Conventional wisdom today is all over the map when it comes to finding a lender to finance your home purchase. Some experts say it is difficult to get financed if you have a bad credit history because banks are not lending money today. But some customers with bad credit are successfully getting financed today. It requires working with a creative lender, who understands today’s market, and can effectively navigate the convoluted lending system to secure credit for those individuals with bad credit.

Understanding Today’s Market

The experts on the Home Lender Depot team have kept up with the changing lending practices of banks, credit unions, and other sources of financing. And our team understands that many potential homeowners have bruised credit scores as a result of the economic instability in our country over the last couple of years. Our proactive effort to adjust our processes to the new economic realities puts us in the unique position of being able to help people with bad credit successfully purchase a home.

Our loan experts work closely with our customers to assess their financial situation, and to find the right loan that gets them in a home. Lenders are still willing to provide sub-prime loans, and will assess the risk of that loan and establish an interest rate that properly reflects the risk. What this means to the subprime borrower is that they may have to pay a higher interest rate to reflect the higher risk that the lender is taking by lending to them. Most homebuyers recognize these market realities and are prepared to pay a premium to reestablish a good credit history and become a homeowner. The economic realities of the last several years have caused many people to have to reset their financial profile and although bruised, work to reestablish a good credit history and secure the status of homeowner again.

Negotiating the Deal

Some first-time buyers do not have a credit history, or have a bad credit history as a result of poor financial decisions made when they were younger. We specialize in helping these bad loan buyers secure a loan and set them on the path to building a responsible and respectable credit profile.

In today’s market, many houses are undervalued, so Home Lender Depot is able to negotiate a stronger position for our bad credit buyers with lenders, making the argument that the home is a strong collateral asset because the assumption is that housing prices are at record rock bottom prices in today’s market. The bank, in assessing risk, will look at not only your credit history, and current income and expenses, but also recognize the house serves as a strong piece of collateral that can tip the decision in your favor.

We encourage you to contact us. One approach is to get pre-approved through our lending service. The pre-approval process can put you in a stronger negotiating position with potential sellers, particularly if they have had other deals fall though when people have not been able to secure financing.

We will help broker the agreement between you and the lender. In most cases, we can process the paperwork within a week, and have you well on your way to securing that most traditional of American dreams, of home ownership.

Bad credit mortgage loans are still possible in today’s market. If you fall in to any of the following categories, we encourage you to contact Home Lender Depot.

• Excellent credit history, that has been bruised by economic realities of last few years
• Younger first time buyers, with a credit history that reflects bad credit choices made, chalked up to youthful indiscretions.
• Families who have a bad credit history, as a result of always playing catch up on bills and expenses.

We have successfully worked with many people with compromised credit and successfully helped them secure a loan.

So, you’re thinking about buying a home? As you’ve discussed options, you’ve probably heard lots of stories. And gotten lots of advice from friends, family and co-workers about how you should arrange financing. While other people’s war stories may have nuggets of good information in them, your financial decision should ultimately be based on today’s market conditions and your own personal situation.

Timely Advice?

If you’re listening to your parents (or even grandparents), they are probably of the mindset that a 30 year mortgage is your best option. And probably in their day, when they purchased their home, that was the right decision, for them, at the time. Younger friends and family may advise you that an adjustable rate mortgage is the best thing, because with historically low interest rates, you can save money in the early years of your loan. And then there is the group of people who have purchased homes in the last 5 years, who have their own horror stories about interest only loans, home prices imploding, and how their home purchase was the worst decision they ever made. And the difficult thing, is that all of these people are right, given their own personal situation, and when they made the decisions that they did.

Today’s Home Buying Market

But today, everyone is operating in a different market. Interest rates are low. Home prices are lower today than they have been in years. In many markets, people think they have hit bottom. These market conditions can make it a great time to buy a home. On the other hand, getting loan approval is not as easy as it was a few years ago. And many people have bruised credit ratings, based on high job losses and challenging economic conditions of the last few years.

