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Refinancing The Mortgage Loan Portfolio Article
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from: How to tell it's the right time to refinanceDeciding to refinance your mortgage can be a tricky task, as you can never be sure if the rates are going to drop further and if you wait, those rates just may inflate which means you missed out on a great deal. The financial industry is a best guess beast which makes it difficult for even experienced financiers to know exactly where the market it heading. So, how can you tell what the right time is to refinance is?
One rule of thumb is that if your current interest rate is not more than two points above the new rate, then refinancing will simply not save you enough money to justify the process. You will have to pay a new closing cost along with other fees such as appraisals and the amount of time it will take to pay that off may not be worth the refinance in the long run. If you plan to move soon then you may not be in your home long enough in order to pay off the expenses that it took to refinance. If this is the case, then it may not be the time to refinance.
There are other instances where refinancing is just simply not wise even if the interest rates are going down at a record rate. A bad credit score may result in not receiving the deal that you are hoping for. In fact, a bad credit score can even carry penalties and additional fees such as the need to purchase mortgage insurance.
If you happen to have good credit, a stable job, and a good history of payment you may want to consider refinancing based on where you live. Sure, interest rates are at an all time low, but if you live in a declining market such as Florida or California, the cost of refinancing will carry heavy fees, such as a hefty down payment. While this scenario may not be accurate for all parts of Florida, California, or other areas facing severe housing problems, it is definitely something to take into consideration.
Generally it is the right time to refinance if you live in an urban area that is seeing significant financial prosperity. If your credit score is over 650 or if your current mortgage, either a fixed rate or an adjustable rate is over 6 percent then now is the time to look into refinancing. Ultimately, the decision is yours. It would be wise to discuss all of your options with your lender or financial advisor before deciding.
Refinancing your mortgage just may save you hundreds of dollars each month, however if you do not act wisely and weigh both the positives and negatives, refinancing will end up costing you more money.
Refinancing The Mortgage Loan Portfolio Specific links
Refinancing The Mortgage Loan Portfolio News
1st-quarter profits up 34% for Iowa banks - DesMoinesRegister.com
1st-quarter profits up 34% for Iowa banks DesMoinesRegister.com Bankers say more people are refinancing their mortgages, thanks to rock-bottom interest rates, driving profit but not loan growth on the books. Loan portfolios at the 343 Iowa-based banks shrank 1.1 percent through January, February and March, ... |
Big banks avoid customer revolt over account, fee changes - Savannah Morning News
Big banks avoid customer revolt over account, fee changes Savannah Morning News The bank's card-related fees fell by $39 million, but the institution saw a $32 million boost in mortgage income tied to historically low interest rates. “We benefited from the mortgage refinance tailwinds, helping us overcome some of the fee income ... Mortgage Rates: Low Mortgage Rates Remain in Place as Consumer Sentiment Soars |
TEXT-Fitch affirms LB-UBS 2001-C3 - Reuters
TEXT-Fitch affirms LB-UBS 2001-C3 Reuters (The following statement was released by the rating agency) May 25 - Fitch Ratings has affirmed the ratings on Lehman Brothers-UBS (LB-UBS) Commercial Mortgage Trust Commercial Mortgage 2001-C3 pass-through certificates. A full list of rating actions ... |
Fortress Seeks Servicing Rights From $4 Trillion Sale: Mortgages - BusinessWeek
Fortress Seeks Servicing Rights From $4 Trillion Sale: Mortgages BusinessWeek By John Gittelsohn on May 23, 2012 Fortress Investment Group (FIG) (FIG), whose funds own 77 percent of mortgage servicer Nationstar Mortgage Holdings Inc., is leading the race for $4 trillion in home loan collection rights as banks exit the business. |
Boom-Era Debt Sparking German Apartment Sales: Mortgages - Bloomberg
 Bloomberg | Boom-Era Debt Sparking German Apartment Sales: Mortgages Bloomberg Refinancing debt in Germany has become more challenging as banks scale back lending as a result of stricter capital standards, the sovereign-debt crisis and the continuing stagnation of Europe's CMBS market. The proportion of German loans parceled ... |