Refinancing - Best way to measure costs and gains

Refinancing is a term in the finance industry that refers to the process of paying off a current or present loan with a second loan. If the situation is right, refinancing can be very beneficial for those who engage in it. So how do you know when the situation is right for refinancing?

First thing's first, refinance only works if the interest rates are low. If they aren't, then refinancing is out of the question. The goal is to save you lots of money which you would have used to pay off your monthly recurring bills on your current loan. With refinancing, there is the possibility that this monthly repayment amount will be reduced since the rates would be considerably lower.

However, interest rates are very fickle. They vary in accordance with the changing economy. So it can therefore be assumed that interest rates are never low for long periods and neither are they high for long durations of time. Because of this inherent flexibility of interest rates, refinancing may not always be beneficial to people. For home owners with second mortgages, mortgage refinancing may backfire. The same goes for those people with a lot of debt or those having trouble paying their bills on time. By refinancing, they may end up paying more than when they stick to the loan they already have.

What is the best way to measure costs and gains from refinancing?

Now, that you have learned when the best time for refinancing is, which is when interest rates are low, the next question that you would need to find the answer to is: What is the best way to measure costs and gains from refinancing?

As stated earlier, there are advantages and disadvantages to refinancing. The trick is to have foreknowledge of what you're in for. For some, the best method to find out what the gains are in refinancing is by comparison.

Compare all costs of your current loan and a new mortgage over a future period. Since the loan period may vary according to how steadfast you are in paying your bills, just make the best guess as to how long you will have the new mortgage. If the total costs are lower with the new mortgage, then you should refinance.

How to Avoid Mistakes in Refinancing

To be sure, the benefits of refinancing are astounding, provided that the situation is ripe for a mortgage refinance However, because of these perceived great benefits of refinancing, many people have the misconception that refinancing won't cost them money. Just for the record: Refinance is just like any other loan and of course, it will cost you money. What makes it stand out is the fact that it can cost you less compared to most other loans.

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ABOUT THE AUTHOR

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Best Hard Money Bridge Loans Explained

What you need to know about hard money bridge loans - This form of credit is not for every one hopefully this article can elaborate. When weighing up lending companies a major factor is the lenders interest rate payable. The main area you should be concerned about though is the reason why you need a hard money bridge loan and whether getting one is going to solve your property problem. You need to compare the costs with the benefits of getting the finance now!

Let us now explore various times when you may need a bridge loan. Times you could use a business bridging finance loan are listed below :

Circumstance 1 - A business needs to raise cash fast - In this instance a business may need to buy out a competitor or expand it's existing business and it doesn't have time to wait for a commercial mortgage or business loan. Bridging finance can normally be raised in as little as 2 or 3 days.

Circumstance 2 - A company needs to purchase stock - If a companies liquidity is low and it doesn't have enough to buy a bargain lot of stock then hard money bridge loans can be used a temporary financial fix.

Circumstance 3 - Purchasing a property at auction - With land and property auctions it is normal that transfers of funds take place very shortly after an auction ends. If you have no commercial mortgage or loan in place then bridging finance is a perfect short term solution.

Circumstance 4 - Venture capital - Many entrepreneurs us this type of credit to take advantage of deals where money is needed now not in a couple of weeks. Because of the speed that these loans can be arranged in they are perfect for this type of application.

Circumstance 5 - Any legal reason - If you have another use for commercial, domestic or any reason whatsoever then you'll be glad to know that you can use this type of credit for any reason provided that it is legal.

From the above you can see the kind of uses for hard money bridge loans, but the uses are as varied as the people who need the finance. The best thing to do next is to get quotations for bridging loans if you think one could help you. On the footer you can find links to a site which offers cheap bridging loans for all circumstances.

Lets now explore the price an example for a loan for the sum of £100000 at a rate of 1% per month would cost you £1000 for a 1 month period. Many factors such as security offered and a customers risk profile can give a lower or higher rate. Interest rates vary depending on the security offered and your credit file.

Many people don't apply for hard money bridge loans because they expect to be rejected, or have already been turned down by their bank. You may be surprised though as we can accept applications from people with previous bankruptcies.