In today’s market, the best approach is for you to work with a professional, someone who has kept up with the changing market conditions, and changing mortgage instruments, and who can properly advise you on the best mortgage option for your personal situation and current market.

Prequalifying Can Put You In the Driver’s Seat

Many people start their search for a home, find the perfect house or the perfect deal, and then start working on getting approved for a mortgage. A better approach is to get your mortgage approval in place before you start looking for a home. This has several advantages. You have a clear understanding of how much you can afford to spend. Home sellers perceive you as a serious buyer, which can improve your negotiating position. Additionally, it puts you in a position of being able to act quickly. When you find the right deal, or the right house, you can “seal the deal” ahead of any other potential buyers. This first step of pre-approval, can be one of the most important steps you take.

Home Lender Depot – The Right Information for Today’s Market

One other thing to consider is that the financing landscape has dramatically changed in the last several years. Your parents and grandparents probably secured loans through their bank or savings and loan in their neighborhood.

The Internet has opened a whole new range of options to home buyers when it comes to securing a loan. Information, advice, and loan approval is literally at your fingertips. We would encourage you to visit our website, HomeLenderDepot.com, and work with us in getting the best information and securing the best mortgage that meets your individual needs. All of this can be done from the comfort of your home. Our loan process is quick and easy, and our loan experts are standing by, waiting to help you.

With hundreds of types of mortgages, and thousands of lenders, how does the average consumer make sense of all of the choice and numbers? Much of it comes down to working with the right mortgage expert and asking the right questions. These two tactics can put you on the road to getting the most affordable mortgage aligned with your specific needs and financial profile.

In the mortgage loan business, there is no “one size fits all” when it comes to securing a loan. Each prospective home owner has their own unique financial profile that will impact what loan is right for them. There are fixed rate mortgages, 15 and 30 year mortgages; adjustable rate mortgages (ARMs), interest only loans, pay option ARM loans, loans with balloon payments, FHA loans, extendable balloons, Jumbo Loans, VA loans and many other options. How does the typical consumer make sense of all the choices?

Factors to consider when sizing up your current situation include:

• Considering current income.
• Estimating future income for the next year, three years from now and five years from now.
• Is your income fixed or variable from month to month or seasonal?
• Calculating realistic monthly expenses. Do you expect these to increase or decrease in the coming years? Are the expenses set or do you have some control in managing the expenses?
• Do you have outstanding debt in the form or credit cards, or car payments, or student loans? How long before this debt can realistically be paid in full?
• How long do you expect to stay in your home? Will it meet your family’s needs for the next 5 to 10 years? Do you expect the size of your family to increase or decrease in the coming years?
• Do you expect to stay in the local area for the foreseeable future? Is you job location stable, so you can assess commuting requirements?
• Property taxes and insurance have become more unpredictable in some markets. Do you expect these expenses to remain consistent over time? Are you concerned that local factors may cause these costs to increase?

A fixed rate loan provides the most stable, predictable payment structure for homeowners. 15 and 30 year fixed rate loans offer a consistency and predictability that many people prefer. For other people, who are comfortable with more uncertainty, and can benefit from lower initial monthly payments, an ARM can be an attractive option for them. ARMs provide lower initial payments, which are attractive to many people, but can be more expensive when interest rates are reset, typically after 2, 3 or 5 years. Interest only loans can be a helpful financial instrument, and is particularly attractive to real-estate investors. These loans should be secured only by people who fully understand the terms of the loan, and are prepared to meet the requirements of this type of loan.

Pay Option ARM loans are an important tool when a large percentage of income comes from commission payment. These loans are also appealing to self-employed people. Again, because of the sophisticated structure of these loans, and the possibility of negative amortization, these types of loans should be fully understood before electing this type of loan. FHA loans can help first time buyers or buyers who have trouble securing more conventional loans.

Your best bet is working with a mortgage professional who can guide your decision making process and help you in assessing your current situation and selecting the mortgage best suited for your individual situation.

Click here for a free no obligation quote or call 800.470.0099 to speak with a loan expert now.

