A1 Debt Consolidation Loan Company provides fixed rate refinance opportunities for homeowners to use their mortgage to consolidate adjustable rate interest. Refinancing replaces your existing loan with another lower interest rate loan for the same amount. This can save you tons of money when market interest rates drop 1 or more percentage points lower than your present rate. Refinancing can be used to reduce your interest rate, change the term of your loan, or to consolidate your debts.
When you refinance your home don't forget to roll your credit card debts into the new mortgage.
Refinancing your home mortgage could be the choice you look back and consider to be a turning point for recovering command of your finances. Recapture the peaceful mind-set you get when you are debt free.
Refinancing variable rate debt can take a $500 monthly savings and convert it into an interest bearing $6,000 savings account in just the first year.
Refinance to Consolidate Debts:
With equity in your home, refinancing is the smartest way to consolidate your debts. Some loans use your home as collateral. Refinancing, on the other hand does not. You can just throw your debts into the amount owed when you refinance. One monthly payment; one low interest rate.
Refinancing is the best route to take because the interest rates are lower than any of your other consolidating options. If you have lots of equity and good to excellent credit, then this is your best option.
Change your Adjustable loans to fixed rate loans:
Rates are at their lowest right now. Changing your adjustable rate to a fixed rate is a smart idea. Refinancing is the best way to do this. Don't be caught in the tail spin when rates go up- let an agent help you today!
Feds Turns Down Request for 2/28 ARM Flexibility
In finalizing the subprime mortgage guidance, federal banking regulators rejected industry requests for flexibility in helping subprime borrowers by refinancing them into another adjustable-rate 2/28 mortgage. The guidance, issued June 29, suggests that workout arrangements should provide permanent affordability, and that lender/servicers might consider converting ARMs into fixed-rate mortgages to provide "financially stressed borrowers with predictable payment requirements." Comptroller John Dugan said the emphasis is on putting borrowers into loans they can afford. "It doesn't do any good to keep putting people into loans that they can't repay," he said. In underwriting subprime 2/28 ARMs, regulators expect lenders to qualify borrowers at the fully indexed rate, "regardless of any interest rate caps that limit how quickly the fully indexed rate may be reached." The payment schedule should be fully amortizing over 30 years, unless it is a balloon loan.
Federal Reserve Warn Against Stated Income Sub-Prime Loans
Federal financial regulators have issued final subprime guidance cautioning against the use of stated-income and reduced-documentation mortgage loans unless there are "documented mitigating factors that clearly minimize the need for verification of a borrower's repayment capacity." The Statement on Subprime Mortgage Lending calls for "a fully indexed, fully amortized qualification for borrowers" and "prudent" consumer protection standards. The standards should include "clear and balanced product disclosures to customers and limits on prepayment penalties that allow for a reasonable period of time, typically at least 60 days, for customers to refinance prior to the expiration of the initial fixed interest rate period without penalty," the statement says. The Mortgage Bankers Association characterized the guidance as "a strong statement that will help curb abuses" but that will likely "constrain consumer credit choices." The association urged Congress to do two things. "First, quickly pass FHA modernization in order to restore affordable credit options for worthy borrowers, and second, refrain from passing legislation that will further constrain credit by forcing lenders to deal with rigid underwriting standards and litigation risk," the MBA said. "Instead, Congress should focus on legislation to improve transparency and accountability throughout the mortgage transaction."