In order for a mortgage refinance to make sense, there must be some type of significant improvement for the homeowner. The available and offered mortgage rate must be lower to recognize a savings in the monthly mortgage payment. Usually a 1 to 2% drop in mortgage rate is the best option in order to see a substantial savings. In some cases, cutting the term of the mortgage is more important for a borrower as part of a long term financial plan. Either way, these are sensible reasons for a mortgage refinance that results as a benefit to the homeowner.

Increasing the mortgage amount in order to consolidate other debt does not always offer an advantage since this increased mortgage amount is now going to be paid off over the course of many years. Borrowers need to look closely at what they are consolidating since it may be wiser to take the savings that come with the refinance and apply it directly to other debt such as credit cards. In this way, the home is protected from higher monthly payments and the mortgage refinance continues to make sense.

The ultimate goal of a mortgage refinance for the average homeowner is savings which is very real and attainable in today’s low mortgage rate environment. Since the application and approval process is the same as when making a home purchase, homeowners should have all of the documentation ready and available for the lender so that the transaction can run smoothly and close in a reasonable amount of time. Since no one knows what mortgage rates will be from day to day, homeowners need to determine their needs and what mortgage rate is within their comfort zone to obtain their goals. Today, it is easy for any homeowner to look right online at the current mortgage rates being offered for a particular location at any time.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

According to Freddie Mac, 58 percent of borrowers who refinanced during the first quarter of 2012 took mortgages that were basically the same size as the existing mortgage. This amount was the largest percentage in 26 years since records have been kept by Freddie Mac. Borrowers totaling 21 percent actually reduced the size of their mortgage by bringing cash to the closing table. In comparison, back in 1985 through 2008, 50 percent of borrowers took out mortgage refinances that increased the loan amount by 5 percent or more.

Whether it is by choice or by mandate, homes are no longer being used as ATM machines as was popular in the recent past. Today’s borrower is refinancing for a benefit, to reduce the existing mortgage rate or mortgage term. Whether for personal reasons or need, some are reducing their mortgage balance with cash at closing in order to obtain a refinance. These borrowers did not default or foreclose on their homes because the market changed, but instead chose to successfully refinance even if it cost them additional funds.

As consumers continue to become more aware of the details of mortgages and housing market fluctuations, more borrowers will set their own limits with mortgage refinances instead of following the latest fad or grabbing the latest deal offered. With today’s technology all around through cell phones, tablets and computers, borrowers are able to find any information they need to educate themselves about the pros and cons of a mortgage refinance. In addition, they have the means to compare lenders and mortgage rates in order to receive the best deal right online without ever making a phone call. Taking back control of their finances, borrowers are setting their own limits with mortgage refinances in an attempt to gain back what was lost.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

Many borrowers are or have been denied a mortgage refinance for some reason or other. The denial is often the result of a particular lender’s guidelines that were in place at the time of the mortgage refinance application. Lenders have what are called overlays for conforming mortgages which are additional guidelines on top of those issued by Fannie Mae and Freddie Mac. These are called the matrix in the lending world and differ from lender to lender. Each mortgage is approved or denied according to the matrix for that particular mortgage product. For this reason, when a borrower is denied by a lender, it should not be their final attempt. However, running from lender to lender is also not a good idea since each one will probably make a hit to the credit report which can ultimately damage the borrower’s credit scores. By inquiring for information online without using a social security number, the borrower may be able to find a lender who is able to help them. It is a much easier and efficient way of searching for help and more likely that the borrower will find success.

In some cases, it may very well be impossible at this time to refinance. Finding out the reason is important because it could be related to something on the credit report which the borrower can work on improving so that in several months they may be able to apply again for a mortgage refinance after receiving a denial. Whatever the reason is for being turned down, success is still a real possibility.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

Knowing the value of the home is the first step when considering a mortgage refinance. Estimated property values can be found online through many popular real estate websites. In many areas, the county’s property appraiser website has this information open to the public where anyone can search for recent sales in the neighborhood where the property is located. For a regular mortgage refinance, the mortgage cannot be underwater since that type of loan falls under the Harp 2.0 program. Too often, borrowers over-estimate the value of the property which, in today’s market, will affect their mortgage refinance plans if they do not have this prior knowledge.

When planning to refinance, refrain from making credit card purchases or opening any new credit lines. These things can affect the credit scores which will ultimately influence the mortgage rate that is offered. Once the refinance application is in progress, it is important to continue making mortgage payments to the current lender even if a closing date has been scheduled. Often processing and underwriting can get held up for any reason which can change the closing date of the refinance mortgage. Any over-payments will be refunded to the borrower after the transaction has settled.