If you think a bridging loan could help you then visit Bridge Loan

Damian is the owner of many finance related websites. Including mortgage, loans and debt advice. For more information visit Bridge Loan

44 comments | Posted in » finance, loan    

30 Year Fixed Rate Cash Flow Option Refinance

The Pay Option ARM mortgage has become one of the most popular home loans in the USA, and is definitely the fastest growing option in high cost states like California, Florida, New York, New Jersey and Connecticut. While many people love the start rates which can be as low as 0.25%, there are a lot of people who don't feel comfortable with the possibility of their payments increasing in as little as 1 month on many of the most common programs. The common wisdom is that Option ARMs are incredible products for savvy homeowners and investors, but may be too powerful for the average homeowner to handle. With all of the turbulence in interest rates and the mortgage sector in general this year, Adjustable rate mortgages may be too risky an option for most borrowers, and many are looking for ways to lower their payments and at the same time fix their rate to weather the storm. Since Fixed Rates usually mean higher payments, many homeowners are left wondering what the best thing is to do.

Introducing Hybrid ARMs

An innovative new category of loans has been recently introduced for homeowners who want the security of a Fixed Rate mortgage, with the flexibility and exceptionally low payments of an Option Arm. These home loans go by many names, including Hybrid Option & Fixed Option Arms, but they have one thing in common: A fixed payment for several years. Some of these mortgages have fixed interest rates, some of them have fixed minimum payments which don't go up, and some of them have both!

So what are the key benefits of Hybrid ARMs?

• Fixed Minimum Payments for 1, 3, 5 or 7 years
• Fixed Interest Rates for the Full Term on Many Programs
• Minimum Payment is typically 55% lower than a Regular Loan
• Increased Cash Flow, Decreased Risk Makes Housing Affordable & Secure
• Interest Only Payment Option Continues Even After Recast
• Greatly Reduces the Sticker Shock of a Fixed Mortgage
• Greatly Reduces the Payment Shock of an Adjustable Mortgage
• Controls Negative Amortization
• Retains Flexibility of an Option ARM

1. Minimum Payment
2. Interest Only Payment
3. 15 Year Fixed Amortized Payment
4. 30 or 40 Year Amortized Payment

• Fixed Rate for 30 Years
• Interest Only Payment Options for up to 20 Years
• Ability to Defer Interest like the Pros
• Usually Stated or No Income Verification Requirements

Tristan Hunt is a seasoned financial professional with a wealth of experience in the mortgage business, advising clients on their biggest single investment at Refinance One, one of the nation's leading specialty mortgage companies.

Phone: (800)515-8443
Email: Customers@RefinanceOne.net

Favorite Topics Include: Adjustable Rate Refinance,Fixed Rate Refinance & Fixed Rate Cash Flow Mortgages

2 comments | Posted in » cash flow, finance, fix rate, refinancing    

Your Ticket To Financial Freedom

Now days it is nearly impossible today for the average family to thrive on a single income. However, the skyrocketing cost of child care makes it difficult for both parents to work. Fortunately, the internet has made making money online a suitable income option without the need for commuting or day care.

Making money online means much more than entering contests and sweepstakes; it is not uncommon to see a professional create a home business in computer programming, accounting, medical billing, and many other fields. Making money online has never been easier! All that is required is a computer, a reliable internet connection, and an idea.

Often times, the most challenging task involved in making money online is coming up with the perfect idea. We're not all computer programmers, web developers, or content writers. However, we all have some talent or skill that others will pay for. Making money online is as simple as figuring out what you do well and deciding how to leverage that talent into an opportunity.

For example, a friend of mine had little computer experience, but was interested in making money online. I suggested that she think about what she enjoyed doing and using that as the basis for her home business. She said that her greatest skill was the creation of unique homemade jewelry items. She hired another home business professional (a web designer) to build a website for her and she is now making money online selling her jewelry creations.

Making money online by starting a home business is not the daunting task that many budding entrepreneurs assume. If you carefully consider your skills and talents and figure out how to leverage those abilities on the internet, you'll be making money online in no time!

About the Author:

Vincent Murphy can help you to find the best home based business ideas andopportunities so you can work at home visit: http://www.HomeGrail.com

1 comments | Posted in » finance, financial, financial freedom    

Homeowner Loans - The Types And Differences

Homeowner loans or mortgages come in two basic types. There are fixed rate homeowner loans and adjustable rate homeowner loans. These terms refer to the interest rate applied to the loan.

