first i hve taken a home loan for 20 yrs tenure say at 11.25 % floating rate of interest, later on it was converted to less than 20 yrs based on the revised rate of interest which was lower than 11.25%. now again i am interested to go into an agreement of 10 yrs loan tenure. can you advise me whether it is advisable to do so ?
198733
It is always adviable to get the shortest loan term possible, that way you pay the least interest.  In case changing your loan term will result in any complications, the bank told me that I could turn my 30 year loan into a 15 year loan simply by making 1 extra full payment towards the principle every year.  So if its easier for you, just pay extra and leave the loan as it is.  You will still be better off in the long run.
612589
Make sure your loan contract says that excess goes to principle, which is the more favorable option.\n\nMost, not all, loan agreements are written this way, so double check.  Ask to see the language in the document if you are currently loan shopping.
70390
The standard downpayment used to be 20 percent of the purchase cost.  Times have changed dramatically.  I know NUMEROUS people who have bought homes with 0-5 percent down in the last  10 years, especially since interest rates plummeted around 2001-2002.  \n\nI just purchased a home in 2004, and we were required to put a downpayment of roughly 5% of the purchase cost. We were able to get a conventional interest rate of 5.5% at the time. Our mortgage payments have been very manageable. If you are concerned about building equity faster or saving on interest, you can always pay a little extra each month (a little goes a LONG way).  We've payed an extra $100/mo., and we've knocked 6 months off the life of our loan so far, which is huge.\n\nThese days, many, many lenders have 95-100% LTV (loan-to-value) loan programs for first-time buyers (THAT is key). You should call banks and mortage brokers in your area and ASK them if they have any 95-100% LTV loan programs, and ask what you need to qualify (there might be income restrictions, in my case there weren't any).  It's true that if you put less than 20% down, you have to pay PMI (basically mortgage insurance), but I believe the majority of new homebuyers today pay that.  It seems fairly standard.  The BEST part is that PMI is NOT permanent.  You can have your PMI payments stopped after you accumulate 22% equity in your home (which should only take a few years between your home appreciating in value, plus you making payments decreasing the amount you owe).  If you go this route, there are MILLIONS who have gone it with you, and some of us (me, included), don't regret it one bit.\n\nGetting an FHA loan is sometimes easier because your loan is guaranteed by the federal government, but they have limits on how much you can borrow. Before I ever applied for anything, I pulled my own credit report from MyFico.com, and made an appt. with a local bank rep to discuss my options. \n\nThere are three big things to prepare before you shop for a loan:\n\n1.  Make sure your credit is as clean as possible (that means do NOT open any new credit right before or during your lending process).\n\n2.  Make sure your debt-to-income ratio is as LOW as possible.  This means that you want to try to make sure you are not spending more than 36% of your income on debts like rent, car, credit cards, etc.  Some lenders might want to see that ratio a LOT lower.\n\n3.  Save for your downpayment PLUS have a little leftover for after you close on the home.  Once you get in there, chances are, you'll need the cash for repairs or to furnish the place.\n\nBest of luck to you!
29413
Whatever the "average" interest rate is, I'm not sure why you're interested.  I would think you'd be looking for the lowest rate.\n\nIf that's what you're interested in, I suggest you find a credit untion near you that you qualify to join and apply for your loan there.\n\nThe next best way to get a low interest loan is by using collateral like with a car or home equity loan.  Do you have a car or home with equity that you can use as collateral for a loan?
143585
Going through old files.  Interest rates were much higher a few years ago and a lot of the people with 10% interest rates may be interested in refinancing considering they wouldn't have to add that many more years to their mortgage.  Assuming you're in the mortgage business, that is.\nAnd I know that it's difficult, but cold calling works as well.  Sending out inexpensive flyers works, too.
