Loans and mortgages – Smart way to slash your car payment

.
Refinancing isn’t just for homeowners anymore. You might never have thought about it, but refinancing your auto loan could slash your monthly payment.

You should consider refinancing if interest rates have gone down since you bought the car. It’s also a smart option if your credit rating has gone up because you’ll be eligible for a lower rate.

Applying online can get you through the process in just 10 minutes. Visit a site like www.eloan.com that offers auto refinancing options. Also try www.capitaloneautofinance.com, where your can look at available rates and calculate what your new monthly payment might be.

To compare the rates of lenders in your area, visit www.bankrate.com. They will give you contact information and tell you whether each lender charges a fee.

Usually lenders do not charge fees to refinance your car loan, but you will have to pay to have your title transferred at the local Department of Motor Vehicles. The state charges anywhere from $5 to $65 transfer the lien. That’s little to pay, though, to save thousands of dollars over the life of your loan.



All the best,



Timben

Loans and mortgages – Stay ahead of the market

.
Once out of every three people buying a house today will borrow money with an adjustable-rate mortgage (ARM). Interest rates for an ARM are usually lower than fixed-rate mortgages – at first. But there is no guarantee market rates won’t rise suddenly, and your mortgage payment will rise with them.

If the economy shows signs of inflation, go ahead and convert that ARM to a fixed rate before your monthly mortgage payments jump. It could save you money and save your house.



All the best,



Timben

Loans and mortgages – Save steps and money

.
Refinancing your mortgage can cut your interest charges, but what about cutting the cost of refinancing? If you’ve refinanced once or twice before, you can knock at least $400 off the closing costs using what is called, “streamlined refinancing.”

Streamlined refinancing means you skip some of the steps you had to take last time you refinanced. If it’s been two years or less since you refinanced, look into saving in these areas:

* Use the same attorney and lender. You will pay less in fees because they have already done the background work, and you will avoid state mortgage taxes.

* Ask you lender to use the appraisal plan from the last closing, and cut $200 off your closing costs.

* Use the plot plan from last time, and save another $150.

* Update your title insurance policy instead of writing a new one, and save from $400 to $1,000.

If you have a loan from the Federal Housing Administration (FHA) and you’re kept up with payments, you can take advantage of its streamlined refinancing package.

No face-to-face meeting is required, you pay no underwriting fees, and you don’t need an appraisal. You don’t even have to undergo credit check or income verification. This refinancing is available strictly to lower your monthly payments. It is ideal if your credit situation has improved since you first took out the loan.



All the best,



Timben

Loans and mortgages – Pick the right time to refinance

.
Refinancing your home can save you thousands, but only if the time is right. Before you decide to refinance, ask yourself a few questions:

* How much will I save each month?

* How much will it cost to refinance, and will I live here long enough to make it worthwhile?

* Will the new term be the same or shorter than the term is now?

Experts say if you can drop your interest rate by at least one percentage point – preferably two – and plan to stay in the house at least 18 months, refinancing may be a good idea.

The refinancing will cost roughly $2,000, so figure out how long it will take before you break even and start saving. If you move out of the house before that time, it will actually cost you more to refinance.

Try using the Mortgage Refinance Breakeven Calculator at www.myfico.com. It’s a handy tool when you’re dealing with a lot of numbers. Click on Credit Education, and look in the Calculators section to find the Mortgage Refinance Calculator. Run your figures through the calculator to find out when you would start saving if you refinanced.



All the best,



Timben

Loans and mortgages – Split payment for huge savings

.
Another way to pay less interest is to split your monthly mortgage payment in half, and pay that amount every two weeks. By making biweekly payments instead of monthly payments, you’ll make an extra mortgage payment by the end of the year.

For example, if your monthly payment is $2,000, and you pay that amount 12 times a year, that’s $24,000. On the hand, if you pay $1,000 every two weeks, or 26 times a year, you’ve paid $26,000 at the end of the year. That’s a difference of $2,000 – an entire mortgage payment.

Check first to see of your lender charges a pre-payment fee. And don’t get involved in a “biweekly prepayment program,” where the lender charges you an annual management fee or an even bigger set-up fee with monthly service charges. It’s not worth it.



All the best,



Timben