Finance Articles

Types of Mortgage Refinance Loans

Technically, you can take out any kind of loan and use your loan proceeds to pay off your mortgage. Viewed this way, any type of loan can be a mortgage refinance loan. However, some have restrictions (i.e. some loans do not offer a big enough credit for paying off a mortgage) so they don?t make good refinance loans.

This article is about the loans you can use for refinancing your mortgage. Since these are loans that banks have specifically designed for paying off mortgages, they are also known as the common types of mortgage refinance loans that are available in the market.

According to Variability of Interest Rate

Fixed-rate mortgage refinance loan: This type of home refinance loan is one where the interest rate is locked-in to a fixed amount for the whole duration of the loan. Simply put, the home refinance loan will be kept at a constant interest rate for the whole life of the balance.

Variable-rate mortgage refinance loan: This type of home refinance loan is one where the interest rate varies with a certain, predetermined index. The interest rate, in this case can be equivalent to the index or greater than the index by a fixed margin. In this type of mortgage refinance loan, there is usually an introductory rate period where the interest rate is fixed for a few years (3 and 5 years are common) at a very low rate. After this introductory period has passed, the rate becomes a true variable rate ? subject to the whims of the market. However, there?s usually a cap or interest rate ceiling to protect the consumers from excessive index rate increases.

According to Payment Terms

Interest-only mortgage refinance loan: This type of mortgage refinance is one where you will be asked to pay only the interest for a certain period of time. After the set interest-only payment period has passed, you will have to start making payments towards the principal.

Balloon-type mortgage refinance loan: This type of refinance loan is one with an initially low, fixed interest rate (the actual period varies from lender to lender but this period doesn?t usually exceed 10 years). After the period for the low interest has passed, however, full payment is required on loan balance.

Fully-amortizing mortgage refinance loan: This type of refinancing loan is one where monthly payments are a combination of interest charges and payments towards the balance. This type of loan is ideal for people who wish to add to their equity as well as reduce the balance with every payment.

Home equity mortgage refinance loan: This type of loan is one where you actually apply for a loan using the equity you have stored in your home as your security for the loan. In this case, you give up your equity for money which you can get as outright cash or as a revolving credit line. Such a loan usually has a very good interest rate. However, this type of loan is ideal for mortgage refinancing ONLY if you have enough equity in your home to pay off your original mortgage lender. This can happen if your home has appreciated considerably. If you don?t have enough equity to pay off your original lender, you will only be taking on a second mortgage, not a refinancing loan.

LoanGuru.org and HomeEquityLoanStore.org provide professional financial services with free quotes form multiple lenders: equity loans, refinance loans, debt consolidation and other types of loans for any individual?s financial needs.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Answering Services For Finance And Real Estate
The worlds of finance and real estate are becoming linked in consumers' minds these days, as news reports shout doom and gloom about the United States economic crisis Americans are calling their financial services providers in droves with questions about their mortgages, their property values, their stocks

Bills.com Offers Powerful Information to Master Personal Finance
Experts, more than 200 tips available for consumer money issues

Gaming Alerts Scores Largest, Single Investment On Hit TV Show -- Dragons' Den, Theo Paphitis, Invests in iGaming Sector for a Massive £200k
BBC's reality investment program Dragons' Den has made an investment in online gaming site www.GamingAlerts.co.uk. Aired on the 22nd of October, Emmie Matthews and Ed Stevens, founders of the site, recieved a £200,000 investment for their gaming site; marking the single largest amount ever awarded on the immesely popular program.

Independent, Third Party Mortgage Advice is Now Available Online for Borrowers at Trusted-Mortgage-Advice.com
Consumers can now get an independent and unbiased review of their proposed mortgage loan without worrying about the counselor trying to "lure away" their application to another lender. Certified loan advisers at www.Trusted-Mortgage-Advice.com will review the terms of your proposed mortgage loan and make specific recommendations for consumers to use in negotiating the best rate and closing costs with their lender.

Assumed vs. Subject to Finance
There is a difference between an existing note secured by deed of trust and being assumed, and a sale subject to a note and deed of trust.When a buyer assumes an existing loan, he signs and Assumption agreement with the lender.

A Bad Credit Mortgage Broker Can Turn You From A Walking Liability To A Sound Investment
Who does not fear risk? We all do, especially when it involves money. While risk is an inherent part of business, a good businessman chooses risks wisely. This is especially true in the mortgage industry which is rife with unscrupulous lenders and unreliable borrowers.

Mortgage Refinance Loans
Within recent decades mortgage loans have become an everyday occurrence, spreading over all the groups of the society. The necessity and importance of mortgage loans are doubtless, therefore everyone who wants to take advantage of mortgage should gain a complete understanding of its types, relevant terminology, benefits and such options as mortgage refinance.

Caribbean Real Estate Investment Opportunity Offered by SkyBeachClub.com
Eleuthera Island, Bahamas to be home to new luxury resort. Gated beach club community will feature private resort amenities, incorporate peaceful, easy-going Caribbean lifestyle and offer prime Bahamas real estate for sale.

Taxation of Isle of Man Companies from April 2006
At the present time a company incorporated in the Isle of Man, owned by non-residents and which complies with the other statutory requirements, is not liable to Isle of Man taxation. Whilst locally trading companies pay tax at 18%, a qualifying offshore company pays a flat annual tax of £475 or £1,000.

Active Reasoning Names Curtis Dudnick as New VP Finance -- Senior Finance Executive Brings Proven Experience in Guiding High-Growth Companies
Active Reasoning, the leading provider of IT Governance Automation software, today announced the appointment of Curtis Dudnick to the position of vice president of finance.

Process And Eligibility To Secure A Home Mortgage Loan
Securing a home mortgage loan can be tough unless you know the basics. This article adequately expounds everything from tips to documentation. Read up for more information.

Genesis Business Group Offers Investment Opportunity: Four Billion Dollars in Them Thar Mica Mine Hills
Four billion dollars of mica minieral reserves located in Alabama. The largest scientifically proven reserves in the Americas.

Wholesale Access Survey: Scotsman Guide Again is Most-read and Most-used Mortgage-industry Publication
The national mortgage publications capture majority of readership among mortgage originators.

The Subprime Mortgage Meltdown ? Overview And What We Learned
The third and fourth quarters of 2007 saw the end game of one of the most unbelievable runups on the housing market that the United States (and to be honest) the world had ever seen; mortgages were going into foreclosure, foreclosures were doubling from year end to year end, and several dozen mortgage lenders declared bankruptcy within a two week span