583764
Definitly go with a fixed rate first mortgage..\n\nAs the other responses tell you, you will simply borrowing against your property that you own free and clear. It will be considered just a new first mortgage (refinance). \n\nYou definitely do not want a Home Equity Line of Credit..even though every LARGE bank in america tries to advertise and SELL these loans, they are a bad move for any borrower. Not only are they bad for your credit, you will have a much higher interest rate.. Banks try to SELL them to people because they make much more money on a equity line of credit..\n\nI would also advise that you work with a nationwide lender that has a portfolio of investors. The reason i say that is becasue if a loan consultant can shop your loan for you among their many investors, you will get the best possible loan program for yourself. What i mean by that is you will get lower fee's, lower rates, and faster service...\n\nMy name is Jason Fry, and I am a loan officer with Providential Bancorp, a nationwide mortgage lender. I'd be happy to assist you in a refinance, or at least be able to let you know exactly what YOU QUALIFY FOR. You can then make a more informed, and educated decision whether it would be the right move for you. \n\nFeel free to give me a call at 312-264-6448, or \nyou can email me at Jasonf@providential.com.\n\nThank You,\n\nJason Fry\nProvidential Bancorp
208645
Even though your first mortgage rate is at 5.625%, you would have to consider your blend rate if you opt for a second mortgage. Either way (HELOC or HELON), your interest rate will be much higher than your current rate, so if your blend rate matches or is better than the current interest rates now, then you might be better off just refinancing your property. You also have to consider how long you plan on staying that the current location know. This will allow you to know if your going to recover the cost of the refinancing. Obviously if you do a HELOC or HELON and there are costs associated with them, you will not recover the cost of those items, unless you factor in the interest of the debt consolidation and what your saving in doing that. If you need clarification, feel free to contact me directly.
203006
They should have told you when you refinanced what interest rate they were charging you.  It is legal to change the interest rate.  You should also have asked what rate they were charging.  You didn't read the contract carefully.
463436
It depends on the lender. Some have seasoning requirements. Some have 6 months, some have 12 months. There are also lenders that don't require seasoning, but they are usually non-conforming and depending on  your credit, 2 years previous rental or mortgage history, along with the 4 months mortgage history that you have with you're new mortgage, their rates might not be any better then the rate you have now. Call a few mortgage brokers and ask them if they have any lenders that will do a rate/term refinance with no seasoning requirements. Also, make sure that you don't have a pre-pay penalty with your cuurent mortgage. Sone lenders charge a huge pre-payment penalty.\n\nGood Luck!
634878
Excellent question. Hopefully it is a 15 year fixed.  That being said, your mortgage on a 15 year note is comprised of P.I.T.I. if you did not put up 20%. If you did, then it is only P. (principal) and I. (interest). When you pay extra towards the principal, the interest is lowered. TO get a calculator for this, go to Dave Ramsey's website. See below. GO through Financial Peace University while you are at it.
394387
The time is now! I started on October 4th hopping by December 4th When my lease is up i was already out. Well Today is November 20th and I still haven't found my home, the good thing is my loan is already approved, the only thing missing is the house and the long wait between negotiations  and appressal. \n\nMy advise is, get pre-approved or approved FIRST, then start house hunting. The most important thing is to get approved for the best loan before the hunt, which is the easiest part. \n\nMy third application took 30-minutes over the phone with my bank and within 4-business days I was sort of pre-approved.  My original loan amount was for $300,000 which got decline by the underwritter, so I had to talk to him and settle for a $260,000 loan., But a week later, it was finally approved.   \n\n\nSince my original loan amount was decline, I had to look for homes withing that price range in another part of the state. Where I currently live, Homes start at $300,000 and they tend to be small, and needing a lot of work.\n\nMy bank  was my third and last lender, after trying with Credit Suisse which gave me 100% financing at 5.375% then change the terms to 7. 850% for 3-years fixed and 27-years variable without notifying me. \n\nThe second attend was with Quicken Loans, which was a complete waste of time. BTW, if you valued your sanity, AVOID Quicken Loans!\n\nA fixed interest mortgage is the best to go, you don't want to go for one of those "Interest Only" you hear so much about. Thouse will lead you to a foreclosure within 3-year.\n\nFor a 100% financing loan your mortage payments will start the first day of the month 2-months later, mine is set for February 1st. 2007. The monthly payments will  include Principal, Interest, Taxes and Insurance.
270085
The lowest rate on the market may not be the lowest rate available to you as what lenders will offer you depends on your personal circumstances. The lowest rate today may not be the one you get as interest rates are subject to change - go visit a couple of different brokers and get some illustrations of what is available to you based on your circumstances.
