Ask the Expert: When do I Refinance My Home?

Home refinancing is a wonderful financial tool for homeowners to use for debt management to investments. If the home refinance is used correctly, wisely, and at the right time, the benefits from the refinance can improve the financial picture of the homeowner. There is no cookie cutter approach to refinancing. Each individual or family has their own unique set of circumstances. Here are some common questions homeowners often ask when they are considering refinancing.

What is the most critical question to ask myself when refinancing a home?

Is refinancing going to put you in a better position financially? Will refinancing reduce your monthly expenses, meet a critical family requirement, or improve your investment portfolio? If the answer is yes, it is probably a good time to refinance.

What is a cost benefit analysis?

This is a detailed account of the actual cost of refinancing and helps provide the best financial decision. Cost-benefit analysis analyzes the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs When you look at the actual costs of refinancing, determine how long it will take to recoup costs. Is it worth it? A qualified mortgage professional should review your alternatives and help you determine if the benefits outweigh the near and long term costs. The rule of thumb regarding the cost vs. benefit of refinancing is that you need a 1- 2% "spread" between your existing interest rate and today's current rates. Refinancing, No Cash-Out option can reduce your monthly mortgage payment or reduce the remaining term of your loan and thus probably save tens of thousands of dollars in interest over the long-run. Cash-Out withdraws cash (reduces equity) for home improvement, educational tuition, debt consolidation or for such purchases as a investment property or second home, auto, or other major purchase.

How often should I refinance?

Some people refinance frequently but a rule of thumb should be that you have held the property for one year. Refinancing allows the homeowner to use the home to conduct transactions that allow opportunities and possibly enhance the homeowner's asset pool or reduce the financial short-term burden of the homeowner. How the homeowner approaches the refinance is critical to long-term financial net worth. If the homeowner is utilizing the home as a second checking account to payoff consumer debt, financial stability for future years is reduced through ineffective money management by reducing the homeowner's equity. The ability for the consumer to build equity is in essence a long term subtle retirement plan for the homeowner.

What are some questions I can ask the mortgage company or the bank handling my refinancing?

The scope of financial knowledge a mortgage consultant or loan officer possesses matters in this transaction. This person should have a thorough knowledge of money and how it works. Begin by asking about their professional credentials. The best mortgage professionals will have formal business education, professional experience in the financial industry, and the institutional knowledge to place you in the right product. At Breakwater Mortgage in Virginia Beach, we select our mortgage consultants, loan officers, and loan originators based on strengths in these areas. Often lenders, banks, and other mortgage companies do not conduct a detailed review of potential employees that will handle your most important asset. Ask your mortgage professional why they are recommending a certain loan product to you. You should also feel free to ask personal questions such as: Do you own a home? What type of mortgage do you have? What is your credit score? The answers will reveal information about their money management. If you do not feel comfortable with your mortgage professional, research a qualified individual who will help you based on your needs. It's worth it to take the time to find the right mortgage professional.

Does location of the home matter when considering refinancing?

Yes, it matters a great deal. Some real estate markets have reached their peak. Do not refinance at the top of the market. Research and see how quickly homes are selling in your area. Contact your local professionals regarding home values in your market. They will be able to give you their opinion, home comps, assessments of home value trends in your area. I recommend you leave 10-15% equity in your home when you refinance. A reputable mortgage broker or lender will recommend that you keep some equity in your home so you can sell your property if situations dictate.

Does the type of mortgage I have affect my refinancing decision?

Absolutely. Talk to a qualified mortgage professional first, before you make your decision. That person will help you compare your current mortgage rate/product to current market rates, available mortgage terms, and types of mortgages available based on your discussions. I look at mortgage products based on an indebt analysis of the clients needs. With that in mind, some general rules apply. If rates are falling, I would advise a homeowner to stay in their current loan until a 2% spread between their current loan and future refinance loan. If a client has a loan product that adjusts downward during a period of decreasing rates, I recommend they stay with that product until a projected rate increase period that will increase over a protracted period.