As a homeowner, if you have equity in your home, you are well positioned to get a loan, secured by your position of home ownership. Your equity position is based on how much you owe on your current mortgage, subtracted from how much your home is worth. The balance is the equity you have built up in your home (EQUITY = HOME VALUE – HOME MORTGAGE ).

A lender will be much more willing to provide a secured loan, in this case, the loan is secured by the equity you have accrued in your home vs. an unsecured loan. This puts homeowners in a much better position when it comes to borrowing money. Many homeowners elect to leverage the equity in their home, freeing up cash that gives them the flexibility to meet other financial obligations, such as college expenses, major home improvements, a new car loan, starting a new business, or consolidating high interest loans, such as credit card payments.

Even if you do not have equity built up in your home, some lenders value the stability reflected by owning a home, and will lend based on a 120% valuation of your home. In other words, if your home is worth $100,000 and you have no equity built up, a lender may calculate loan eligibility based on $100,000 x 120% = $120,000, and allow you to borrow up to $20,000. Secured loans, based on home equity, or home ownership, tends to have a lower interest rate than unsecured loans.

1. Consider Terms of Loan

There is a wide range in the repayment terms when securing a second loan, or home equity loan on your house. Length of the loan can vary from 3 to 25 years, depending on the size of the loan, and monthly payments that you can afford. Interest rates will vary, based on your credit history, equity in your home, and your monthly expenses and income. The lender will make a judgment on your ability to repay the loan, and the risk they are taking by lending to you and will set an interest rate based on these many factors.

2. Run the Numbers

Financial calculations can be confusing and convoluted. Make sure you have a clear understanding of the numbers when comparing one loan to another. At first glance, a low monthly payment can be enticing, but make sure you understand all the terms of the loan. Compared to monthly payment amounts, the annual percentage rate (APR) is a better indicator of your total financial obligation when securing a loan. Other things to look for include: hidden fees, miscellaneous charges, and penalties for late payments. Early repayment penalties can also make a difference, depending on your individual situation.

3. Compare Online

Be sure to take advantage of the convenience of online shopping. It has never been easier to shop for a loan. Home Lender Depot offers the convenience of online shopping, a one stop shop that can provide a broad range of loan options. Use our handy online calculator tools, research online and apply online. Everything is available at your fingertips.

At the end of the day, your home can be your best option for bridging short term financial obligations when cash flow is a problem. And, as with all major financial decisions, make sure you clearly understand the financial commitment you are making when securing a home equity loan and that you have considered both your immediate situation and your longer term ability to repay the loan.

Any major financial decision should be thoughtfully considered and analyzed. The last few years have felt like a financial roller coaster for many homeowners. None of the old rules seem to apply in today’s market.

For homeowners being squeezed by today’s economic uncertainties, second mortgages on their home have provided a much needed lifeline as they navigate the new realities. A second mortgage is a loan made to a homeowner, secured by the equity they have built up in their home. This loan provides up front cash, which is paid back in monthly installments, over an agreed upon period of time. So when does a second mortgage make sense for a homeowner and how are they most commonly used?

Common uses of second mortgages include:

• College expense payments
• Consolidating other outstanding higher interest rate debt.
• Converting high interest credit card repayments to more affordable interest rates, that are tax deductible.
• Major household repairs or renovations
• Kitchen and bathroom upgrades, bedroom or bathroom additions, backyard decks and pools.

Household renovations are many times seen as a good investment for second mortgages, as they will many times pay for themselves. Homeowners are re-investing in their biggest asset and increasing the overall value of the property.

Be prepared for the steps required to secure a second mortgage. Paperwork, home appraisals, income verification, and credit applications are all part of the process in securing a second mortgage. And because it is an important financial decision, we encourage all of our customers to carefully evaluate different loan offers to ensure you are securing a loan that best meets your individual requirements, and is structured in such a way to allow you to meet the terms of the new financial agreement. Pay close attention to the total loan amount, length of the loan, annual percentage rate (APR), and specific terms, such as late penalties or prepayment penalties. We try to make it as painless as possible for you, and in most cases, can have an approval to you in one week.

