Thursday, July 23, 2009

Better Mortgage Refinancing - Tips to Get a Better Home Loan Then You Currently Have

Do you Want Better Mortgage Refinancing

One of the primary reasons for mortgage refinancing is to be able to get another loan for a better rate. If you can't get a better rate or better terms when you refinance then what is the point of refinancing. Although, some people are forced to deal with that situation in the event that they're willing to shoulder higher costs in exchange for the benefit of a longer term.

In any case, most people would want to get a better deal. Fortunately there are several lenders and financial institutions out there waiting to help you. But before you approach them here are several tips you can use to help your chances in getting lower cost of debt.

Tips To Get a Better Home Loan

Probably the most dramatic thing you can do is to reduce the term from 30 years to 20 or if possible 15 years. You should be able to shave a significant number of points because shortening the tenor will do two things. First, it will send a signal to your new financier that you're confident of paying them within a shorter time frame. Second, fundamentally a shorter time line means a lesser amount of risk, which should translate to reduced costs.

What If I Cannot Afford To Shorten The Term

If shortening the timeline isn't an option for you then consider going to your banker first with which you already have the longest history. If your credit record with them is good, then they'll most likely perceive you as a relatively lower risk. A plus side to this is that they pretty much know how you transact, your average daily balance in your account, the bills you pay through them, etc.

By Andrea D Johnson

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