Mortgage Refinance and Credit Repair

Million of Americans have credit problems. Those who own homes can use a mortgage refinance to help with credit repair. Mortgage refinance involves taking out a new mortgage to pay off the original loan. Depending on your equity, the new mortgage can be for more than the amount of the old loan. This money can then be used to for debt consolidation, which can improve your credit rating.

The mortgage refinance business is very competitive. Make sure you don’t get conned by unscrupulous lenders. Jack Guttentag, the Mortgage Professor, cautions, “The refinancing market is something of a jungle, but you are safe if you observe one basic principle: You cannot save money on a refinance unless the interest rate on the new mortgage is below the rate on the existing one.

“Some con artists will show you that your total interest payments will decline if you refinance into their higher-rate loan. However, they get that result by assuming that you will repay your new mortgage (but not your old one) on an accelerated (biweekly) schedule.

“Some others … get (a lower) result by extending the term. If your current mortgage does not have many more years to run, an extension of the term can reduce the payment by more than the higher rate increases it. If you do it, you pay for it big time in the form of a higher loan balance in future years.”

To learn about two other steps you can take to help with mortgage refinance credit repair or to receive a free mortgage quote, visit www.badcreditmortgagerefinancingnow.com, a site that can help you determine if refinancing makes sense for you.

Mike Hamel is the author of three business books and several articles about mortgage financing. His material is featured on sites like www.badcreditmortgagerefinancingnow.com.

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How To Lower Your Payment When Refinancing Your Mortgage

If you are in the market for a new mortgage loan because you need a lower monthly payment, there are several ways to accomplish this. Even if your credit prevents your from qualifying for a lower mortgage rate there are ways to lower your payment amount when refinancing. Here are several tips to help you get a lower mortgage paying without paying lender junk fees.

The most desirable method of lowering your monthly mortgage payment is to refinance with a lower mortgage rate. If your financial situation has improved since you purchased your home you may qualify for a lower interest rate. This improvement could be due to paying down your bills, getting a higher paying job, or even getting married. Remember that even though your mortgage payment has gone down you will not realize a savings from refinancing until you break even from your expenses.

You can calculate how long it will take you to break even by dividing your total costs from refinancing (closing costs, points etc) by the amount your mortgage payment went down each month and dividing by twelve. This will tell you the number of months it will take to recoup your expenses from refinancing the loan.

If you are unable to qualify for a lower interest rate when refinancing your mortgage you can still lower your monthly payment by extending the term length of your loan. This is a less desirable option as it will result in paying more to the lender for financing; however, as a short-term solution it could provide much needed relief to your monthly budget. Term length is simply the amount of time you have to repay the loan and along with your interest rate determines your payment amount. Common term lengths are 15 or 30 years; however; there are now mortgage loans available with 40 and 50 year term lengths.

Homeowners who are able to qualify for a lower mortgage rate could lower their payment amount further by combining both options. Extending the term length with a lower mortgage rate would allow you take advantage of the lowest payment while paying less to the lender for your financing. You can learn more about your mortgage refinancing options, including costly pitfalls to avoid with a free mortgage toolkit.

To get your FREE Mortgage Refinancing Video Toolkit, visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this "Mortgage Refinancing Toolkit," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com

Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com

Refinancing Mortgage Rate

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