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Here is nine methods to ensure you have taken measures to shield your home and your equity:

1. Browse around. Costs can deviate greatly! Get hold of some lenders like banks, savings and loans, credit unions, and mortgage companies. Inquire with each lender about the best loan for which you meet requirements.

2. Examine the annual percentage rate (APR). This APR is the most significant thing to compare when browsing for a loan. this takes into consideration not only the interest rate, but also points (one point equals one percent of the loan amount), mortgage broker fees, and certain other credit charges the

lender needs the borrower to pay, stated as a yearly rate. Mostly, the lower the APR, the lower the cost of your loan. Ask will the APR change?

3. Ask about points and other fees that you'll be responsible for. The charges may not be refundable if you refinance or pay off the loan ahead of time. Also if you refinance, you may pay additional points. Points are normally paid in cash at closing, but may be put into the loan. If you finance the points, you will pay extra interest and step-up the total cost of your loan.

4. The length of the loan. How long will you make payments on the loan? If you are acquiring a home equity loan that merges credit card debt and other short term loans, do not forget that the new loan may hold you for a longer period.

5. Monthly payment. What is the total cost? Will it remain the same or change?

6. Will there be a balloon payment? A balloon payment is a big payment normally at the end of the loan, frequently after a series of low monthly payments. While the balloon payment is owed, you must come up with the money. If you can't, you may require another loan, which signifies new closing costs, points and fees.

7. Will there be a prepayment penalty? The penalty are added fees that may be owed if you pay off the loan ahead of time by refinancing or selling your home. Prepayment penalties may pressure you to hold on to a high-rate loan by making it too expensive to get out of the loan . Attempt to manage this penalty out of your loan agreement.

8. What happens to the interest rate on the loan increase if you fail to pay? A modified interest rate provision states that if you overlook a payment or pay late, you may need to pay a higher interest rate for the remainder of the loan. Try to talk terms where this provision is out of your loan arrangement.

9. Did the loan have a charge for any type of voluntary credit insurance, such as disability, unemployment insurance or credit life, ? Will the insurance premiums be included as part of the loan? And if so, will you pay extra interest and points and increase the entire cost of the loan. Without the credit insurance how much lower would your monthly payment be ? Does the insurance cover the duration of your loan and the full loan amount? When determining to buy voluntary credit insurance

from a lender, consider about whether you actually need the insurance and correspond with other insurance suppliers about their rates.

Jim's articles are from extensive research on each of his topics. You can learn more of home equity loans by visiting: Equity Loans

With two mortgages, it is tempting to consolidate the home loans into one refinanced mortgage. But, this isnt always in your best interest. Depending on a number of factors, you may find that refinancing separately may qualify you for better rates.

Refinancing Options For Multiple Mortgages

You have three options when it comes to refinancing multiple mortgages. You can combine both loans into one, or you can refinance each account separately. The other option is to only refinance the higher rate mortgage.

The rates available to you will depend on your current credit score, market indexes, and your equity. So in some cases, you may find that keeping your low rate original loan while refinancing the higher rate second mortgage will save you the most money.

As odd as it may seem, refinancing your two mortgages separately can qualify them for lower rates than combining the two. This is especially true if you have little equity.

Requesting Quotes For Mortgage Refinance

To find out which option will save you the most money, you have to request quotes. Ask for APR quotes for each of the three options from several lenders. You may find that a mortgage broker site will speed this process up by allowing you to compare multiple bids side by side.

Remember too that points should be considered as a factor in your decision. Paying points for a loan you dont plan to keep for several years may be more expensive than a higher interest loan.

Do the Math Before Refinancing Mortgage

To find the answer to which option is the best, you will have to do a little math. Fortunately, you can use an online mortgage calculator to quickly come up with the numbers.

With each loan quote, figure the difference in your mortgage payment if you refinanced. This number will show you which loan can give you the greatest savings. But, you also need to consider the cost of refinancing. So divide the amount you will save each month by the closing costs, which include points, to determine how soon you will break even.

While doing these calculations takes time, they will save you money and ensure you make the right choice.

Here are our Recommended Mortgage Refinance Companies Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.