Mortgage : Home Loans : Refinance : Home Equity Loans

By Ed Grinslade

There is no doubt that the interest rates have risen by a lot and are continuing to go rising almost every day. Now this makes a lot of people quite afraid to refinance their loans. However there are some steps to do to help cope with this situation.

Here are some of the thing you can do in order to refinance even when the rates are rising:

Do not panic

One thing that will prevent you from refinancing successfully is panicking. Interest rates are very erratic as they follow the quirks of the market. Indeed it is true that mortgage rates grow faster than they fall, sudden jumps can easily be erased in the following week.

As of press writing, the rate for 30-year fixed mortgage loans is going up to about 7 percent, but it still is considered to be among the low ranks when compared to previous years. A small percentage increase will just be a matter of a few tens of dollars a month, which probably would not hurt. So go ahead and refinance and do not panic.

Consider getting a different loan product

Refinancing today is probably better than in the past in terms of the wide variety of options for your. When there used to be only long-term fixed rate and short-term adjustable rate loans some years ago, now, you have the option to get hybrid types of loans that allow you more flexible options.

These hybrid loan products allow you to get initially a fixed-rate mortgage for a certain number of years, and an adjustable rate mortgage at the last year. This gives you time to enjoy a fixed rate during the initial stages of the term when you might want more predictability with your monthly payments and then an adjustable rate during the last stage or stages of your loan when you could afford some flexibility.

Avail yourself of shorter periods of commitment

Little do people know that lenders do offer different commitment periods that greatly vary from 30 days to as long as 60 days or even longer. Commitment periods is basically the !

time all
otted by the lender for you to close the loan, this is usually quoted by lenders as 45 days. However, if you have the complete paperwork at hand, and you have a good credit record, you could shorten this commitment period and close the loan within just 30 days.

Shortening your commitment period is good because lenders usually would provide you with a reward for closing the loan faster than expected. And rewards usually come in the form of slightly lowered interest rates. While during normal circumstances the rate decrease is not significant, it may matter much during these times when the rates are rising steadily.

Try getting your second mortgage from other lenders

You do not have to get stuck with the same financial institution for your refinancing. You can find other lenders, perhaps a credit or thrift union, or even a local back that may offer very attractive rates for Home Equity Loans despite the rising rates in the market. Just like when doing your loan for the first time, you can also shop around for lenders when you are refinancing.

Get a longer term for your refinancing

If the rising rates make your monthly payments unaffordable, then you may consider getting longer terms for your refinancing. Longer terms would mean that your monthly fees would be lower even though the interest rates have risen.

If you have a VA Loan can you refinance

Yes, the VA Home Loan Guaranties provides veterans refinancing for:

• Refinance an existing VA home loan.
• Refinance an existing VA loan to reduce the interest rate.
• Refinance a manufactured VA home loan to acquire a lot.
• Refinace an existing home to make energy efficient improvements up to $6000.
• Refinace an existing home to reduce the term of your loan from 30 years to 15 years.

For more information about a VA Loan check out this excellent free report: http://VA-Mortgage.us/

In summary

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You m
ust be careful however when deciding to get longer terms for your refinancing. Ultimately you would end up paying more than you would with a shorter term, but if that is the only way you could afford to pay for your refinancing monthly dues, then that might be your only option.

The rising rates in today

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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This entry was posted on Wednesday, October 25th, 2006 at 2:26 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.