Second Mortgages Versus Home Refinance Programs, Which Way To Go?
Mortgage rates are still at an all time low. So why have 29% of current US homeowners held back from refinancing their homes? 2nd mortgages may be the answer.

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.

Mark Askew SOURCE: PRWEB.COm

Tampa Real Estate