294978
Yes if your payments and interest rate is loweredd and it doesn't it is not expensive.\n\nYou should look into refinancing only if the above is true.\n\nThe advantages is that you would make lower monthly payments, though it might be spread over a longer period of time. If you can keep the same time frame for paying the loan off with lower payments that would be better.\n\nThe disadvantage is if you don't refinance to a lower rate and lowere payment you will continue to pay the same monthly payment as you are now which might be higher unless you look into the possibility of refinancing the loan.\n \nYou might try this link and see if they can offer you a better deal.\n\nwww.nextstudent.com\n\nI hope this  has been of some use to you, good luck.\n\n"FIGHT ON"
664517
Be very cautious when looking at any loan that has an initial, short term followed by a different, longer term--- for example, the "interest only" loans where you pay only the raw interest on the loan for the first five years, then switch to combined principle and compound interest for the remaining 25 years. Too many people get lured in by the easy terms in the first part of the loan and drown in debt when the second phase kicks in.\n\nYour credit does change every time a lender does a "hard hit" on your credit so ask the potential lenders if they'll be doing "hard hits" or "soft hits" for the preapproval. It's most common for a lender to do "soft hit" checks first, to see if you have any credit at all, before investing the time required to do the more thorough check that causes a "hard hit."  A mortgage broker can better explain the difference between the two but a "good" lender will do the soft search first, then tailor a loan to your needs and run the final hard search once you've picked out a loan.\n\nYou can withdraw up to $10,000 from your 401(k) or IRA for your first-time home purchase--- assuming of course you have that much in there to begin with. This is a really, really good place to get part of your down-payment with. Check with your accountant or with the broker holding the retirement account because you may still owe tax on the money but at least you don't pay penalties. Depends on how you put the money in.\n\nThe best advice--- do not spend all of your savings on your down-payment, and don't mortgage yourself so hard that you end up "house poor." Even a brand-new home is going to want a lot of your money when you buy it.   Just because you qualify on paper for a $200,000 mortgage does not mean you really can afford it!  Your lender is going to approve you for the highest possible loan so they make the most profit they can--- don't take it just because you have the opportunity, even if you really, really want the more expensive house. Taxes and homeowner's insurance are not factored into the original mortgage quote but have to get paid to the lender monthly, and could add up to a hundred dollars a month or more. That comes out of your vacation fund, entertainment budget, etc... you will end up hating your house if you can't afford to furnish or fix it, or if you can't spend some money getting away from it every now and then!
313385
I am not the dragon fly but I am a loan officer whose e-mail works :-)\n\nPerhapse I can assit you with your mortgage needs.\n\nDrop me a line with your mortgage scenario (purchase, refi etc) and I can tell you if I can assit you or not.\n\nKevin 866-562-6838 x 106\nkruorock@firstratelending.com
168281
You need to pay careful attention to how you will pay for the house by the time you retire, or how you will make payments after retirement.  The most common mortgage loans have terms of 30 or 15 years, although with very good credit and a little research you can get one with whatever term you need.  For a first-time buyer 14 years from retirement, a 15-year term may be your best option.  The monthly payments will be higher than a 30-year loan, but the principal component will be higher and the interest portion much lower.  Total payments (the sum of all payments) will be much lower.\n\nDO NOT get a variable rate loan, an interest-only loan, a baloon loan, or any other exotic instrument.  Get a fixed rate loan.\n\nIf you are not satisfied with the rate of return on some of your investments, that money might be more productive invested in a house.  If you have enough in your savings accounts to make a substantial down payment on a house (10%-20%) and still have enough to satisfy your retirement plans, and you have good credit, you should definitely consider that.\n\nBuying a home is one of the largest, most important decisions most people will ever make.  It can also be very complicated.  You don't provide enough information to permit an accurate accessment, but with no credit card debt, some savings, a 401(k), and retirement plans, you appear to be a very good candidate for a home purchase.  Price some of the homes in the area you like and look online to see what lenders are offering in terms of rates and required down payments.  You may already be qualified.
266757
while you might have some equity in the home based on home appreciation, you will have paid NOTHING towards the principal of the loan.  Five years can be a long time, but if you're careful and work the plan well this plan might work for you.\n\nPersonally, I prefer the fixed rate 30 yr mortgage.  After 5 years in my home, I have paid a bit on the principal, plus have built some equity in the home.  But, that's for me.\n\nTo answer the question about the interest.  Well, that's what you paid to the lender to service you with this loan.  In essence, it's gone -- all 5 years of it.\n\nBear in mind that such interest may be deductible from your income when you file your IRS return.  That might be a good thing.\n\nPlease go talk with some other bankers, financial experts, and accountants, and ASK, ASK, ASK.  They are used to it.