When rates start to increase, and are projected to continue to increase, I would advise a homeowner with a loan product that adjusts, when rates adjust, to move towards a fixed mortgage product (7, 10, 15 or 20 year mortgage depending upon an individual's situation). If the homeowner is geographically displaced due to employment, say five years or less, a long-term fixed mortgage is not the optimal product. If the homeowner plans to stay in a specific geographical area and in that same home for a long period of time, I'd recommend a long-term fixed rate product and possibly a home owner's line of credit (HELOC) to supplement the homeowner's financial decisions. With long-term mortgages a homeowner can still opt to pay more on the principal, reducing the term of the loan and interest costs.

What are economic indicators that bode well for refinancing?

A knowledgeable mortgage professional should understand economic indicators, and will be able to give you an accurate assessment on whether to refinance or not. Are interest rates rising or falling? With refinancing, timing is everything. If rates are falling and they are lower than your mortgage rate (a general rule is 1 - 2 % lower then your current fixed rate), it could be a good time to refinance. If not, it might be a better idea to sit tight and forgo refinancing for now.

by Jay Popejoy

What is a Home Equity Refinance?

When it comes time to do a home equity refinance there are several terms that you should be familiar with. Many people do not understand how a home equity loan works or even what home equity is. There are two basic types of loans you can get when it comes to home equity; an equity loan or a home equity line of credit.

So what is home equity? Quite simply it is the difference between what you still owe on your home and its appraised value, or what your home is worth. Here's a simple example. If your home is appraised at $150,000 and you still owe $50,000 on your mortgage the equity in your home is $100,000.

When you take out a home equity loan, or refinance your current home equity loan, you are borrowing against that equity you have built up in your home. This type of loan will give you a one time lump sum in the form of a check that you can do whatever you choose with. You will have to pay it with a monthly payment over a set amount of months, much like a mortgage.

A home equity line of credit works a little differently. You still are able to borrow a specific amount of money based on the equity in your home, but the money is not paid out in a lump sum. You can tap into your line of credit as needed, much like we do with a credit card. The nice thing about a home equity line of credit is you only have to make payments on the money you have borrowed. If you have a $10,000 line of credit and your use $3,000 to do some home remodeling you will only make payments on the $3,000. It is important to remember that just like any other loan you will be paying interest on any money you use out of your credit line.

When you are looking to do a home equity refinance loan you must realize that you are using your home as the collateral in order to get the loan. You are guaranteeing your ability to repay the loan against the value of you home. If for any reason you cannot make your payments the lender has every legal right to foreclose on your home so they can sell it to cover the value of the loan.

One of the best reasons to do a refinance your current home equity loan is to get a lower interest rate. If your original loan had a high interest rate you can save quite a bit of money if you are able to obtain a lower rate.

If you are thinking of doing a home equity refinance then do some research and get at least four quotes from reputable lenders to see which package may work best for you.

by Andrew Bicknell

An Affordable Dallas Group Dental Insurance Plan Improves Employee Health and Productivity

A Dallas dental insurance plan can help support the company in some ways. Dental insurance is an important part of the overall employee benefits that the company uses to attract and retain the best staff in the area.



But there are crucial medical reasons beyond the health and well being of employees' teeth and gums. Heavy health conditions can frequently be first detected during a routine dental exam. With today's arching medical care costs, forward-thinking companies are smart to focus on preventative care and early detection and treatment of sicknesses. This not only helps the employer to lower employee health care costs, and lower medical insurance premiums, but it helps lower absenteeism due to illness.



A routine dental checkup can regularly be the 1st detection of extremely major sicknesses like diabetes, which is linked to gum disease and cavities. And osteoporosis is often an early caution indication of loose teeth. Catching and treating these illnesses in the early stages can significantly reduce the damage they can have on a worker's life, and scale back the medical cost claims to the company's group health insurance plan.



The group dental plan helps to make oral care cheap and routine for employees. Healthy teeth and gums really leads to healthy employees. Teeth and gum disease can make workers much more likely to have significant health issues. As an example, studies have shown shown that ladies who have peridontal disease have a far higher chance of having early and low birth weight babies.



The direct medical expenses to to companies for staff who have early babies is about 15 times higher than for workers who have full-term deliveries. And continuing health problems and medical expenses are considerably higher for early children, as is absenteeism for the folks of early infants.



