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Refinance from an Adjustable Rate Mortgage (ARM) to a fixed-rate It's important to consider what mortgage rates are doing. Since mid-2004, the Federal Reserve has raised interest rates several times and is expected to keep raising rates in the near future. This means that if you have an adjustable rate mortgage (ARM), it may adjust to a rate that's higher than a fixed-rate mortgage . Now might be a good time to consider refinancing to a fixed-rate loan. However, you must also consider the amount of time you plan on being in your home. If you're only going to be in your home for a few more years, it may make sense not to refinance out of your ARM. If you're going to be in your home longer than seven years, it might be a smart move to refinance to a fixed-rate mortgage. Getting pre-qualified or pre-approved. A pre-approval goes one step further than a pre-qualification. When getting pre-approved, you may receive a letter stating how much you qualify to borrow. Your lender will pull your credit report and find out what liabilities you have. However, not everything (namely your income and assets) is verified. What is an interest-only loan? An interest-only loan gives you the option of paying just the interest , or paying interest and as much principal as you want in any given month. The interest-only option is available in the initial years of the loan for a fixed number of years. After the interest-only period, all payments will then include principal and interest. Interest-only loans can be either traditional fixed-rate or adjustable-rate mortgages. How do interest-only loans work? If you choose to make the interest-only payment one month, that month's payment is lower than it would be had you made the principal and interest payment. Your interest rate may or may not be lower than a traditional mortgage, but you will have the option of choosing your payment. Sophisticated homeowners know that having this type of payment flexibility is one of the smartest ways to manage your personal finances. Refinancing from a traditional home loan to an interest-only loan has become popular because it gives you control over your cash flow. This example illustrates the payment flexibility of refinancing a $150,000 mortgage to an interest-only loan. Credit history When you apply for a mortgage, we must access your credit report to know how credit worthy (or risky) you are as a borrower. The higher your credit score, the more likely that you will qualify for a larger loan, better loan options, and/or a more favorable interest rate . In order to access your credit report, we'll need to know your Social Security number and date of birth. Signed purchase agreement The purchase agreement is the contract between home buyer and home seller that defines the terms and conditions of the sale. It's possible to get approved based on your income and asset information, but having a signed purchase agreement makes the process faster and easier. What is real estate investing? Real estate is a tangible, cash-generating asset, much like gold or silver, and appreciates in values just like these precious metals. Being a tangible asset, however, it does not function like a bond or stock that can quickly lose value; it remains an excellent, long-term way to invest. Real estate investors benefit from financial leverage, using a mortgage to build wealth in a way that other forms of investments do not. Real estate investment has proven to be a powerful method of creating wealth over time and there are three main forms of return-on-investment (ROI): cash flow, return on taxes and appreciation Cash flow Cash flow represents the most direct type of return, since it is money you can "put in your pocket" right away. Investing in real estate is a way to increase your cash flow. That, in turn, can provide the working capital you need to further expand your investment opportunities and obtain greater financial security. Home improvements that pay off You can get the most return-on-investment by remodeling your kitchen or bathroom. But avoid home improvements that make your home more difficult to sell such as adding a pool or making improvements that are too expensive or fancy. Visa debit cards are accepted everywhere. Use your Visa Card at retail locations. The Discover credit cards from Discover Card are just some of the best known credit cards that you can select from. They normally have a superb introductory period offer for all applicants with a low rate 0% APR. A MasterCard gets you benefits such as discounts on your purchases, air miles and cash back rewards whenever you use your card to purchase something. A MasterCard application can be filled by anyone, be it a student or businessman, everyone can benefit from a MasterCard.
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