By Tim Renolds
One hundred percent mortgage refinancing enables you to use
your equity in borrowing and at the same time could very well
make your interest rates lower. In order to be approved for a
refinance that is cash out, you will have to have perfect
credit, in all ways. If you do not have perfect credit you
have to obtain a sub-prime lending agent or obtain some type
line of credit.
One hundred perfect mortgage refinancing enables you to use
total equity within your home, when you cash out any part of
your equity, you increase your refinance rates. However, these
increased rates will still be significantly lower than if you
were to say, obtain a second mortgage. If you do not possess
any type of equity, you can or will probably have to obtain
some insurance called private mortgage insurance. If you opt
go with a sub-prime lending agent you will not need to worry
about the premiums.
A lenders first and foremost question or assessment, is
or not you have the ability to repay the mortgage loan. This
where equity comes in, it gives you a sort of cushion to
on. If you do not possess any form of equity, the lending
will look at a variety of other factors, for examples, cash
assets, credit history, and your income. Additionally, they
will look at all of your debt that you are currently paying
such as, any student loans, credit cards, or various other
types of loans. This is then compared to your income, also
has your income/debt ratio. The more debt you possess, the
likelihood of borrowing decreases. Your best bet is to reduce
or eliminate your present debt before deciding to refinance.
This is where a sub-prime lending agent can come in handy. You
see, your past history of payments and credit, makes for a
decisive point in a lending agent, sub-prime lenders, are
willing and able to help those with less than perfect credit
obtain one hundred percent refinancing on their mortgage,
though they will likely have a higher rate.
Here are a few tips that you can follow in getting excellent
terms with your mortgage refinance venture. First, you should
save up about three percent of the loan prior to applying. By
coming ready to pay at least three percent you will help in
amount of interest that you will have to pay in the new
mortgage. Another thing you should definitely do, is do
and full research on each offer before you choose the final
You will help to ensure that you are obtaining the best deal
possible. You need to take many things into account in your
decision, such as interest rates and closing costs.
About The Author: Tim Renolds is the creator of the
www.loan-source.co.uk website. This website provides
U.K. homeowners with free no obligation secured loan quotes.