There is also a medically proven relationship between gum and tooth disease and health and circulatory disease and stroke. New research has demonstrated that inflammation of the gums can make contributions to clot formation in the arteries.



The U.S. Department of Health and Human Services reports that over 3 quarters of adults over age 35 have peridontal illness. A good Dallas staff member benefits agency or dental care Dallas tx insurance agency can help your company select a cheap group dental insurance plan that will improve the oral health and the final wellness of staff and their families.



There are many varieties of group dental insurance plans that a company can select from. These include DHMO (Dental Health Maintenance Organization ) plans, Dental PPO (Preferred Provider Organization) plans, and Dental Indemnity plans. These plans vary seriously in the variety of choice of dentists the worker can visit, as well as in the premium cost and the dental benefits contained within the plan.



If the Corporation has implemented a patron driven health plan,eg a health savings account or a health repayment agreement, workers could also be in a position to pay for broke medical expenses on a pre-tax basis. This can help in making good oral health even less expensive for a Texas company's staff and their families.



A well informed Dallas group health insurance broker can help give the company with a survey of available Texas group dental insurance quotes, and help the company identify the overall best plan for their workers and budget.

by Issac Johnston

Why Family Health Insurance Plans are important?

Health is our most valuable asset and health of our family members is even more precious. Expenses on health care have seen a steady increase in recent years as we and our families are looking for a lifestyle change. Consequently, health insurance and family health plans have gained immense importance. Now, we are not only choosing health insurance for ourselves, but also for our family members. In India, many of us prefer to purchase a family health insurance to avoid financial risk and ensure medical care for the future.

The family health insurance plans are important because:

They provide wider cover than any other health insurance purchased for an individual.

Expanded cover gives you more value in return of the premium paid by you.

The coverage is shared amongst the members of your family, hence your entire family gets protection under a single plan.

Major medical treatments and hospitalization expenses are covered under a single family policy.

Additional benefits like Cashless claim facility, tax saving under section 80D of the Income Tax Act, 1961 are availed to you.

The family policy also covers the expense of your preventive health tests and offers you discounted coupons per family plan.

Family Health Insurance induces greater benefits as we do not have to bear a large portion of the amount from our own pocket. Most of the costs are directly managed by Third Party Administrator (TPA).

Health of our family members is always a matter of concern for all of us. The best way to deal with this concern is to opt for a family health plan. These days, the health insurance covers for your family members can be purchased online. It is a convenient process with no paperwork involved and an instant policy is generated. Having a policy online helps you to print, manage and renew it anytime, anywhere. This way, you can provide perfect protection to the health of your loved ones.

by Prajakta Ambre

Can you afford interest only mortgages?

Interest only mortgages often receive a bad reputation due to borrowers whom opt to select this type of loan without fully weighing the pros and cons of doing so. The myths and confusion surrounding interest only mortgages are plentiful, but can easily be dispelled if only people would do a little research for themselves or even seek the help of qualified mortgage brokers who are very knowledgeable on the subject matter.

Don't be confused

The name given to interest only loans is often one of the reasons why individuals become confused. Don't let the name fool you, the title of "interest only loan" can be applied to practically any type of loan and does not mean that you will only pay the interest. As a matter of fact, you will eventually be paying the principal amount on the loan and chances are you'll be paying it at a high rate of interest if you've initially only been paying the interest portion. Interest only loans come with a term limit attached to the interest only portion, which means that once this time is up you'll be paying both the interest and principal.

Can you afford an interest only mortgage?

Interest only mortgages are not ideal for everyone; it's just that plain and simple. But they do offer distinct benefits to some potential borrowers, just as all home loans do. If you fall into one of the following categories then taking a deeper look at interest only mortgages is strongly advised:

� Those who earn a salary that can vary greatly during the year but is supplemented by commissions, bonuses, or other substantial but infrequent amounts of income

� Individuals who will increase their earning potential in the next few years

� Investors who are looking for a way to leverage debt

� Those who have a moderate loan balance and want access to more money to use in other ways

Interest only loans are not ideal for individuals who:

� Earn moderate salaries

� Those who do not have a plan of action for the money they will initially save with the loan

�Individuals who are looking for a way to purchase a home they can not afford

Only you know what you can afford and interest only mortgages are a great way to make your dreams of homeownership and other financial prospects a reality, if you are qualified.

