The Wayback Machine - https://web.archive.org/all/20040810095808/http://www.home-refinance-loans.info:80/refinance_loan_guide.html
Home Refinance  |  New Home Loan  |  Debt Consolidation  |  Home Improvement  |  Mortgage Tools  |  Home

Customers Testimonials:
"When I filled out the short application on home refinance loans, I found the loan rates I was looking for a long time and got a home refinance loan started right away! Thank you for your great service". Jerry B. Ontario, Ca


Home Loan Tools :

Our network of over 1000 home loan lenders and mortgage brokers will be matched with your specific lending criteria, to get you the best possible mortgage and refinancing rate.
























Home refinance loans Guide

How to Get a Mortgage.

step1: Find a mortgage that's right for you.
The most common types are 30-year and 15-year fixed mortgages where the interest rate is fixed for the term of the loan. Other types include Adjustable Rate Mortgages (ARMs) where the interest rate can vary over time, hybrid ARMs, jumbos, assumables and seller financing.

step 2: Determine how much house you can afford.
Consider: equity in your current home (if you own), amount you can put down, monthly payments you can manage, real estate taxes, closing costs, homeowners insurance, and possibly Private Mortgage Insurance (PMI) if you put down less than 20%. Monthly payments on debt obligations including items such as credit card bills, alimony, child support payments, and student loans should not be more than 36% of your pre-tax income.

step 3: Check your credit.
A potential lender will check your credit report immediately. It’s best to clear up any credit problems before you apply for a mortgage. Get your credit report from Equifax (800-685-1111), Experian (888-397-3742) , or Trans Union (800-888-4213).

step 4: Pre-Qualification and pre-approval
If you have not found a home yet, consider getting pre-qualified where a lender will review your financial history before you find a home or pre-approved where a lender will check your credit and provide you with a letter stating that you’ve been pre-approved for a certain amount. Both of these will help improve your purchasing power.

step 5: Gather the necessary paperwork
See the list of necessary paperwork to get an idea of what you’ll need.

step 6: Find a lender
Go to www.home-refinance-loans.info to find a comprehensive list of lenders and updated mortgage rates in your area. Remember that the lowest mortgage rate is not necessarily the best loan for you. In addition to the rate, check on points, (pre-paid mortgage interest which will increase the up front costs), APR, and other fees associated with a given loan. Compare mortgages and talk to several lenders before you apply for your loan.

step 7: Assess you potential home
Hopefully you’ve found you dream home by this time. Be sure to thoroughly evaluate the home to make sure it’s what you really want. An appraisal is part of the mortgage process and will ensure that you are paying the appropriate price for your home.

step 8: Prepare for closing
Make sure the closing is scheduled before your loan commitment and any rate lock-in will expire. And be sure there is enough time to finish any loan documentation and complete any home inspections and repairs.

step 9: Closing day
Congratulations, you are about to own a new home! At the closing you will have to sign legal documents and pay closing costs that could include surveying, taxes, insurance, attorney fees, agent fees, points, loan origination fees, PMI, and balance of down payment.

step 10: Servicing the mortgage
At closing, your mortgage lender must tell you who will be servicing or administering your mortgage loan. Traditionally, the mortgage banker would service the loan for the life of the mortgage on behalf of the investor. However, the servicing may be handles by a third party.

Necessary Paperwork

  • W-2 forms from the previous two years
  • Federal tax returns from the previous two years
  • Recent paycheck stubs
  • Documents showing other sources of income including, second jobs, overtime, commissions, and bonuses, interest and dividend income, Social Security payments, VA and retirement benefits, alimony, and child support
  • A complete list of your creditors, such as credit cards, student loans, car loans, and child support payments, along with minimum monthly payments and balances
  • Investment records including mutual fund statements, real estate and automobile titles, stock certificates, and records of any other investment or assets
  • Cancelled checks for your rent or mortgage payments
Points or lower interest rate? 30 year $100,000 mortgage
Rate Points Cost of Points (paid at closing) Total Interest Comments
6.5 3 $632 $127,544 If low monthly payments are of high priority and you have cash available to pay for points, then pay the points. You may want to invest cash other ways that to pay for points.
7.5 0 $699 $151,717
Tip: Paying points can lower the interest rate, so consider paying more for points if you plan to stay a long time in your home

Economics of Buying a Home
Home Price $150,000
Cash down payment $15,000 (10% down)
Mortgage 135000
Loan APR 7%
Term 30 years
Monthly Loan Payment 898.16
Monthly PMI payment (will vary-approximate) 56.253
Total monthly payment 954.41*
*there may be additional monthly costs such as home owners insurance and real estate taxes
Seller usually pays agent commission. Other costs include: closing costs, agent fees, insurances, legal fees, points, appication fees, etc.

Down the road….

Removing PMI: You should be able to remove PMI once the equity in your home reaches 20% of the property value, either because the loan balance has been decreased below 80% or because your home has appreciated in value.

Prepayment: The motivation for prepaying a mortgage is simple—you save money on interest which can add up to a lot of money. You can create a prepayment schedule yourself or the mortgage services can set up a formal bi-weekly prepayment plan. Be sure to consider the tax implications of prepayment—prepaying reduces mortgage interest which is tax deductible. Sometimes mortgage interest tax deductions are not applicable due to your specific tax bracket.

Refinancing: In today’s fluctuating market you may want to consider refinancing with as little as a 0.5% lower rate if you are planning on staying in your home for a while and find a good deal on refinancing costs. Refinancing involves many of the same steps as an original home mortgage.

About ARMs (Adjustable Rate Mortgages)

  • If you are going to be moving out of the house in only a few years, lower rate ARMs are a good option.
  • After the initial fixed period, most ARMs adjust every year on the anniversary of the mortgage. Some ARMs adjust every three years based in the yields on three-year Treasury securities.
  • On an adjustable-rate mortgage there is usually a maximum annual increase of two percentage points and a lifetime cap of six percentage points. It is best to not that although ARMs can be enticing they do come with some uncertainty. More than 75% of homeowners opt for fixes rate mortgages to avoid any unexpected unpleasant results. It is best to conseider whether you can afford to pay the highest possible payment in a worst-case scenario.


contact us  |   privacy policy  |   about us  |   Affiliate program  |   FAQ