Both types of loans have pros and cons. Before a person decides on which type of homeowner loan to get they should understand each type so they can make the best decision for them.

Fixed rate loans have a locked in interest rate. When the loan is made, the current interest rate is used for the life of the loan. The biggest advantage to this type of loan is that the monthly payment amount will not change.

However, if the rate locked in at is rather high then in the long run the homeowner will pay a lot for the loan. Fortunately, there is the option of refinancing when interest rates fall. This does involve more paperwork and can include additionally costs. Some people may not prefer this option due to these factors.

Adjustable rate loans have an interest rate that changes as the interest rates change. With this type of loan the monthly payment will change. The homeowner will not ever know exactly how much they need to pay until the due date.

The good point about this type of loan is that they allow the homeowner to take advantage when rates drop right away. However, if rates suddenly rise the homeowner is stuck with them.

Some people prefer to start with an adjustable rate if the market has been steadily falling. Once they reach a comfortable rate they then switch to a fixed rate loan so they can lock in at the lowest rate possible. Some people go with a fixed rate loan and simply refinance whenever the rates fall drastically.

The choice between a fixed rate and adjustable rate homeowners loan is something that should be made carefully. Lenders have created homeowner loans that combine aspects of both types of loans to try to entice buyers. Mixes loans may start out as fixed and turn to adjustable or start out adjustable and turn to fixed.

They may offer a fixed rate at a discount for a few months and then lock in at the current rate after that initial time period. These types of mixed loans are really a sales tactic, but they can prove to be very helpful for a person who is unsure which type of homeowner loan to go for.

Homeowner loans can be very confusing, especially when it comes to interest rates. The whole idea is to choose the loan that will cost the least. However, with interest rates changing all the time it is often hard to figure out just what the best rate is.

One of your options is to find a good mortgage broker, ask your friends and family if they can recommend one to you. Using a mortgage broker will make your life a lot easier, saving you both time and money.

They will be able to look at your requirements and circumstances and go away and find a homeowner loan that best fits your criteria. They will charge you a fee, but in long run you will save money.

About the Author

43 comments | Posted in » finance, home loan, personal loan, refinancing    

7 Steps to Creating Wealth Now

Profits are like babies, easy to conceive but hard to deliver. However, once you learn how profits are attracted you can deliver them over and over again. You can even do this from the comfort of your own home.

What is it like to work from home earning huge profits? Well, it gets boring at times. You may be wondering, what do you mean it gets boring? You see the key to earning a six-figure income is to know how much you need to make each day. Once you know this you can set your daily goals.

For example, imagine you want to earn $100,000 in a year trading. There are approximately 250 trading days or work days in a year. In other words, you have 250 days in a year to work in which to earn $100,000. If you divide $100,000 by 250, you will see that you must earn $400 each day or $2,000 a week to make $100,000 a year. You can break this down to where you determine the amount for the month as well.

Once you have determined how much you need to make daily or weekly the next step is to look for investments that will get you to your goal in the quickest manner. As you look through your investments options, you are looking for what will be moving.

This is kind of like jumping on a train that is going your way and is going to get you where you want to be on time. You do not want to be on a train that is moving too slow and will make you late. The same is true when you are investing. You want something that is moving and will get you where you want to be, either on time or early if possible.

After you determine your investment(s), you must now take action. Call your broker and give him or her your instructions for the day or week, including when to take profits and what to do to minimize any losses, should they occur. This way you do not have to spend all day looking at a computer or watching your investment(s).

Did you notice that you set the amount of money you are willing to lose, if things did not go your way? This is essential to becoming a highly successful trader. No one wants to lose money so, if losses occur you want them to be as small as possible.

Also by knowing in advance the most you could lose, it helps make the experience more enjoyable. This is because you are not worrying how the investment(s) is doing. You know at the very least you will walk a way with a minimal loss. This is how fortunes are made because it takes the emotion out of investing.

The entire process takes less than 30 minutes a day. You then have the rest of the day to do as you please. This can get boring because most likely the people that you want to spend the rest of the day with are at work hustling for money and barely getting by.

They are at jobs where they are not appreciated and drastically under paid. If only they would take the same steps you did. They would soon realize that sometimes you get notified an hour or two later letting you know that your daily or even weekly profit objectives have already been reached.

