Refinance

Friday, November 28, 2008

If you pay off your present loan with another loan with different terms and condition, this is called Refinance. This is mainly done to reduce the interest rates or cost of the loan. Sometimes it is also done to pull out the home-equity so that it can be used to pay off some high interest rate credit card debts. It can also be done to increase or decrease the time period of the loan. You can also turn the mortgage from ARM to FRM by refinancing. Even you can opt for refinancing to lower the monthly mortgage payments by increasing the total duration of the loan period. And if you want to pay off the loan early as you are getting a lower interest rate, you can opt out this option of refinancing.



By the way, sometimes your lenders can claim prepayment penalty if you are going for refinancing before a certain period of time. So you have to calculate whether you are actually getting any benefits after refinancing as you will also have to pay the prepayment penalty. Last but not the least, if you want to refinance then first go to your lender and check out whether he can offer you what rates and terms you want. If he or she can’t offer you what you want then you can shop for the lenders and check out who can offer you the best rates and terms. There is another kind of refinance which is called Cash-out refinance. This type of refinance is mainly used for home improvement or paying off any credit card debts or student loan.

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Housing Bubble

Tuesday, November 25, 2008

The owes of mortgage market continues still now and the country's economic condition is bad too. Even the number of unemployment has increased sharply and we are not sure whether this condition is going to be recovered in near future or not. But we can't even think that property prices are so low and it can't be lower. In future the condition may be worse. I think in this Christmas the mortgage rates are going be increased further. Hope in this housing bubble and economic rescission, our new government will be a bit more proactive, so that we can overcome this situation.

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Quit Claim Deed

Monday, November 17, 2008



A Quit claim deed is mainly used to transfer the real estate property among family members or friends. The quitclaim deed doesn't assure that the title free from any kind of liens. By the way, the quit claim deed needs to be notarized and recorded in the county recorder's office to make the deed valid. If you are buying or selling a property, then it is better to avoid the quit claim deed and use a Warranty deed as a Warranty deed assures that the title is clear from the liens and thus you can avoid future confusions.

A quitclaim deed does not release the grantor from the mortgage obligations unless or until the grantee takes the mortgage on his or her name. By the way if the property is in mortgage then it is better to take confirmation from the lender before signing the quitclaim deed.

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Debt to Income Ratio:

Saturday, November 8, 2008



Debt to income ratio is also called DTI. Debt to Income Ratio means the percentage of gross income of the consumer that he uses to pay his debts. This is one of the most important factors that a lender or a lending institute checks before approving a loan or mortgage. If your debt to income ratio is less then 36 percent then you have a very good chance to get approve for a loan program with affordable rates and terms.

There are other factors also which a lender checks before approving the loan but it certainly help if you have a lower debt to income ratio. Like, for FHA loan, your DTI ratio should be between 28 to 36 percent.

How to Calculate Debt to Income Ratio:

Calculating a Debt to income ratio is not time consuming or difficult task. Just calculate all your monthly debts, mortgage expenses, home insurance and divide it with your gross monthly income. But don’t count your expenses towards utilities food, entertainment.

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The Blog Finance Zenith is a premier source of news, information, tips, and commentary on personal finances problems and its solutions worldwide. It has often been cited by both the mainstream media and bloggers as a reliable source of facts, figures, opinion and trends about personal finances.

Founded by Kim Patrcik in the year 2008 as a premium source of finance information and news guarantees to provide all the solutions to the people having problems related to debt, credit, insurance, mortgage, economy etc.

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