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Getting a Good Refinance Deal.

  1. Points And Fees. Points are the lender's commission, calculated as a percentage of the loan amount. 1% is 1 point. Research current industry fees and points. Fees like loan origination or underwriting fees, settlement, and closing costs. Remember most of these are negotiable. There are also the 'no cost' deals, but they naturally charge a higher rate of interest.


  2. Do not get a refinance from your current lender if they cannot offer a better deal than other providers.


  3. Never drop a low interest rate for a higher one. Look at the Annualised Percentage Rate (APR) of any finance. This should be lower than the rates stipulated in the previous deal. Consider also the insurance costs, closing costs, and other fees charged upfront. A lower monthly payment alone should not be sufficient enticement to get new finance.


  4. Avoid offers of very low interest rates which will balloon later. Steer clear of variable rates that may sound attractive during the early part of the term.


  5. Don't fall for tax advantages offered for debt consolidation purposes. Review your personal tax position and analyse how this will be affected. Unless you diligently itemise your deductions, the tax write-off for your refinance interest is useless.


  6. It's important that you give yourself solid answers to these questions: What is your current financial situation? How you expect your finances to change in coming years? Which car do you want, for example?




  7. The payment installment should not exceed more than 20% of income remaining after meeting all the necessary expenses of the month.


  8. Adverts are not realistic. Read the fine print.


  9. Don't rush. You might miss benefits and discount schemes.


  10. The rule is: never borrow more than you need. As a borrower, you are not required to take the full amount of the loan you've been offered.


  11. Don't forget about earning money as an alternative to borrowing. Even ;though working at an (extra) job can seem like a burden, so is struggling with high repayments.


  12. The key to a successful application is to follow the instructions carefully. Note that any mistakes you make will delay receipt of your funds.


  13. There are free online calculators out there than can work out the amortisation of your debt.


  14. Having trouble repaying? Tell your lender. It's possible to come to an arrangement with reduced interest terms for a short period. If they don't know you are having difficulty they can't help.


  15. Avoid dubious lenders. You will know them by the suspiciously low rates they offer.




  16. To make refinancing more worthwhile, make sure that the interest rate is significantly lowered, say at least 2 or 3% lower than your original deal. Consider the points. Lenders usually charge more points with lower interest deals, so make sure you weigh appropriately.


  17. Compare the total costs you need to pay off with your existing debts, with the sum total you will be required to pay when you refinance. You can use a refinance calculator available online to help you. Make sure you consider fees and charges you incur when you take on a new deal.


  18. Shop for a good lender. Be wary of fraudulent ones, as they have become numerous in recent years. Research the lender's services, ask for recommendations and talk to some of their old clients. Also, ask them for a list of charges that they will impose on you at closing. Refinancing may offer the best to get your finances straight, but only if you do it right.


  19. Look for providers who are willing to offer you a free 60-day lock-in; bureaucratic delays may make you glad of the extra time. Be cautious and ask all the right questions. You may be promised a free lock-in, but your finance officer might charge you a fee or a very high price for it.


  20. USA: Use your rescission rights. If you don't like the way your deal has turned out before closing, you may still re-negotiate or go back to square one IF that's the law in your state! Don't force it if it's gone sour. Keep in mind that you're often given three working days from the date of closing to think things through. In case you decide you don't want the deal, inform the finance officer in writing before the three days are up. In turn, the lending firm has twenty days to refund your fees.


  21. There is no universal three-day cooling-off period. Don't be fooled into believing that you automatically have three days to cancel a purchase. Only a few types of contracts give you a right to cancel. Most governments go by the "caveat emptor" rule. They don't have enough people to police all transactions. The purchaser must take some responsibility for the purchase.


  22. Be wary of 'free' application costs. In terms of finance, 'free' can come with a cost. Instead of focusing on looking for applications offered at zero cost, focus on the interest rates and points. You may be in a shock when big fees slap you right before closing.


  23. Hidden Costs. Getting information about the monthly payment rate alone is not enough. Find out about the total refinance amount, terms and conditions, and type of refinance that is being offered. This information will help you more accurately compare between the deals offered from different providers.