I have summarized these strategies into seven tips I call, Dave Diamonds ™. They are as follows:

Dave Diamonds ™

1. Know your daily goals

2. Look for what is moving now

3. Determine your path

4. Take action

5. Limit your exposure or risk

6. Know when to take profits

7. Bring other people along for the ride

1 comments | Posted in » financial, financial wealthy, Personal Finance    

Mortgages For Old Timers

James Copper is a mortgage broker with over 30 years experience. He works for www.any-loans.co.uk as a secured loan advisor. In his spare time he writes on all things financial.

10 comments | Posted in » finance, mortgage, personal loan, refinancing    

Bridge the Gap Between Need and Fund

In order to bridge the gap between the fulfillment of a personal need and the required fund, the UK financial market offers personal loans. These loans are in great demand, as one can avail them for any personal need. Hence, more and more lenders are devising favourable personal loan deals.

Since all type of people face the necessity of borrowing money in some or the other phase of life, personal loans are made available in both secured and unsecured form. While the homeowners are eligible for taking the secured one, others are provided with the unsecured one. Both types of loan have their respective merits and demerits.

A personal loans taken against the home of the borrower places the lender at least risks regarding money recovery. He has the solid assurance of cash return due to the attachment of the collateral. So, he reciprocates by facilitating the borrower with the following advantages:

Easy approval, even with bad credit record
Comparatively lower interest rates
Bigger loan amount
Extended repayment term
Easily affordable repayment premiums

If homeowners have a reason to rejoice for being awarded with some gainful benefits then tenants also do not have any reason to regret. Unsecured personal loan, meant for them, have some unique benefits like:

Risk free option of raising necessary funds
Relatively quicker processing
No property valuation fee
Simple documentation

Borrowing money to cater to a financial urgency is an age old tradition. And so is the consequent failure. Many people cannot repay a loan properly due to other emergencies. Negligence works in case of some other people. Whatever may be the case, it is not only the lender who is at the receiving end. The borrower also builds up bad credit record and cripples his personal finance. So, it is recommended to prepare proper plan to pay off personal loans and stick to it thereby to avoid failure.

4 comments | Posted in » finance, financial, Financial Management    

Unsecured Loan- No Guarantee Required

Whenever finances fall short, borrowing is the first thought that occurs to us. But, there remain many apprehensions in the mind regarding the loan deals. Most borrowers are lured by the idea of unsecured loans and fear taking secured loans that require an underlying asset or collateral.

In case of unsecured debts, the creditor lends money on the basis of the credit profile of the borrower and doesn't demand the home as security. For this reason, unsecured loans carry more risk for the lenders that they compensate by charging a high rate of interest and less flexibility in terms of repayment options.

Cited below are some of the characteristic features of unsecured loans.

15 comments | Posted in » finance, loan, refinancing, Unsecured Debt Consolidation Loan    

Debt Consolidation Loans Make your Debts Easily Manageable

The hassle of unmanageable debts is not wanted by anybody. It hampers the mental peace of a person and blocks the financial self. So, it is necessary to take timely steps to get rid of unmanageable debts. But, there is no measure that can help you efface your debts overnight. Of course, if you suddenly get hold of huge cash to pay off your debts then it is different. Otherwise, you have to use the traditional method to make debt management easy and finally pay it off.

One effective method of easy debt management is the use of debt consolidation loans. Under this method your multiple debts will be converted into a single loan. This will give you freedom from dealing with more than one lender. It will not be necessary for you to distribute your monthly income to various creditors. Instead, you have to make only one payment to a single lender.

Moreover, the repayment term of your debts will be stretched over a longer duration of time. So, your bigger monthly instalments will be replaced by relatively smaller premiums. Thus, every month all your income will not be spent in making repayments. Rather, you will start saving some money in each month. If you search thoroughly then you may also get consolidation loans at lower interest rate. This will help you save good sum on the overall debt repayments.

However, if you do not get debt consolidation loans at lower rate then you may end up paying a little extra cash. This is because you have to pay interest for longer time. This method of making debt management easy can be used by both homeowners as well as tenants. Tenants can take it only in unsecured form. But homeowners can avail it in both secured and unsecured form. Both forms of debt consolidation loans have their respective merits and demerits.

1 comments | Posted in » Bad Credit Debt Loan, Debt Consolidation Loans, Debt Consolidation Secured Loans, Unsecured Debt Consolidation Loan