Having all of your previous mortgage papers available will also save time and money. Title companies usually issue a credit if the existing title papers are available. If a survey is needed for the loan file, the existing and most recent survey is usually sufficient as long as no major property changes have been done. If for some reason there is lender forced placed homeowner’s insurance on the property, now is the time to obtain regular home insurance which will also be cheaper.

Mortgage refinances are supposed to save borrowers money. Shopping for mortgage refinance rates is just as important as shopping for something tangible, such as a television. If borrowers do not look around or just settle for what the original lender or mortgage servicer is offering, they may not get the best mortgage rates that are available for them. For this reason, the internet has become the most popular venue for mortgage refinances today. By shopping online, borrowers can look at the different mortgage rates and fees that are offered by multiple lenders for their location.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

Credit scores are extremely important when it comes to determining mortgage rates. When the scores are low, the mortgage rates will be higher. High scores, normally 740 and above, will allow borrowers to receive the best mortgage rates without any added points. A very important item that a borrower needs to think about is the rate lock period. The longer the rate lock period, the higher the mortgage rate. This is the best incentive for borrowers to have everything prepared and ready for the lender when applying for a mortgage refinance. As soon as the rate lock is signed, the clock starts ticking. If the rate lock needs to be extended, depending on the lender, that will sometimes cost a borrower more money.

Most borrowers today are opting for the no cash out rate and term refinance that offers lower mortgage rates than cash out refinances. Cash out refinances are only an option when there is sufficient equity in the property. In some cases, even the loan to value can affect the mortgage rate with higher LTV’s requiring points to be added on. Single family homes are considered less risky than condominiums which also often have higher mortgage rates. It may not seem possible, but lower mortgage amounts will increase the mortgage rate just as higher mortgage amounts do. This can occur on amounts below $100,000 since lenders make less money on smaller loans. Some lenders will not even offer a mortgage for anything below $40,000. It is obvious that shorter term mortgages, such as 15 year mortgages, have lower mortgage rates and whenever possible, borrowers should choose this option. Even if the mortgage payment remains the same, the interest savings on a shorter term mortgage can be phenomenal.

Each lender has different ways of determining add on points to mortgage rates. Lender rate sheets can be very complicated and have adjustments for each or just some of these items. This is why borrowers should always make comparisons of different offers in order to obtain the best mortgage refinance rates available for their circumstances. Today, most quotes are obtained online since this is now considered to be the easiest and quickest way to compare mortgage rates and fees. From there, borrowers can choose what they feel is the best offer.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

Since housing is most likely the highest expense that any borrower pays, it is always a good decision to try to bring the cost down. Many borrowers started their mortgages prior to the housing boom and actually have equity in their homes today. This equity is used in the loan to value calculation of the refinanced mortgage which will actually make the transaction possible with the current lending guidelines. With mortgages rates at record lows, it is a good time to refinance provided it is affordable, as well as, a sound financial decision. Credit scores and credit history need to be very good in order to get the lowest possible mortgage rates that are available, otherwise a refinance may not be advisable. When interested in refinancing, borrowers should always ask for a comparison between a 30 year fixed rate mortgage and a 15 year fixed rate mortgage. If well qualified to receive the lowest mortgage rates, the monthly mortgage payment may be the same or slightly higher for the 15 year mortgage. The major benefit of this mortgage term is that the loan will be paid off quicker which results in a substantial amount of interest saved. Equity in the home is also accumulated at a faster pace as compared to refinancing back to a 30 year mortgage which adds years back to the loan. In the end, the decision will depend on when a borrower wants to be free of the mortgage according to their personal financial plan and if they can afford the higher monthly payment, if this occurs. In some cases, a borrower may need additional cash at the moment which would make a 30 year fixed mortgage rate the better choice. In order for any refinance to be worthwhile for someone, there has to be some type of financial gain that will be realized immediately or in the future.

For the experienced homeowner, a refinance plan is a financial tool that should provide the results that were intended. Since a refinance does indeed cost money that is usually added to the loan amount, refinancing too often can result in losing the intended savings through the closing costs. On the positive side, the benefits of a 15 year mortgage refinance are usually enough that another refinance may never be required again.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

It does not matter how much money you have, how great your job is or what neighborhood you live in when it comes to mortgages. What does matter is that whatever you put on your application can be backed by the appropriate documents. The mortgage application for a regular conforming refinance should be fully completed with up to date and accurate information. Lenders need the current two years of work history and income when it comes to employment and recognizing its stability. If the current job has been held for 1 year 11 months, the previous employer information is necessary along with the w2′s, paystubs and possibly tax returns. The current two months of financial statements are also necessary. This means every page of these documents even if they are blank. It is also a requirement that any large deposits appearing on the bank statements, especially cash, will have to have documentation to show where it came from. These are the little things that hold up a mortgage refinance approval. To make this process even easier, borrowers should give the lender a copy of the current homeowner’s insurance, original title, deed and survey. Submitting these items can possibly save the borrower from paying for unnecessary closing costs.

