Mortgage Refinancing: How to Lower Your Monthly Payment

By: Louie Latour
Submitted: 2007-01-17 16:16:08
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

If you are considering refinancing your mortgage because you need to lower your monthly mortgage payment amount, there are a number of different ways to do this. Finding the best way for you means doing your homework to avoid overpaying on the finance charges. Here is what you need to know to get started.

Everyone’s financial situation changes as the years pass. People marry, find new jobs, lose jobs, have children, or fall on hard times. This is perfectly normal and happens to everyone; managing your mortgage during these changes can be stressful and could negatively impact your relationships and family. There are steps you can take to ease the strain on your budget caused by the mortgage payment; however, make sure you fully understand what is involved and the risks associated with changing the way your mortgage is structured.

If you have an adjustable rate mortgage that is scheduled to “adjust” in the coming months to a higher interest rate, you might want to switch to a fixed rate mortgage to ensure your financial peace-of-mind. To lower your monthly payment amount you will need to choose a mortgage that has a lower interest rate and/or has a longer term length. Term length is the amount of time the lender gives you to pay back the mortgage and largely determines what your monthly payment will be.

There are risks when refinancing your mortgage. By choosing a mortgage with a lower payment you could end up paying more to the lender in finance charges over the life of the loan. If your current mortgage has a prepayment penalty in the contract, you will have to pay this penalty before refinancing the loan.

To gain the maximum benefit from refinancing when you need the lowest payment possible, combining a lower interest rate with a longer term length will give you the lowest payment amount possible. If your financial situation is dire and you are not able to make the current payments, contact your lender and find out if a “payment holiday” is available to you. The lender may allow you to temporarily suspend payments and you can use this time to secure the financing you need. To learn more about your mortgage financing options, including how to avoid common mistakes, register for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

Baltimore Mortgage Refinance

Article source: Expert Articles

Most Recent Articles in Mortgage Refinance category

  • Home Equity Basics - By: Justin Narin
    Purchasing a home is a huge life event. It's an investment that, over time, could yield a significant increase in value. As the years progress, the value of your home could increase
  • Understanding Mortgage Terms - By: Liza Arwati
    In order to get the best deal on your home mortgage loan, it is a good idea to understand certain terms that are specific to the real estate and financial industry. The following are the common terms you're going to hear when applying for your first mortgage.
  • How to Find a Great Mortgage - By: Justin Narin
    Think the first on-line loan you come across can offer you the best rate? Think again! There are literally hundreds of programs out there, and they all favor different kinds of borrowers. Find and compare the best loan programs out there. Did you know there are things only a loan officer can explain to you about the hundreds of loan programs available to you? Many factors can make the rate you're receiving on a mortgage more attractive.
  • Identifying and Avoiding Mortgage Fraud - By: Brian S. Icenhower
    Recent financial industry distress publicly attributed to widespread mortgage loan defaults has generated mounting pressure on federal prosecutors to increase investigations into incidents of mortgage fraud across the nation.
  • How to Fight Countrywide Loans - By: Kevin Levonas
    Foreclosure Case Law: Tina vs. Countrywide Home Loans Pt.1 An interesting case was decided recently in California: The Tinas fell behind on the mortgage payments and Countrywide foreclosed. the Tina's decided to fight for their homes.
  • H4H program... Hope or Hopeless? - By: Kevin Levonas
    Article on the new H4H program and its current effect
  • Myths and Facts about Lenders' Assistance to Homeowners - By: Katherine Marfal
    About Lenders' Assistance to Homeowners. Debunking some common myths to benefit the home owner.
  • Practical Guide To Prosessing Your Own Home Loan Modification - By: Kevin Levonas
    A mortgage loan modification, when completed succesfully may be the best option benefitting both the bank as well as the home owner. This article helps you in the processes of preparing for and processing your own home loan modiification.
  • Now's the time for First time home buyers to buy their first home - By: Alice Shown
    Realtors are saying that this is a great time for first time home buyers to buy a home.
  • Mortgage plan expected to ease rates pressure - By: Paul Sharp
    The federal government has been planning to boost the mortgage sector to meet the increased interest rates among much expectation. However, lenders apart from the bank have been banned because the funds provided by them have been dried up due to the global disaster.