Refinancing means applying fоr a secured loan intended tо replace аn existing loan secured bу thе ѕаmе assets. Refinancing mау bе dоnе bу аnу issuer оf debt, ѕuсh аѕ corporations аnd governmental bodies, аѕ wеll аѕ holders оf rеаl estate, including home owners. Mаnу owners оf bоth commercial аnd residential rеаl estate uѕеd сеrtаin analysis in thеir refinancing decisions knоwn аѕ thе "2-2-2" rule. Whаt thiѕ means iѕ that: if interest rates hаvе fallen twо points bеlоw thе existing mortgage, if thе owner hаѕ аlrеаdу paid twо years оf thе mortgage, аnd if thе owner plans tо live in thе house аnоthеr twо years, thеn refinancing iѕ feasible. 

Benefits оf Refinancing 

Refinancing a mortgage саn lower thе monthly payments оwеd оn thе loan. Thiѕ iѕ dоnе bу changing thе loan tо a lower interest rate, оr bу extending thе period оf loan, thеrеbу spreading thе re-payment оut оvеr a lоng period оf time. Thе benefit оf thiѕ iѕ thаt thе money saved саn bе applied tо paying dоwn thе principal оf thе loan, аnd thiѕ will furthеr reduce payments. 

Refinancing аn adjustable rate mortgage intо a fixed rate оnе hеlр tо remove thе risk оf interest rates increasing exponentially. Thiѕ will furthеr hеlр in stabilizing thе interest rate оvеr a lоng period оf timе аnd reduce thе risk аѕѕосiаtеd with аn existing loan. 

Refinancing a loan саn hеlр in paying оff high interest debt ѕuсh аѕ credit card debt, with lower interest debt ѕuсh аѕ thаt оf a fixed rate home mortgage. However, non-tax Deductible debt, likе credit card оr car loan debt саn bе transformed intо tax deductible debt ѕuсh аѕ home mortgage, resulting in lowering one's taxes. 

In addition, refinancing iѕ аlѕо uѕеd tо liquidate ѕоmе оr аll thе equity thаt hаѕ accumulated in rеаl property during thе tenure оf ownership. 

Facts Yоu Shоuld Knоw Bеfоrе Refinancing 

Credit score: if уоur credit score iѕ low, уоu muѕt improve оn it firѕt bеfоrе соnѕidеring refinancing оthеrwiѕе уоur interest rate iѕ gоing tо bе high. But thоѕе with a high credit score will nоt encounter аnу problem in terms оf high interest rate. 

Planning уоur budget bеfоrе refinancing will enable уоu tо knоw thе cost оf thе mortgage, thе benefits аnd savings. If thе savings will hеlр paying оthеr debts ѕuсh аѕ credit card bills аnd unsecured loans, thеn refinancing саn bе a good decision. 

Yоu ѕhоuld knоw if уоur сurrеnt mortgage iѕ thе bеѕt deal fоr уоu аnd fоr hоw mаnу years dо уоu intend tо kеер оr stay in уоur home. If уоu intend tо sell уоur house in lеѕѕ thаn thrее years timе thеn refinancing mау nоt bе good fоr you. But if уоu intend tо kеер уоur home fоr a vеrу lоng timе thеn refinancing саn hеlр уоu pay оff уоur home sooner with ѕоmе savings added. 

If уоu bеliеvе thаt refinancing iѕ a good decision fоr уоu thеn shop fоr a good lender. Compare thе total costs уоu nееd tо pay оff with уоur existing mortgage, аlѕо add оr соnѕidеr fees аnd charges уоu mау incur whеn уоu tаkе оn a nеw mortgage. Finally, make ѕurе thаt thе interest rate iѕ lowered, ѕау аbоut twо tо thrее percent lower thаn уоur сurrеnt mortgage. 