There are plenty of things that can occur that could hold up a mortgage closing. By preparing for a mortgage refinance, it is more likely that this will not happen. Having everything ready will reduce the amount of requests from the lender, possibly eliminating them completely.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

Mortgage rates have been dropping for several years in a row after the economy took a hit and the housing market declined. With the Fed’s involvement and commitment to keeping rates down, consumers have been given the opportunity to save money on their monthly mortgage payment. Of course, it is well reported about all of the underwater borrowers who were not able in the past to refinance their mortgage to lower rates because of property loan to value issues. On the other hand, there are indeed many borrowers who are not in that position and who still have equity in their homes. These individuals are most likely able to get lower mortgage rates through a conventional mortgage refinance, provided they have kept their financial affairs in order, including credit scores. For borrowers who have been waiting to see if mortgage rates will go lower, it just may be the moment to make that decision for a refinance. Economic reports have been showing a slight improvement in the economy with less unemployment claims, better housing reports in comparison to previous years and more job creation taking place. With this type of news, there is a very real possibility that mortgage rates will begin to increase this year. Although this is something that can not be definitely predicted, borrowers who have been sitting back and watching should now be looking at what is currently happening so as not to miss out on a unique opportunity.

Mortgage rates have little room to drop as they have already been sitting at historically low levels for several months. While it does not cost anything but a little bit of time to find out what mortgage rates are available in your area, it may cost a significant amount of lost savings if the is missed. A quick internet inquiry, without the need to reveal a social security number, may surprise many borrowers at how low mortgage rates actually are right now.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

The average amount of time that a mortgage stays intact now is approximately five years. This means that in a small period of time, homeowners either move to another location or refinance their existing mortgage for better terms. Very few homeowners in this decade hold on to their original mortgage for the full term period of 30, 20 or 15 years. When mortgage rates or home values change, the number of mortgage refinance applications will substantially increase. Borrowers are out there looking for the best mortgage rate they can obtain, sometimes several times in the same year. Often, many believe that they must go with their original lender or the lender that they send their mortgage payment to each month in order to refinance. It is absolutely not necessary to use the original lender when refinancing. Nor is it necessary to use the servicer who receives your monthly mortgage payment. Since most conforming mortgages are owned by Fannie Mae or Freddie Mac, borrowers can choose to refinance with anyone who does conventional mortgages. With the use of cell phones, tablets and laptops, most borrowers will find it more convenient to do their research for the best mortgage refinance rates on the internet. This is probably the easiest method of seeing the different mortgage rates available all at one time. It is also a means of protecting your credit rating since your social security number does not have to be submitted in order to receive the best available mortgage rates.

Taking personal financial responsibility involves making the right decision that will produce the desired outcome. Obtaining the best mortgage refinance rates is something anyone who is refinancing should take seriously enough to do the homework involved. Doing it right and getting the best rate the first time can help avoid another refinance down the line.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.

Many borrowers who have always paid their mortgage payments now find themselves looking at lower mortgage rates and stricter guidelines. With housing prices declining, they cannot take advantage of refinancing because the loan to value of the mortgage does not meet the normal refinancing guidelines. For this reason, Harp 2.0 was created and introduced to the public at the end of 2011. This is actually an enhancement of the original Harp program and is intended for those borrowers who are not behind on their current mortgage payments. It is a guideline that borrowers must have maintained a good mortgage payment history for the past twelve months which means no late payments for the most recent six months and no more than one late payment in the past year. This program is not for those people who are facing foreclosure or who have missed several mortgage payments due to hardship or any other reason. Because of economic and housing conditions across the country and the decline of real estate values, the targeted borrowers for Harp 2.0 are those that purchased homes at higher prices, have higher mortgages with higher mortgage rates and now, with property values falling drastically during the past years, are considered underwater with the loan to value greater than 80%. Many of these existing homeowners would otherwise be unable to refinance to a lower mortgage rate under the current conditions. With current conforming 30 year fixed mortgage rates at 3.500% and 15 year fixed mortgage rates at 2.875%, borrowers are able to refinance into a more affordable mortgage. The program is only available to borrowers who already have a mortgage that is owned or guaranteed by Freddie Mac or Fannie Mae and was sold to them on or before May 31, 2009.

Harp 2.0 refinances still require a mortgage application like any other mortgage. Borrowers are not required to use their original lender, but can research for the best mortgage rates available through any lender that is participating in the Harp 2.0 program. Guidelines are specific to this program with each entity, Freddie Mac and Fannie Mae, having their own underwriting process and instructions. Since Harp 2.0 targets underwater borrowers, it is expected that refinances will increase throughout the year as the program becomes more familiar to the public. The program runs to the end of 2013 which give homeowners plenty of time to take advantage of the this opportunity.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.