Print Article for : Mortgage Loan Refinance Calculator

Your Online Guide » Loans Guide » Home Loan Mortgage Refinance Mortgage

[M659]Mortgage Loan Refinance Calculator

by Chris Rivers, Chr

Listen up Connecticut homeowners. Now is the perfect time to refinance your adjustable mortgage into low FHA mortgage rate. The FHA guidelines have changed to provide major benefits for Connecticut mortgage loans. The changes will allow you to refinance your Connecticut adjustable rate mortgages into a low FHA mortgage rate.
If you are considering refinancing your Connecticut home mortgage then you need to be aware of the new FHA guidelines.

The changes are as follows:

1. The program is temporary and only available until December 31st, 2008.
2. Your current mortgage must be a non-FHA adjustable mortgage that has already reset (means payment has increased).
3. If you have fallen behind on your mortgage due to the increase in the payment since it started adjusting you may still qualify.
4. Your mortgage payment must reflect 6 month's prior to your mortgage payment changing you had on-time mortgage payment history.
5. If there is sufficient equity in the home FHA may still insure mortgages that include missed mortgage payments.
6. If the loan amount that you need exceeds FHA mortgage amount limits or LTV limits then you may qualify for a second mortgage.

The main reason for this change is due to Connecticut mortgage lenders that have closed or filed bankruptcy. These lenders gave Connecticut adjustable rate mortgages with low introductory interest rates and payments that have recently reset and increased. Reset means that the rate and monthly payment has adjusted upward based on a number of factors determined by a group of banks or lending institutions.

With a low FHA mortgage loan you can have a FHA loan rate in addition to FHA refinancing assistance if you have a circumstance that contributes to your late payments.

While previously you might have chose an ARM to take advantage of a lower introductory rate and count on either moving, refinancing again or simply absorbing the higher rate after the introductory rate goes up, you no longer have to take that risk when you can take advantage of a FHA government home loan that will give you the stability and monthly savings you need.

When you refinance your residential mortgage loan you can enjoy a variety of money saving benefits. This is because there are several alternatives to your current mortgage. Refinancing your home loan gives you a chance to review the terms of your current mortgage and choose terms that can help you save money in the long run — often thousands of dollars.

Saving on interest

If you refinance your residential mortgage loan to a lower rate, you can save thousands of dollars on interest alone. If you have a high rate, you can refinance to a lower rate. If you have an adjustable rate mortgage (ARM), you can refinance to a fixed rate. Changing your terms so that you pay less in interest is one of the most basic ways that people can save money on their home loans. Additionally, in most cases, the interest from your residential mortgage loan refinance is tax-deductible, meaning that you save money when it comes to paying Uncle Sam as well.

Getting a shorter term

One thing you can do to save quite a bit of money in the long run is to refinance your residential mortgage loan and change the term length so that it is shorter. The shorter the loan term, the less you pay in interest. You will, however, likely pay more money each month on your payment, since you are not spreading the loan payments out over 30 years. Many people, however, find that's a small price to pay to save thousands by refinancing their mortgages to be paid off in 15 years.

Money in your pocket

If you refinance your residential mortgage loan to a lower rate, you will probably find that you have a lower monthly payment. This can be very beneficial in that it frees up some money each month for you to use on other things. So, not only do you save thousands in interest over the course of many years, but you also experience more money in your pocket in the here and now.

Getting rid of debt

If you have too much debt for an unsecured loan consolidation, you can still get a debt consolidation loan if you refinance your residential mortgage loan. Most people, when they refinance, have enough equity that after the old mortgage is paid off with the refi, there is money left over to pay off the bills and try to be in great shape.

Article Source : How To Refinance Mortgage

About Author

Both Chris Rivers & L. Sampson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Chris Rivers has sinced written about articles on various topics from Other Business, Home Loan Mortgage and Other Business. Chris Rivers, a Connecticut FHA mortgage broker, specializes in offering low FHA interest rates for even if you have late payments o. Chris Rivers's top article generates over 6600 views. to your Favourites.

L. Sampson has sinced written about articles on various topics from Free Credit Report Score, Bankruptcy Law and Finances. Visit to find more information about a. L. Sampson's top article generates over 74000 views. to your Favourites.