Is it time to refinance your mortgage

Have interest rates dropped since you first bought your house? Are you in a considerably better place financially and credit wise than you were when you first got your mortgage? Are you looking for a way to lower your monthly mortgage or loan payments? If any of the above are true, then it may be time to take a closer look at a refinance mortgage.

A refinance mortgage, or 'refi' as it is popularly referred to, is a loan taken out specifically to pay off an existing loan for the purpose of lowering your current monthly payments - or reducing the total amount of interest that you'll pay. Refi loans become more popular when interest rates drop significantly, though there may be good reasons for you to consider a refinance mortgage loan even if the general interest rates have remained the same or increased. How does refinancing your current mortgage lower monthly payments and when should you consider a refinance mortgage loan?

Suppose that you bought your house with a mortgage loan from a local lender. Because of your lack of credit history and your decision to put down a small down payment, you ended up with an interest rate that was slightly higher than average. Five years later, the standard interest rates have dropped by nearly a full percentage point - which puts them nearly 3 percentage points below the interest rate on your current mortgage. You've been with your current employer for seven years, lived in the same house for five and have built a solid history of on-time payments on your mortgage and credit cards. You're in the ideal situation to seek a refinance mortgage because:

1. Your credit rating nearly guarantees the lowest interest rate available on new loans.

2. A drop of 3 percentage points on your mortgage is significant. Most experts recommend considering refinancing if the new interest rate is at least 1 full percentage point lower than your current interest rate. In fact, drops of as little as half a percentage point in the APR can significantly lower your monthly costs.

3. Your original mortgage carries a higher interest rate than market rate because of financial circumstances that no longer exist.

One other reason you might take out a refinance loan is to shorten the term of your mortgage. If you originally took out a 30 year mortgage at 5.25% APR, refinancing the loan for 20 years, even at the same APR, will lower your overall cost considerably though your monthly payments will be higher. Still, if you're in significantly better financial circumstances than you were when you took out the original mortgage, the overall savings could make it worth your while to refinance.

There are several factors to consider when deciding whether or not to refinance your existing mortgage. Most mortgages carry an early repayment penalty, for instance. There are also fees and closing costs associated with the new loan to add into the mix. You'll need to consider all the costs of taking out a new loan against the possible savings of a lowered interest rate before you decide if it makes sense to refinance your mortgage.

How to fix your credit permanently

Our treacherous financial situation in this country like the infamous sub-prime mortgage meltdown has consumers wanting to get physically ill just thinking about it. This financial epidemic has not affected just personal lives, but a huge portion of “mom and pop” small business owners as well.

Losing their homes and business to foreclosure, losing their jobs, and losing their financial dignity has become the norm all across the country, especially in the big cities and the suburbs surrounding them (west and east).

Throw in the ever-weakening dollar and rising food and fuel prices a we have, in the eyes of many Americans, a national crisis on our hands. Then what? Hire an over-priced debt consolidation company or an attorney to and fight for you credit’s survival. Sure, if you feel fine shelling out a small fortune from the money tree in your backyard.

Or, you could pay a company like Trade Line Solutions $5,000 (average cost) to attach you credit to a seasoned corporate revolving credit account(s). They say it will increase your credit score up to 200 points in 30 days, and it usually does. Although, how many people in a negative financial and credit situation, have that kind of money to lie out at their fingertips? Not many I would imagine. I guess that is where budget comes into play.

You could easily go out to your local book store like Barnes and Nobles or Walden Books and purchase a “How To” for Consumer Credit Repair. Unfortunately, for this inexpensive solution (about $25), you still run the risk of unintentional and indirect misinformation due to the fact that the credit laws are ever-changing. A publisher may not update the books as fast as the credit law changes. It takes time to research changes, make the correct changes and editing, publish new books, recall old books (off the shelves), and deliver new books to the bookstores. By that time the law may have changed yet again.

The one solution I stand by for the many consumers with a moderate budget would be a Credit Repair E-Book / E-Kit. There are many reputable Credit Repair E-Books on the internet such as Credit Bible Secrets ($69) and Consumer Victory Credit’s - Credit Restoration E-Book as well. The growing favorite by far is definitely the latter. Consumer Victory Credit’s E-Book is a growing favorite among the consumer base due to the fact that it’s Author is a seasoned Mortgage Banker and Private Real Estate Investor who has been feet on the ground in this field for over 10 years. In addition the book is constantly updated with the correct credit laws and more importantly, it will only set you back about $10 bucks! Implementing these credit tactics will most certainly ensure permanent credit repair if applied correctly. There is light at the end of this dark financial tunnel and for many it’s called ConsumerVictoryCredit. com. Don’t take my word for it, you be the judge. Good luck in you quest for perfect credit.