Posted by Randy Blakeslee

Winter dryness can be a headache for your home. It can cause allergies, skin dryness, cold and other health related diseases. Humidifier is the ultimate answer to deal with this issue but if you are finding it too expensive for your budget, there are alternatives of humidifier available as well.
Here are some 10 household hacks to humidify the air.
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Place some washed clothes or damp towel on radiator to humidify the air. The warm air will evaporate the water in the fabric. These water vapors will humidify the air. You can also place water in some container on top of the radiator.
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You can just cook food and humidify the air. All you have to do is use stovetop for cooking. The moisture from the food will do the same job while cooking.
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​Need moisture in the air? Just boil water in a pot. Boil the water till its boiling point and then remove the lid from the pot.
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Don’t use the exhaust to fan out the steam from hot shower. Just leave the bathroom door open and let the steam dampen the air.
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If you use bath tub for showering then you can make use of that hot water even after bath. Don’t drain the water and leave it there to evaporate. This way you can recycle the waste water for better use.
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When using the ​dishwasher don’t use the drying cycle. Instead open the door of the dishwater and let the dishes air dry. The steam will dampen the air. You will also be saving electricity cost by not using air drying cycle.
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​Buy some potted houseplants. Plants take up water from the soil and then release it into the air. This process is called transpiration. This water can become your rich source of humidity inside the house. So just by watering the plant you can hit two birds with one stone.
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They will make your house look great. They are beautiful on the eyes and bring happy feelings. They water inside the vases along with the transpiration will provide the air the relative humidity it needs. 
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You can just use a spray bottle’s finer mist to damp the air. It will be effective, if you are spraying now and then. 
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​You can use small sized fountain decoration pieces to humidify the air. The fountain will also help in cleaning the air.
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Mortgage Market Corp.
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Rents are skyrocketing across the U.S. so it is cheaper to buy a home. According to data compiled by National Association of REALTORS®, about 1/3 of home buyers are purchasing for the first time. Forecasts show that more than 6 million people will buy home this time around.
If you are jumping on the same boat of home-ownership then ask yourself these 5 questions to determine where you currently stand and what you can afford to achieve. 
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Buying home might be the biggest purchase you are going to make in your lifetime. Be smart and make plans about it. Personal finance is the most important factor to consider. Your future decisions will have an impact on the homeownership process. So, keep your future goals in mind. Planning will help you make smarter moves and remain ahead of the curve.
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People tend to look at the maximum price of the home. That is not a right question to ask yourself. The right question is how much you can afford to pay comfortably on monthly basis. The maximum monthly payment is more important than maximum home purchase price. Make a monthly budget inclusive of all the future recurring costs. Determine whether buying a home of particular size and price is affordable on month to month basis or not?
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When buying a home you also need to set aside some money for contingencies. Financial experts suggest that you should have at least 6 months of cash reserve for this purpose. This money should not be used for estimating the amount of down payment you can afford. The down payment percentage can vary from 0 to 20 percent or more.
The Department of Veteran Affairs and Aepartment of Agriculture, both offer homes without any down payment. There are also some programs in the market that can be a suitable option for lowering down payments like FHA (Federal Housing Administration) and Fannie Mae housing programs, both allow very low down payments. These laons hav eligibility eligibility.
Majority of the people that are going for a mortgage with low down payment have to settle with Fannie Mae, Freddie Mac or standard FHA loan. Use their data to determine which one suits your needs
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​The department of housing and urban development (HUD) has issued some guidelines for home buyers. They recommend you should set aside 4 percent of home’s cost to account for various fees and expenses. This include lender fee, title fee and government taxes.
Closing costs vary by state and you can contact your lender and talk about your options.
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​Your credit report is linked with your personal credit score. Your lenders look at the report to determine the risk. It is because credit report reflects the likelihood of loan defaulting and foreclosure.
It is a rough estimate that a lot of credit reports contain errors. These can significantly affect your score. You should review your credit report for errors time to time and file a dispute to amend mistakes in it.
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It’s always disappointing when a lender rejects your loan application. Here are 6 tips to get approval for a mortgage loan:
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​It is very important for the borrowers to pull their credit reports and order the credit score. Most of the borrowers do not request or try to know their credit scores thinking that they would have a high enough credit score to quality for the loan. Application will not be refused if credit score is high.
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Chances of mortgage loan approval will reduce if you go to your lender without cash. They often require a down payment after the approval of mortgage loan. Amount of down payment varies respect to several factors like type of lender and the loan. On average, around 3.5% down payment is required, but it can be more or less depending on the above mentioned factors. So, cash savings play an important role getting you over the board including the incurrence of some loan arrangement expenses like application fee, credit report fee etc.

​Lenders are pretty much keen to know that you’re doing a good job as a security that you would be able to pay all mortgage payments on time. Doing a low paying job or quitting it will greatly affect your chances of approving the mortgage loan request as your income status will change and the lender will not feel comfortable proceeding with the loan request.
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​Lenders are pretty much concerned about how you’re dealing with your debts. If you have a lot of debts running, chances of mortgage loan request approval will be low depending on the amounts of debts you’ve taken. Lenders often evaluate your debt to net income ratio before the approval of loan request. High debt to net income ratio means you have taken a lot of debt with respect the income you are earning, your chances for the approval will significantly reduce as lenders will not prefer you as you might not be able to pay off loan installments in future if the business faces problems. So simply, the less the level of debt, higher will be the chances for mortgage loan request approval.
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If you’re planning to bid on a house that you can’t afford or you can’t spend much or pay interest is truly unprofessionally and equivalent to wastage of time and money. It is important for you to choose houses that you love but can’t afford. The simplest process to get pre-approved is to contact a mortgage lender with the submission of all required information. It includes everything like the interest rate and the total amount you can afford for this mortgage. Your mortgage will immediately start once the lender accepts your bid.

​Lenders are not much interested how much you spend for the mortgage, they are rather interested in how much you can payback based on your credit and income reports. You can purchase a more expensive house than your budget but you need to be smart enough and keep all the expenses limited.

​1. Payment History 35% Impact
Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older items.

2. Outstanding Credit Balances 30% Impact
This factor marks the ratio between the outstanding balance and available credit. Ideally, you should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.

3. Credit History 15% Impact
This portion of the credit score indicates the length of time since a particular credit line was established. A seasoned borrower will always be stronger in this area.

4. Type of Credit 10% Impact
A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only.
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5. Inquiries 10% Impact
This percentage of the credit score quantifies the number of inquiries made on a consumer credit within a six-month period. Each hard inquiry can cost from two to 25 points on a credit score, but the maximum number of inquiries that will reduce the score is ten. In other words, 11 or more inquiries within a six-month period will have no further impact on the borrower credit score. Note that if you run a credit report on yourself, it will have no effect on your score.