Tuesday, September 7, 2010

Refinancing Advice from Richard Balles of A-K Financial

It has been said that you should never refinance your home loan unless your new mortgage rate is at least two percent lower than your old mortgage rate. Richard Balles says, this is horrible mortgage advice. Instead of buying into the two percent rule of mortgage refinancing it makes more sense to base your decision on a cost and savings rather than this urban legend of financial advice. This is of course if lowering your payment is your goal when refinancing your home.

Richard Balles also says that, we all know that you loan amount and mortgage rate determine your monthly payment amount. This is done with a repayment process known as amortization. The lower your mortgage rate, the lower your monthly payments will be; however, there are refinancing costs you’ll need to consider also. I am of course referring to origination fees and closing costs. When answering the question Should I Refinance My Mortgage for you, it makes good financial sense to weigh the savings from your new, lower monthly payment against the cost of taking out the new home loan. Richard Balles as a financial adviser at A-K Financial can help you determine if this is a plausible venture. If you can live with the amount of time it will take to recoup your origination fee and closing costs than mortgage refinancing makes good sense for you.

Richard Balles also take our attention that, there are of course other reasons for refinancing that don’t result in a lower monthly payment. Many homeowners use risky adjustable rate loans to purchase their homes and are facing huge payments or high interest payments when their teaser rates expire. Refinancing these risky home loans with a fixed 30 year home loan is nearly always going to be the right choice says Mr. Richard Balles. According to Richard Balles another common reason for refinancing is to borrow cash against your home equity which could also result in a higher monthly payment. Depending on your needs and wants, A-K Financial can assist you in acquiring your goals.

Richard Balles here would ask you a question. Once you’ve answered the question Should I Refinance My Mortgage the question becomes how can I do this without getting ripped off? There are a number of unnecessary fees and markup of your mortgage rate for a double commission that Richard Balles at A-K Financial will help you avoid to make sure you get the most for your refinancing dollar.

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