| ="body"> | | | | fees, legal fees, points, and closing costs. |
| Refinance NOW--before it's too late | | | | If you don't have cash on hand to pay fees, you can |
| If you haven't found the time to refinance your existing | | | | get them tacked on to the mortgage, paying nothing |
| home mortgage, it's time to take action--like yesterday! | | | | out of pocket for your refinanced home mortgage. |
| Every time Alan Greenspan, Federal Reserve Board | | | | If you refinance and shorten the term of a home |
| Chairman, opens his mouth, you can bet that the | | | | mortgage, you will pay a higher monthly payment, but |
| federal funds rates will rise by at least a quarter of a | | | | you'll save a significant amount of money over the |
| point, or by 25 basis points in investorese. What that | | | | term of the mortgage in addition to paying off your |
| means to you is that home mortgages will rocket as | | | | home and building equity faster. |
| well. | | | | Standard mortgage terms run 15 years or 30 years. If |
| A quarter of a percentage point may not seem like | | | | you'd prefer a term somewhere in between the |
| much, given that the federal funds rate currently | | | | standard terms, ask for a custom loan and designate |
| stands at 2 ¾ per cent, but a reality check | | | | a term that works better for you. Find a term that |
| quickly reveals that you, personally, have probably | | | | strikes a balance between a term shorter than 30 |
| never seen 2 ¾ per cent interest on anything in | | | | years and monthly payments lower than those of a |
| your lifetime. Take a look at your credit card | | | | 15-year mortgage. |
| statements. Are you paying 2 ¾ per cent on | | | | If you cannot get a custom term, settle for a 30-year |
| your credit? What about your home mortgage? | | | | mortgage and pay more than the monthly payment to |
| Without getting technical, there's little correlation | | | | pay off the loan sooner. You must also negotiate no |
| between the federal funds rate and home mortgage | | | | pre-payment penalty. |
| rates except the direction in which they travel, and | | | | Where to go from here |
| right now that direction is headed to the sky. | | | | 1. Review your credit record with each of the three |
| You've already missed the opportunity of a lifetime to | | | | credit bureaus: Equifax, TransUnion and Experian. |
| lock in the lowest rates you'll see for the foreseeable | | | | Mistakes are common in credit reports, and you may |
| future, but you have a little more time to get your | | | | be surprised at what you find: accounts that do not |
| hands on relatively cheap money. The window of | | | | belong to you, balances that do not match your |
| opportunity is rapidly closing, so if you're going to | | | | statements, an identity mistake or worse. Correct any |
| refinance, you must do it as soon as possible. | | | | bad information. |
| Things you may not know about refinancing: | | | | 2. Compare mortgage rates and fees online among |
| A small rate cut can pay off handsomely in smaller | | | | several finance companies. |
| monthly mortgage payments. | | | | 3. Use a good mortgage calculator. Using refinance |
| Smaller monthly mortgage payments will decrease | | | | calculators is the only way to determine which loan is |
| your tax deduction, because you will no longer be | | | | the better all-around deal. |
| paying as much interest as you've been paying. Factor | | | | Work fast, but negotiate hard to make a deal that |
| this in, because it's the total savings that matters. | | | | works for you. The loan company wants your |
| You can and should ask to have fees waived or | | | | business as badly as you want a better rate. |
| reduced: application fees, origination fees, appraisal | | | | |