Birmingham Mortgage Refinance

At some point during the term of your home loan, you may want to consider a Birmingham mortgage refinance. The process of refinancing your home loan entails getting a new loan and using it to pay off your existing mortgage. Often it can save some money on your monthly payments and give you the option to cash out some of the equity in your home. A refinance option works great if your income situation has changed or you have the ability to reduce your interest rate.

Variables to Consider When Refinancing

If you have a Birmingham home mortgage with a high interest rate, you should seriously consider refinancing when the rates are low. You can often lower your payments by as much as hundreds of dollars per month. Not to mention, the lower the rate, the less interest you pay on the life of your loan which can equate to tens of thousands of dollars in savings. Also, if you have an adjustable rate mortgage, when market mortgage rates are low, consider refinancing to lock in a low rate for the long term.

For persons with a lot of consumer credit (car loans, credit cards or education loans) with higher interest rates, refinancing your Birmingham home mortgage can often allow you to pull out equity to pay off the higher interest loans. This is often referred to as debt consolidation. Taking the equity out and paying off higher rate loans can save you alot of money. Just be careful not to run the debt back up after paying off. You can reduce the number of payments, just paying one loan instead of several each month. Also, keep in mind that in most cases, mortgage interest is tax deductible. Please see your tax advisor for professional advice to know exactly what tax deductions you qualify for.

Another variable to consider is the ability to pay off your mortgage early. If your financial situation has changed since you originated your loan, you may have the ability to pay more per month. You might consider refinancing for a shorter term to pay of your mortgage sooner. A shorter term can often save you tens of thousands of dollars in interest.

As you can see, there can be a number of advantages to refinancing your Birmingham home mortgage loan. As with the first time you obtained the mortgage on your property, many variables can affect your interest rate. Your credit history, current debts and assets as well as your monthly income will all have an impact on your interest rate. Also keep in mind that there may be fees associated with refinancing. Fees such as a credit report, loan application fees, appraisal and a loan origination fee. If you have a low rate now, it may not save you money when refinancing. A good Birmingham mortgage broker can help calculate whether or not refinancing is a good idea for you and your family.
nance offer.

There are many great tools available online that can calculate your savings by refinancing. You will need to know information such as your current interest rate and your current morgage balance. They can often estimate current mortgage rates and run the calculation to show you an estimate for your new payments. At this time, mortgage rates are still pretty low.

Contact your local Birmingham mortgage broker today to see if refinancing your home mortgage loan is a good procedure for you. Call WM Mortgage at 205-383-1966 for a free consultation.

Birmingham Mortgage Broker First Meeting – What Do You Need to Bring?

Birmingham Mortgage Broker First Meeting

So you are considering the purchase of a home. Most likely, you will need to get a mortgage to make the purchase. Birmingham mortgage brokers are a great resource when looking for a home mortgage. Be prepared for your first visit. Having the following items will help your Birmingham mortgage broker get started in finding you the best interest rate. A good mortgage broker can save you money up front and for the life of your loan.

Most people will want to pre-qualify for a loan. Getting pre-qualified, will let you know how much you can pay for a home. This first meeting is essential in getting started with a lender so that you can know exactly how much you can offer for the home you may want to purchase.
For your first meeting with a mortgage broker, you will need to have a good gauge of your finances. The broker will need to know your monthly income, expenses, the amount of money you have for a down payment and some information on your work history. Items needed for this meeting may include.

Birmingham Mortgage Broker Documents

 

• Balances in your bank and savings accounts (typically the past two months for starters)-Pay stubs or business tax returns if you are self-employed
• Credit card and loan statements (including auto loans)
• W-2′s and tax returns covering the last two years.
• Any other loans such as student loans-Statements from retirement plans such as IRA’s, 401K’s, insurance annuities or SEP plans

This information will help the Birmingham mortgage broker understand your current financial assets and liabilities. This information will be used to determine the risk level for the mortgage lender. All of this data will be used to calculate how much the lender is willing to loan for your purchase and help speed up the mortgage loan application process.

If you decide to move forward with this broker, you will need your checkbook. Part of the process will require the mortgage broker to do a credit check, which you will have to pay for.

Take the time to get to know your mortgage broker. Make sure you feel like it is someone you can trust and consider using a mortgage broker that is established and has been in business for some time. This is a huge investment and you should be comfortable working with this person. Often this process requires several meetings, phone calls and discussions throughout the process. Having the necessary information available will show that you are organized and serious about pursuing a home mortgage loan.

Good luck with your first meeting with your Birmingham home mortgage broker. Call WM Mortgage at 205-383-1966 for a free consultation.

Birmingham Home Mortgage Loans

Getting a Birmingham home mortgage loan can be a daunting task. Purchasing a home with a good mortgage interest rate could be one of the best investments you ever make. With the recent changes in the economy, now is a great time to purchase a home. There are two primary types of home mortgage loans.