Top 5 questions to ask:

1. What is the APR? Is the loan an adjustable rate loan, or fixed rate?
2. If adjustable, what are the reset points for the loan?
3. Is there a cap on the amount that the interest rate can be increased? Lifetime cap?
4. What is the length of the loan?
5. When are you required to begin repayment of the loan? Monthly payments? Late fees?

Taking out a second mortgage is done by most homeowners as a method to achieve a specific short term goal. Whether you are striving to consolidate high interest loans, pay a short term obligation, or upgrade a certain portion of your life, a second mortgage can be an affordable and cost effective way to achieve these shorter term goals. Make sure you do your homework, and get the right loan for you, at the right terms. Make sure you understand any up front costs, or built in fees that increase your financial obligation. Timely and consistent repayment of a second mortgage allows you to demonstrate financial responsibility and build a solid credit history.

Second mortgages can be a smart, cost effective way to bridge short term cash flow issues, while rebuilding credit, and weathering downturns in your personal life.

Our economic reality looks very different today, and has endured the ups and downs of a turbulent and uncertain time in recent years. For those who have withstood the craziness of the last few years, and are ready to take the plunge into home ownership, there’s never been a better time.

Interest on borrowed money is at historical lows. Housing prices are lower than they’ve been in years. And people who have been patiently waiting on the sidelines are now ready to take the plunge into home ownership.

Most lending institutions have tightened credit regulations, shutting out some potential borrowers. But if you have been able to maintain a good credit record in the last few years, this is a great time to consider buying a home.

Having weathered the economic tsunami of the recent past, lenders are resetting lending guidelines and reassessing risk assessments. Most people feel like the worst is behind us, and lenders recognize the need to make loans, both for their short term performance metrics and longer term survival. So, for people with decent credit scores, this is a great time to secure financing from a lender.

Interest rates, while at historical lows, are expected to rise in the coming years. And this is an important indicator of what your total financial obligation and monthly payment will be. Lower interest rates translate to lower payments, and represent a huge total savings over the life of the loan. If you qualify, now is the time to secure a low interest loan.

Three important steps to consider when securing a loan:

1. Check your credit rating and reported credit history. There are three credit reporting agencies in the U.S. – Equifax, TransUnion and Experian. You are entitled to receive a free credit report from one of these agencies once every 12 months. A review of your credit report gives you the opportunity to ensure accuracy, correct inaccurate information and provide explanations for credit blemishes on your report. For a small fee, these agencies will also provide your credit score, which will be one of the primary factors that lenders will look at when assessing your credit-worthiness.
2. Apply for pre-approval. Home Lender Depot can help you get pre-approved for a loan. A pre-approval provides you with clear guidance on how much house you can afford, and provides peace of mind that any time invested when looking for a house will not be wasted.
3. Decide what type of loan is best suited for your individual situation. The most common loans today are fixed rate 15 and 30 year mortgages, and adjustable rate mortgages (ARM). Each has their own benefits and drawbacks. Considering the payment implication and total payments over time of the different types of loans, coupled with your own financial profile and need for certainty will help you decide on what loan makes the most sense for you. Again, Home Lender Depot can give you a broad range of options, and help guide you in making the best decision for your own personal situation.

It’s a great time to be buying a home. Let us help you find the right mortgage to take advantage of the positive trends in today’s home market – Call 800.470.0099 to speak with a loan expert today or simply apply online.

Important Questions to Consider

When evaluating which type of loan is the better choice for a homebuyer, people have strong opinions on both sides of the argument. Before deciding on which loan is best for your individual situation, it is important to take a look at the simple arithmetic and make the following assessments:

• What can you afford to pay now?
• How will your income change in the next year? The next three years?
• Do experts expect interest rates to increase or decrease or stay the same in the foreseeable future?
• How long do you expect to be in your home? If you will only be in your home for 3 to 5 years, the lower initial interest rate of an ARM can be very attractive.