Speak with the Choice Home Loan team of experts to help you pick the mortgage that is best for you.

by Marcus Brady

Learn how to get the home loan rate you deserve

With the home loan interest rates offered on Australian mortgages continuing to fluctuate, it is becoming more and more of a challenge to get a home loan rate that is affordable. Many potential borrowers are faced with the dilemma of taking out a loan that may be affordable today, but no so affordable in the long run. Since homeownership is a long-term commitment, it's important that your home loan rate be one that you can afford for the entire term of your loan. While no borrower can control the interest rates at which lenders choose to offer home loans, there are ways in which you can secure a home loan rate that is equitable for you.

Make a specific list

One mistake that many people make when shopping for home loans is failure to narrow down what type of loan that they need. Now it's understandable that most people will require the assistance of a professional broker or mortgage lender in order to pinpoint what type of loan they need, but even before getting to this stage you should have a list that at the least includes:

� Why you are in need of a loan

� How much you intend to borrow

� What rates you'd ideally like to pay

� How long you plan on being in the home

Having even some idea of what you want, makes finding a home loan rate that is right for you much easier.

Ask for what you want and make sure you are qualified to do so

Many people are intimidated by the home loan process and as a result are shy or afraid to negotiate for what they really want. And it's unfortunate, because Australian lenders are in fact willing to negotiate, if you are qualified to do so. Having solid credentials in the following areas is a great way to build on your ability to negotiate you home loan interest rate:

� Income-Demonstrate stable and strong income for at least the last 2 years.

� Your credit- The less debt you have, the better. But if you do have debt, make sure you pay it on time or have paid it off all together.

� Your down payment- The more money you can pay out of pocket, the less you'll need to borrow, which makes you a desirable borrower in the bank's eyes.

Don't be afraid to shop around

Comparison shopping is one of the best ways to get a fair home loan interest rate. The mortgage business is competitive and lenders are all vying for your business. But if you don't shop around then you'll never know whether or not you in fact received the best interest rate that is available.

Don't cheat yourself out a competitive interest rate, call Choice Home Loans today.

by Marcus Brady

Is it time for you to seek a better home loan interest rate?

Almost every homeowner wonders whether or not they should seek a better home loan rate at some time or another. The appeal of lower interest rates, the ability to take advantage of equity in the home or to even pay off debts can have a strong pull. But is seeking a lower home loan rate the wisest move for you? There is more to getting a better home loan rate than often meets the eye and after taking a closer look, you may be surprised at what you find.

Do you qualify?

In order to refinance you must qualify, just as you did with your initial home loan. This means that you'll need to:

Be in good standing on the home loan you already have- If you're behind on your current mortgage then you may be asked to catch up on those payments before you'll be approved for a another loan. If you can't pay the loan you have, you'll be seen as unlikely to pay on any new one you may get as well.

Have no other lines of credits - If you have a second mortgage already, chances are you won't be able to refinance. Lenders have to seek approval from the secondary lender before they can refinance the first loan and with the housing market being as rocky as it is, many lenders are just not willing to risk becoming second in line to another lender.

Have enough equity in your home- You can't refinance simply because you want to, your home must have equity, and this equity must be based on your home's current value. As a result, qualifying for lower home loan rates can be tricky for individuals who purchased their home for much more than what it is currently worth.

Can you afford it?

It comes as a surprise to many that the costs of refinancing can outweigh the benefits.Refinancing costs can range any from between 1%-3% of the value of the loan. This isn't an incredible amount of money if you plan on living in the home for an extended amount of time; if not then you may want to reconsider. If you don't plan on remaining in the home for a few years then you could end up spending more on refinancing costs then you would save by doing so.

Refinancing is optimal for individuals who are:

� In good financial standing

� Paying a high rate of interest

� Planning to live in the home for a reasonable amount of time

� Want to switch from a variable rate loan to a fixed rate loan

by Marcus