Types of Birmingham Mortgage Loans

The first is a fixed rate mortgage. With this type of loan, your monthy payments remain the same for th elife of the loan.  Whether you finance for 30 years or 15 years or something in between, your payment is the same from start to finish. This is a great option to lock in a long term rate, when the rates are low.
The second type of home mortgage is the variable rate mortgage.  With this type of loan, your rate can change over the life of the loan. Typically, you rate is recalculated every one to three years. Your rate can increase or decrease, depending on the current Birmingham mortgage interest rates. With changes in your interest rate, your monthly payments can increase or decrease. This may be a good option if the current interest rates are high, with the hopes that they will decrease over time. Consider variable loans that have a cap, so that they can only go up a maximum amount per year and for the life of the loan.

Birmingham First and Second Mortgages

The most common mortgage loan is the primary (often called first) mortgage. This is the main loan on your home. Most consumers only have this type of loan. This loan will be active until you pay off the loan in full. If you sell your home, you will be responsible for paying the remaining balance on this loan. Keep in mind that if you wish to sell for less than the amount of your first mortgage, you will be responsible for paying off the difference. If in the unfortunate case where you are unable to make your mortgage payments, you risk foreclosure on the property.

The other type of mortgage loan is often called an equity Loan (or second mortgage). This loan is based on the amount of equity you have in your house. Often these loans can be revolving lines of credit. In this case, you can write checks on the loan, to get money out as needed up to the balance of the loan. Often this loan is used for debt consilidation of higher interest credit cards, or used to make improvements to the home. The banks that offer this loan, will be the second creditor on the property.

That is a basic overview of the types of Birmingham home mortgage loans available. Mortgage rates can vary, and the cost of obtaining a loan can vary greatly as well. Take the time to shop around and consider the services of a mortgage broker. Birmingham Mortgage brokers work with dozens of lenders, and can often find the best rates available.  A good birmingham mortgage broker will have competive loan options, and can help reduce the amount of searching necessary for you to get a great mortgage loan. Take the time to review your options completely since this can be a decision that impacts your life and finances for years to come. Working with a mortgage broker can make the process seemless and enjoyable and can also save you money, by getting a loan with a good interest rate, and minimal fees.

Good luck searching for your Birmingham home mortgage loan. Call WM Mortgage at 205-383-1966 for a free consultation.

Questions for your Birmingham Mortgage Broker

Questions for your Birmingham Mortgage Broker

Purchasing a home is a huge decision during your life. Getting a great mortgage rate can help you purchase a larger (or more expensive home) and allow you to get the most house within your budget.

A knowledgeable Birmingham mortgage broker can be instrumental in helping you obtain the best rate possible when trying to get a mortgage loan. Before you commit to a Birmingham mortgage broker, consider the following questions.

1. What is the best interest rate available for me today?

Mortgage brokers get paid a commission from banks or other financial organizations for getting a contract for you. They are committed to getting you a great rate and offer package, in order to get your business. A good mortgage lender will know that a good rate is in  your best interest. A broker will get to know your needs and help facilitate meeting as many of those as possible. The mortgage broker should also keep you aware of the rates since they tend to vary, even changing daily.

2. What are the fees?

Most of the fees today are pretty standardized. The U.S. government has standardized which fees are static and which ones can change during the process. A good broker will define these for you in advance. Keep in mind some of the dynamic fees can vary greatly, so it may be worthwhile to actually consider speaking with multiple brokers during this process to make sure the fees are competitive.

3. Can you pay off your mortgage early?

Paying extra each month can greatly reduced your total cost on the life of the loan. Make sure to ask if there are early pre-payment penalties on the loan. Most loans do not have this fee.

4. Is this rate quote for a fixed rate mortgage?

Mortgage rates vary greatly based on the economy. It is advisable to get a fixed rate mortgage if the rates are good. If the rates are currently high, with the possibility of decreasing in the future, then consider an adjustable rate mortgage. If you go adjustable, see if there is the possibility of locking in a rate in the future without paying additional fees.

5. What deposit is required?

With the recent housing market changes, most loans will require a 20% deposit. For consumers with strong credit ratings, there are options available for as little as 5% or 10% down. If you put less than 20% down, you will have to pay mortgage insurance, but there are even packages available where you do a first and second mortgage at the same time, to overcome the PMI. As the broker, what options are available.

Conclusion

Before you sign any paperwork with a Birmingham mortgage broker, please make sure you know what fees are required. Often, there is an application fee and a credit report fee, just to get things started. Try to decide on a broker before you commit, to avoid paying application fees to multiple brokers. Take your time, ask relevant questions and you should be able to successfully find a Birmingham mortgage broker to fit your needs. Call WM Mortgage at 205-383-1966 for a free consultation.