shopping for a loan www.refinanceloanrates.com
reminds shoppers to remember these helpful tips.
1. Don't accept the first or second loan offer.
2. Let lenders know if someone gave you a better
offer and let them WIN YOU OVER.
3. Next, check rate trends and calculate loan rates
and payments according to the lowest rates offered. Firmly hold
to the lowest rates within your reach.
4. Don't give the impression that you absolutely
must have this loan now. Your greatest bargaining position is
not desperately needing the product being offered.
5. Ask about fees up front. Use the amortization
calculator to figure in fees, insurance and tax payments.
6. Take advantage of free quotes, calculation tools
and financial resources here.
7. Consult with your mortgage professional to see
if these programs will work best for you.
Financial Marketing Network, Inc helps home owners
across the country find time effective ways to shop low rate home
loan programs online. The "Network" is based in Baltimore
Maryland.
Helpful financial resources.
www.RefinanceLoanRates.com
www.bcpl.net/~ibcnet
www.HomeLoanApplications.com
Mark Askew
RefinanceLoanRates.com
SOURCE: PRWEB.COM
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