Adjustable Rate Mortgages (ARM)

Some people view an ARM as a helping hand to realize their dream of owning a home. An ARM can be a great solution for someone with a short term cash flow problem for those just starting in their career or establishing credit. They are in a position where they fully expect their income to increase in the coming years, at which time they can withstand increases in their house payment, or will be able to refinance their ARM and secure a fixed rate mortgage.
The good news on adjustable rate mortgages is that the federal interest rate is at historical lows, making the initial interest rate on these mortgages extremely attractive and competitive. These low payments make home ownership more affordable for a larger number of people. Coupled with house prices at historically low rates, home ownership has not been more affordable in this country for quite some time.

Certainty Offered by Fixed Rate Loans

Other people prefer less uncertainty in their lives and like the predictability of a fixed rate loan. Our website offers a mortgage calculator that allows you to easily run through the different calculations. These financial calculations can be helpful in guiding you through the decision making process and finding the solution best for your family.

Home Lender Depot Can Help

The mortgage professionals at Home Lender Depot can assist in guiding you through the decision making process, so you secure a loan that is right for you today, and well positioned to fit your financial goals for the foreseeable future. Call 800-470-0099 or apply online to get started right away.

Step 1: What’s Your Credit Score?

All lenders will assess your ability to repay any loan you receive. The most important personal information they will look at is your income, your current monthly expenses, and your history of timely repayment of loans. The most common way your credit history is assessed by lenders is pulling a paid credit report from one of three credit bureaus – TransUnion, Experian, and Equifax.

These three credit bureaus compile your credit history and calculate your credit score, based on your credit history. Credit scores range from 300 to 850, with the higher number representing a stronger credit history. Lower scores represent poorer credit histories, typically due to late and unpaid bills.
All lenders will review your credit score and credit history in assessing the risk in loaning money to you. A poor credit history or lower credit score doesn’t always mean you won’t be able to get credit, but will typically mean that you will pay a higher interest rate, which reflects the lender’s assessment that you represent a higher risk of default than someone with a better credit history or lower credit score.

A great free resource for consumers is a website sponsored by the three credit bureaus – www.annualcreditreport.com. Once a year, you are entitled to get a report from this site that shows how your credit history has been recorded. While this report does not tell you your actual credit score, it does give you the opportunity to review the accuracy of your credit history on record, and to clear up any inaccuracies prior to applying for a loan. www.annualcreditreport.com provides a secure website to request a credit report, and provides your report via email, telephone and by mail. Once a year, you can also request a report from any of the three credit bureaus:
TransUnion.com
Experian.com
Equifax.com

Step 2: What Refinance Loan Meets Your Specific Needs?

Consumers choose to refinance their current mortgage for a variety of reasons. Common goals typically center on wanting to lower their monthly payments, pay less interest over the life of the loan, or “cash out” a portion of their home equity to pay short term expenses.

Because people refinance for different reasons, it’s important to assess which type of loan best meets your individual needs. Some things to consider:

1. What’s your refinancing goal?

When people are not looking to walk away with cash in hand, typically the refinanced loan will be for the current remaining balance on the existing loan. If your original mortgage was for $250,000, and your current balance is $200,000, in this case, you would be looking to refinance the $200,000 balance to achieve a specific goal, such as:

Lower interest rate
If interest rates for mortgages have decreased since you originally took out a loan, refinancing to secure a lower interest rate may make good financial sense for you. A lower interest rate will also translate to lower monthly payments.

Predictable monthly payments
If you elected an adjustable rate mortgage (A.R.M.) when you initially bought your home, and are now concerned about escalating rates at every reset period, you may be interested in transitioning to a fixed rate loan to ensure more stability for your monthly payments. This is a good solution if you are now in a position to afford higher monthly payments with the benefit of more predictability and stability in future mortgage payments.

Align loan terms to your current situation
If you have cleaned up your credit since first securing your mortgage loan, you may be in a position to qualify for a lower interest rate, based on your improved credit record. As mentioned earlier, all things being equal, a person with a better credit score and credit history will get a better interest rate than another consumer with a lower credit score and history.