  24. Consider what type of interest rate is being offered, whether it is fixed or adjustable. Also consider the refinance's annualised percentage rate (APR). The APR reflects all the costs of the deal, including interest rate, points, lender fees, and other credit charges.


  25. Avoid Fee-based Credit Repair Services: They are disreputable. You will likely only hear hear from them only once per month - when their service fee is due.


  26. Ensure that there is no prepayment penalty associated with your deal. If there is such a clause, contact your lender to discuss your options.


  27. Your finance is a package comprised of interest rates, fees, points, prepayment penalty clauses and balloon payment clauses. Make sure you understand the language used.


  28. Know and understand your fees. Your refinance fees may include an application fee, points, appraisal fees, etc. If you are dealing with a reputable lender most of these fees will be minimal.


  29. Take the quote that has the best rate and the one that has the best fees and combine them. Tell each lender to match or beat the quote on either the fees or the rate or you will go with the other fella. By doing this one of the two will bend and give you the best refinance rate possible.


  30. You need to get at least 3 quotes and one of them should be a refinance specialist. Then, you need to make the lenders compete for your business. Every time one of your lenders gives you a better quote get it in writing and use it to beat the other one(s) down.


  31. Do your research: As in all other sectors, there is intense competition in lending. You might try for refinance from your current lender, but they might not necessarily offer you the best deal.


  32. Up to approximately 30 to 35% of your credit score is determined by your payment history. If you miss just one month's payment, it can drop you 100 points. That 100 points could be the reason why you get that better interest rate on your refinance.


  33. Your credit rating and score is made up of your demonstrated ability to pay all your bills on time. Get a copy of your credit report. Mistakes on credit reports are common. If there are any mistakes, they can be fixed. You'll need documentation. If it's clear and you make it easy for the credit referencing agency, they will remove mistakes. This will cause your score to go up.


  34. Avoid bankruptcy and foreclosures. A bankruptcy will lower your score from 150 to 200 points. Bankruptcy and forclosure statements on your credit report stay there for for up to 10 years.


  35. Close old accounts. The number of tradelines (accounts) that you have open is a determining factor in your credit score. Keep your oldest credit or charge card, for the credit history attached to it.


  36. Your credit card lender sends out a report once a month to the credit bureaux on your outstanding balance. By having a low balance, or none at all, you are showing yourself as financially responsible. This will improve your score.


  37. Get a Credit Report. Find out just how bad your credit is before you approach lenders. You should be able to get a quote for your refinance from the lender with your credit score information in your hands. That way they don't have to pull your credit report unless they have a deal that would fit your needs, and you're ready to proceed.


  38. Haggle with the lender. They're competing for your business. Get a detailed list of fees for refinance including the interest rate, points, closing costs and any refinancing fees. You may be able to get some fees lowered or waived, even if you have bad credit.


  39. Create a list of all your debts and the interest rates for each one. Use your home equity to get money back at closing. This extra money that you borrow may have a lower interest rate than some of your current debts. Use the extra money to pay off high-interest debt and help reduce their monthly payments.


  40. Is your goal to lower the monthly payment or to pay less interest? A lower interest rate can be translated into the same monthly payment, but with more of the payment being applied to the principal of the refinance. This, of course, helps you pay off the debt faster.


  41. Seek pre-approval from a variety of lenders. Don't supply them with enough information to get your credit score. They will give you a less definite offer, but you'll be able to read the fine print to make sure the deal suits you.


  42. Once you choose a lender, you need to nail down, in writing, the interest rate, closing costs, and pre-payment penalties. If the lender wobbles on these, consider walking away.


  43. When it comes to lowering your rates you will need to weigh the benefits of having a lower rate versus paying points/fees up front. You may end up paying a lot more depending on your choice and how long you plan on keeping your refinance.


  44. Don't fall for the 0% APR offer unless you know what you're doing. A lot of lenders will try to get you locked into a low interest rate that will balloon in a couple of years and leave you potless.


