Duarte/Downey Real Estate Agency, Inc



Posted by Duarte/Downey Real Estate Agency, Inc on 6/23/2013

With mortgage rates at all time lows, you might be wondering if you should be considering refinancing your home. While it may seem like a great thing to do, there are a few things to consider before you decide. An obvious reason for refinancing to a lower interest rate is the monthly, and even more importantly the long term, savings you will get. Depending on the decrease in interest rate and the amount of the loan, you could see a savings of at least $50/month or $600/year or $6000/10 years. Refinancing to a shorter term loan can also help save on the interest you pay over the life of the loan so if you can afford a 15 year mortgage the benefits outweigh that of a 30 year. Some things to consider - If you have owned your home for a long time, your monthly payments are going more towards the principal of the loan, not the interest. Refinancing would cause you revert back to monthly payments of more interest than principal, losing the equity that you have built in your home. You may be charged for an appraisal on your home which can be around $500. The bank will want to make sure that you are refinancing for an amount your home is worth so some out of pocket expense is required. If you plan on moving in the next few years, refinancing may not be worth the amount you will pay in closing costs. There are several refinancing calculators available on the web including at http://www.zillow.com/mortgage-calculator/refinance-calculator/ and http://www.smartmoney.com/calculator/real-estate/should-i-refinance-my-mortgage-1302835660427/. No matter what you choose, being fully informed of all the options, costs and advantages/disadvantages is key to a successful refinance. Make sure you talk with you current lender, as well as other lenders to get the best refinance possible.




Tags: mortgage   loans   refinancing  
Categories: Financing  


Posted by Duarte/Downey Real Estate Agency, Inc on 9/16/2012

Getting approved for a loan isn't always a good thing. You have to make sure you are a good borrower. What makes a bad borrower? There are several types of loans you should avoid if you don't want to overextend yourself and potentially damage your credit rating. Payday loans Interest rates on pay day loans often run high into the triple digits.  They are designed to be extremely short-term. Pay day loans often put borrowers in a cycle of debt that can be difficult to break because borrower usually can't pay off the original loans and keep returning to the service. Car title loans Borrowing against an asset is usually never a good idea. Most car title loans charge interest with an annual percentage rate of well over a 100 percent and they are generally due within one month. If the borrower can't pay back the loan, the lender will take your car and sell it. Tax refund anticipation loans Another loan with an extremely high interest rate is a tax refund anticipation loan. If you need more money you can change the amount that's withheld from your paycheck. That way you give yourself a raise and the government takes only the amount that's owed. Co-signing a loan Co-signing a loan for someone else has you taking on all of the responsibility of another financial obligation with none of the benefits. Too often co-signers find themselves left with the loan long after the other person on the loan has stopped paying. It usually never makes sense to take on someone else's debt.  




Categories: Money Saving Tips