Refinancing Mortgage Rate Options For You

Why should you consider refinancing you existing mortgage? Interest, alone, costs home owners thousands of dollars. For example, a 30 year mortgage for $200,000 at 6.25% interest rate will cost the borrower $243,000 in interest payments. That's more than double the initial loan. If you are locked in at a high interest rate and can secure a lower refinancing mortgage rate, than this is a good option for you. Furthermore, the shorter the term on a loan, the lower the interest rates will be. So, if your mortgage term is 30 years and you can afford the higher monthly payments associated with a 15 year term, you could get the same $200,000 mortgage at a 5.75% interest rate, paying $99,000 in interest, saving $144,000. So ask yourself, "How much mortgage can I afford based on the monthly payments and my current financial situation?" Then compare this to your overall savings to decide how you should go about refinancing.


Another reason to consider refinancing is to consolidate credit card debt. The interest rates on most credit cards is typically much higher than a refinancing mortgage rate. Credit cards compound interest daily, whereas mortgage interest is compounded monthly. That will add up to huge savings over time and will help make your debt much more manageable. Another benefit to consolidating credit card debt this way is that the interest you pay on a mortgage or home equity loan is tax deductible. So, if you have enough equity in your home and your debt to income ratio is not too high, then refinancing your mortgage would be a good option. However, a word of caution: If you refinance to consolidate debt, then turn around and rack up more credit card debt, your situation will only worsen in the long run. Instead, you should consider making some serious life changes with how you spend your money.

What you must consider before refinancing.

One of the steps to refinancing a mortgage is to find out if the current refinancing mortgage rate is better than your existing one. The best way refinancing will work in your favor is for the new mortgage to have a lower interest rate and a shorter term. If you can't afford the monthly payments on a shorter term, then you will also want to consider how old you will be when the term expires. The last thing you want is to be past retirement age and still paying on a mortgage.

Like most things, refinancing is not free. Most lenders charge closing costs which average $4000. This, of course, can be added to your new mortgage so you would not have to pay up front. But be aware that there may be addition out of pocket fees. If you refinance through your current lender and do not borrow any more than what you currently owe, than you may be able to get the closing costs waived. You will need to carefully weigh your options and compare them to your refinancing mortgage rate to determine what your best long term and shorter term benefits will be.

Non Homeowner Loans - Creating a Source of Finance for the Homeless

Because of the preference that loan providers show for the homeowners, you have started having feelings of jealousy against them. Your experience with lenders shows that there are not much takers for you as a non homeowner. However, we feel that you are still half informed. Though, loan providers' preference for homeowners is well known, it isn't that they do not cater to the borrowers other than homeowners. So, you as non-homeowners too can get good deals in non homeowner loans.


Aimed specifically at the people who do not have a landed property of their own, non homeowner loans are the only hope of this category of people. Tenants, both council tenants and tenants with private lenders, can get their financial needs covered through the non homeowner loan. The category also includes people who have been living with their parents in their parent house.

Non homeowner loan is generally offered as an unsecured personal loan. However, when borrowers agree to pledge certain other assets as collateral, then the loan is converted into a secured loan.

The best part of the non homeowner loan is that there is not much to lose. You haven't pledged anything or the asset pledged is not as important as a home in homeowner loan. Non homeowner loans do not haunt borrowers with the repossession fears, which is so characteristic of the homeowner loans.

This means that the lenders are at a risk of losing the money lent as non homeowner loan. While the money can be recovered by suing the borrower for the non payment, the process is often long drawn and costs dearly to the loan providers too.

It is because of this risk that loan providers desire the borrowers to have a good credit history. Borrowers who have a good credit history imply that they are less drawn towards non payment. Those with a bad credit history may find a large majority of loan providers running away from them. Since, it is the credit history that acts as a guarantee for the borrower in the absence of collateral, loan providers will find it difficult to ignore bad credit history.

This does not put a full stop on the chances of the bad credit borrowers to get non homeowner loans. Certain loan providers do have deals for the borrowers with a lower credit score, i.e. bad credit history.

Borrowers wishing to take up non homeowner loans need to fulfil the following essential requirements:

o The borrower must be in full time employment.

o Computerised pay slips are used for paying the borrower.

o Bank account must have a direct debit facility.

o The proofs of identification and residence must be ready.

o The borrower must have been regular in making rent payments.

o The borrower must have a home telephone line or a mobile (if it is a mobile, a copy of the agreement must be produced)

The non homeowner loan can be used for as many purposes as a homeowner loan. These are consolidating debts, purchasing cars etc. However, you need to understand that the amount available under non homeowner loan is not at par with the homeowner loans. The lower amount may be the result of increased risk. In money terms, the amount under homeowner loans can range from £1,000 to £50,000 over a period of 1 to 25 years.

You would surely not be complaining after learning about non homeowner loans. Though the terms under non homeowner loans are not as attractive as homeowner loans, borrowers cannot help because of the vast differences in the circumstances of the homeowners and non homeowners. Also, there are not much finance options for non homeowners other than to take non homeowner loans.