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Refinance Tips & Advice
Free Home Values Useful for Planning Home Equity FinancingMay 1, 2008
Thinking of refinancing or taking out a home equity loan? Researching home values before shopping for home equity financing can help save time and assist in selection of appropriate home equity financing. Home Value Can Help with Debt Management
May 1, 2008
Bad credit can cost plenty in additional fees and higher interest rates. Sufficient home equity can help struggling homeowners consolidate their debts. The first step when considering home equity financing is to determine current home worth.
Refinancing in Today's Market
April 15, 2008
Interest rates are low, but underwriting guidelines have changed. What do you need to know if you are considering refinancing your current home mortgage? How to Compare Home Loans
By Sheryl LandrumHome Worth Columnist
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If you are thinking about a refinance or a new home loan, what is the best way to compare costs to ensure you are getting the best deal possible?
One of the key features borrowers need to be aware of when refinancing their mortgage or getting a new home loan is the Annual Percentage Rate (APR). This is especially important with a refinance or second trust deed, as most refinancing borrowers don't pay out of pocket for the new mortgage but simply roll the costs of financing into the loan. Costs involved with a refinance or new home loan are origination fees, discount points, home appraisal fees, title charges, and escrow fees. The APR represents the cost of financing these charges as an annual percentage rate. You can compare the APRs of identical loans between lenders by looking at the Truth-in-Lending Disclosures provided to
The Truth-in-Lending Disclosure, like the Good Faith Estimate, is required by the Real Estate Settlement Procedures Act (RESPA) to be provided to a borrower within three days of receiving his home loan application. These two documents are the cornerstone of your home refinance or new mortgage. The Good Faith Estimate should be an accurate approximation of the costs of your refinance and the Truth-in-Lending Disclosure will reflect these costs as the APR as well as state the actual mortgage interest rate, whether there are any prepayment penalties, and give the term of the loan (i.e., 30 year fixed rate mortgage or a 5 year adjustable ARM).
So, if you are thinking of refinancing your current home mortgage or looking to purchase a new house, contact a few loan officers and make sure you compare costs and APRs to ensure you are getting the best deal possible.
About the Author
Sheryl Landrum is a Senior Loan Officer with First Capital Mortgage of San Diego at the Prudential Realty Office in Bonsall, California.