Pay off loan more quickly
A job promotion, unexpected cash windfall, or other change in household income may motivate you to accelerate your loan payoff. Changing from a 30 year mortgage to a 15 year mortgage can dramatically accelerate your mortgage payoff schedule, allowing you to pay your mortgage in full much more quickly.
Whether this option makes sense depend on the terms of your current mortgage loan and your own self discipline. If your current loan allows prepayment of principal, and you are disciplined about making accelerated payments, paying off your current loan at a faster rate may be a better solution than refinancing
What makes sense for your family depends on terms of your current mortgage, current interest rates compared to your current mortgage, and your own personal self discipline.

Lower monthly payments
On the other hand, if your monthly household income has decreased recently, and you are struggling to make monthly mortgage payments, a change from a 15 year to 30 year mortgage may make sense if you can decrease your monthly payments to a more manageable amount. In this case, an assessment of the interest rate of your current mortgage compared to a refinancing mortgage interest rate will be important.

2. “Cash Out” Refinancing

Another category of consumer refinancing goals are those people who are looking to refinance and walk away with cash in hand. In this case, the refinanced loan will be larger than the current remaining balance on the existing loan. If your original loan was for $250,000, and your current balance is $200,000, in this case, you would be looking to refinance more than the $200,000 so you can pay off the first loan and walk away from the closing table with cash in hand for other purposes. You are encouraged to use this option responsibly. Common reasons consumers choose this option include:

Paying for a Major Expense
College expenses, remodeling, and major home repairs are common reasons people consider this type of loan.

Consolidate Monthly Bills
Some homeowners feel overwhelmed with credit card debt and high interest loans. Consolidated monthly bills into a single refinancing loan offers the benefits of lower interest rates, a single monthly bill, and tax deductible interest. You maximize your benefit from this consolidation when you also are disciplined about not continuing to accrue new debt from continued credit card use.

Is Refinancing the Answer?

Above, we discussed many reasons why people consider refinancing their current mortgage loan. The final assessment for any homeowner should be a balance of current short term financial needs, longer term financial goals, and an accurate assessment of personal discipline in responsibly managing large financial decisions.

Step 3: Do the Numbers Add Up?

If you have decided it makes sense to move forward with refinancing, and have a good idea of how you want to move forward, another calculation to consider is the financial break-even point for your refinancing.

Break Even Point

Securing a new mortgage requires upfront payment of loan fees and closing costs. While these costs can be rolled into monthly payments, they still should be assessed in terms of how long it will take for you to “recoup” these charges and start truly benefiting from a refinanced mortgage. It will typically take about 2 years to hit the breakeven point, where you have accounted for the upfront payments and start truly benefiting from the reduced interest on your current loan.

Example: If your current monthly mortgage payment is $2000 per month, and with refinancing, you are able to reduce your payment to $1700 (a savings of $300 per month), and you have $4000 in upfront loan fees and closing costs, it will take you 14 months ($300 x 14 = $4200) to recoup the upfront fees.

This calculation is somewhat simplistic. Your own situation will need to be assessed considering your individual tax situation, and whether or not you pay the upfront fees outright, or roll them into your monthly payments. Another consideration is whether or not you can cancel private mortgage insurance (PMI) when refinancing.

Comparing Lenders
Most consumers select a lender based on what lender offers the lowest interest rate. And this makes sense, because even a small difference in interest rates can make a huge difference in total payments over the life of the loan. The common expression of final interest rate is the annual percentage rate (A.P.R) which is the industry accepted standard for reporting an interest rate that can be compared from one vendor to another. Another reporting benchmark is a Good Faith Estimate from the lender. This estimate should provide a realistic assessment of all fees that will be incurred to secure the loan. You will also want to know if there are pre-payment penalties over the life of the loan.

Read the paperwork provided to you and ask questions! While the paperwork can be overwhelming, a refinanced mortgage is an important financial decision with long term implications.

