Released on: November 23, 2007, 8:56 am

Press Release Author: Kate Ross

Industry: Financial

Press Release Summary: Refinancing a home loan is a rather simple process. Yet it is
smart to know what your options are before undertaking it. Many things have to be
considered, you should compare lenders, rates, costs, interest types, etc in order
to make a well informed decision.

Press Release Body: Refinance Mortgage Explained

When you decide to refinance a mortgage you'll be canceling a previous loan with the
money amount obtained from a second loan. Unless of course your motive is that you
are not being able to meet the monthly payments you should make sure that the new
loan has overall better conditions than the previous one.


Refinance Advantages

The first thing to consider is the interest rate. You may be able to obtain a refinance with a lower interest rate
because market conditions have improved or because your credit and financial
situation have improved. Either way, pay special attention to other costs as you may
be paying as much in extra fees as what you can save by reduced interests.

If your current mortgage interest rate is variable you may want to refinance your
home loan and obtain a fixed interest rate, this will give your monthly payments
certainty so you don't have to worry about sudden increases on your expenses. Fixed
rates tend to be a bit higher but the peace of mind that they imply is well worth
the small difference.

You can also get a cash-out refinance, you'll be refinancing for a higher amount
than the amount owed so you'll end up with extra cash for home improvements, buying
a car, going on vacations or any other purpose you may think of. Just make sure that
you are able to meet the monthly payments. Given that your new debt will be higher,
your monthly payments will probably be higher too, unless of course you get a longer
repayment program too.


Cash requirements

Bear in mind that there are certain expenses that must be paid separately, like
attorney fees, closing fees, etc. However, if you don't have the cash available, you
can opt to charge this amounts to the loan principal, thus avoiding the need to find
the money in order to close the deal.


How long does it take?
The refinance process is usually completed in a reasonable amount of time. A length
ranging from ten days up to a month can be considered acceptable. If you are short
on time, make sure to push for a quick closing when you talk about the loan
conditions with the lenders as the time they can take is rather flexible. However,
if you are not in a rush, you'll better take your time to request quotes from many
lenders and compare rates and other conditions in order to get the best deal
available for you.


Finding the lender

The refinance can be obtained from the same lender that holds the previous mortgage
or by other lenders. Don't rush in; compare what the many lenders in the market have
to offer. There are online sites offering access to a complete and up-to-date list
of lenders dealing with mortgage refinance and this will make the process a lot
easier.


Web Site: http://www.venturecapital.20m.com

Contact Details: America Funding Network
P O Box 60882
Chicago, IL. 60660

(641) 715-3800