Step 4: Securing the Loan

Because there are not the buyer/seller complications that go along with closing on a home, the refinancing process is typically much easier than when you initially bought your home. You will pay for an appraisal, and loan fees and closing costs, but the overall process is fairly straight forward. Make sure you have the opportunity to review the final paperwork before final signature.

Personal situations have changed as people have had income gains and losses, disruptions in employment, stock portfolios, retirement savings, and changing expectations. Personal circumstances have also evolved as divorce, marriage, college plans, empty nesters and retirement requires an evaluation of circumstances.

Making decisions on refinancing centers on a few core choices:

1. Refinancing your current 30 year mortgage and changing to a 15 year mortgage can yield the following benefits:

• Allow you to be debt free earlier.
• Lower interest payments over the life of the loan because principal is paid back more quickly.
• Lower interest rates – 15 year loans tend to be about ½ of 1 percentage point lower than 30 year loans

2. Refinancing your current 15 year mortgage extending repayment to 30 years can allow breathing room in the following ways:

• Introduces the “cash out” option, freeing up cash to pay for current monthly expenses
• Can help bridge the unemployment, underemployment gap that is a reality for many people in today’s tight job market.
• Allow for major household repair or renovation, again leveraging the “cash out” option.
• Consolidate monthly loan obligations into a single, lower interest, tax deductible loan/li>

3. Converting an adjustable rate mortgage (A.R.M.) to a fixed rate loan can provide peace of mind by:

• Ensuring more certainty for steady monthly payments
• Preventing resets to higher interest rates
• Possibly lowering monthly payment amounts

Questions to Ask

• How you answer these questions will help you determine the best solution for your current situation:
• What is the interest rate on your current loan?
• If you have an adjustable rate mortgage (A.R.M.) , when is the rate on your loan resetting? What will the new rate be?
• Will there be a prepayment penalty if you pay your loan off early?
• Can you get a better interest rate in today’s market?
• Has your credit history improved since you took out your last loan? Are you a better credit risk for lenders? If yes, you may be eligible for a lower interest rate.
• How much are upfront fees and closing costs? How long will you have to pay on the new loan to overcome these one time costs?
• How long will you stay in your current home? If you will not be in your current home for the next 3 to 5 years, it may be difficult to justify refinancing your current mortgage.
• What changes in your personal situation may positively or negatively impact your ability to refinance?

Most lenders can help you assess your current situation and make a decision that is right for your family. You are always advised to assess the information offered by lenders, and use your good judgment in deciding what is best for you, your family, and your current situation.

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For starters, take your lunch to work and make lunch for your family. Instead of going out to dinner every night or driving through the fast food joins, cook at home. Each of those things can be enjoyable and allow for quality time with your loved ones or an opportunity to do something fun for yourself (i.e. Julie & Julia). Just eliminating daily lunch costs and evening meals out, can save you over $300 a month. Have a garage sale. Go through your entire home and eliminate anything that has not been used in the past 6 months (unless holiday related), your whole family can get in on the act.

If you have a habit, like smoking or Starbucks, quit. Smoking alone it can cost as much as $5 a day, that’s $1,800 a year! As for Starbucks addicts, you can now purchase their coffee in the grocery store and brew your own or invest in a great coffee maker. Don’t be afraid to use coupons and take advantage of purchasing items in bulk (Sams Club and Cosco usually are the best places to shop). Make lists whether you are going shopping for clothing, school supplies, or groceries prior to going into the store and that will keep you from buying things you don’t need or can’t afford Tip . If you enjoy reading or books on tape, join your local library and get those items for free. As for renting movies, forgo the big chains and use the new Mini 1 day 99cent booths popping up everywhere. Take a look at your monthly bills and breakdown what areas you can cut back (usually food , entertaining, heating and cooling are the biggest money saving options).

Finally, and most importantly, cut up your credit cards, but save one for emergencies. It may seem like a great idea to charge now, but it will come back to bite you much like the housing bubble.

By just following some of the tips, or coming up with some of your own the average consumer can save over $12,000 a year. If you take that money and place it in a savings account that will give you some very nice cushion to fall back on. Please share some of your favorite “money savings tips”.