  45. If your new refinance rate seems too good to be true then it probably is. Check for hidden fees.


  46. USA: You have a legal right to a good faith estimate. Get a copy of this document and go over it carefully, it will reveal where there is a real problem.


  47. Weigh the costs of how long you will be staying in your house versus how much of a saving you will be getting in a refinance. Make sure you include closing costs in your decision.


  48. Be honest about your credit history when requesting quotes from lenders. Their refinance quotes are only as good as the information you provide them with. If you apply for credit with false information, you will be denied. Inaccurate information will also get you inaccurate quotes.


  49. The amount of time you have to repay your loan, the term, can directly affect your interest rates. The longer it takes you to pay off your loan the higher the interest. Likewise, a shorter repayment period can get you lower interest rates.


  50. Is your interest rate is a floating one (variable), that can change over time. Or is it locked in (fixed)? Both can be beneficial on different and harmful on different levels. Consider this when before you commit to any particular finance plan.


  51. By law, lenders have to tell you the rate, fees and closing costs of any product. Any time a lender fudges this, you should be cautious. Find out how much time you have to close before rates are subject to reevaluation. They may not tell you when locked-in rates run out. Then at closing the lender will quote a new rate a point or two higher.


  52. Whenever a lender asks you to give false information or sign blank forms, walk away. You risk legal and financial trouble. While you can still go to law, you'll have little leverage. Blank forms provide fraudsters a license to write up any kind of refinance deal they want. You may end up with higher rates, balloon payments, or signing away your property title.


  53. While all lenders will encourage you to borrow more, to make more money from you, the good ones aren't trying to force you into bankruptcy. Scammers, however, want to take your home on foot of a secured loan. Exercise due diligence. Good rates and good terms from good lenders are out there for those willing to do a little homework.


  54. You'll have to pay fees, closing costs, possibly points and other extras whenever you refinance. This can add loads more to your outgoings. While you can sometimes add these to your refinance, you still have to fork out in the end. So check on the final total of all additional fees when comparing lenders.


  55. It's possible to "lock-in" your rate. This means your lender guarantees, in writing, that your interest rate will never rise above a certain amount within a set period of time, typically 30 or 60 days. Interest rates rise, which means each week could mean a higher rate, so it's smart to lock in.


  56. Make sure that the interest rate is significantly lowered, say at least 2 or 3% lower than your current refinance, to make refinance worthwhile, Consider the points as well. Lenders usually charge more points with lower rates, so make sure you weigh appropriately.


  57. Compare the total costs you need to pay off your existing refinance, with the total required when you refinance. You can use an online calculator to help you. Make sure you consider fees and charges.


  58. Shop around for a good lender. Be wary about fraudsters. Research them, ask for recommendations and, if you can, talk to some of their old clients. Also, ask them for a list of charges.


  59. Many lenders recommend that clients wait until the current market rate is at least two points below their current rate. Refinancing for a one point difference is not worthwhile because savings are too small, plus the closing costs and fees.


  60. Contact your current lender as well. They may waive fees. Or not. Online providers are worthwhile because you can get multiple offers from a single application. Multiple different offers afford the opportunity to compare rates and services.


  61. When you refinance your loan, you may have to pay closing costs. The amount will depend upon your lender.


  62. The interest rate should be lower. You should carefully consider the interest rate when looking at refinance. If your new interest rate is no lower than your current rate, it may not be a good idea unless you really need the money.


  63. There are many lenders online that will offer you up to 4 offers from different lenders from one application. Most of these will not even pull your credit report with the initial application, they will just ask you to describe your credit. This way, your credit rating will not drop from being checked too often.


  64. Re-financing with shorter refinance terms is definitely not an easy option but clients who have a large monthly money flow or who receive a sizable promotion at work might be able to consider it. The result will be significantly higher monthly payment. This is a viable option if the client can afford the increase in monthly payments and has an overall goal of reducing the amount of interest they will pay over the course of the entire loan term. The client does not have the option of reducing their original debt but they can drastically reduce the amount of interest paid. Consider two loans with a 5% interest rate. One is to be repaid over a period of 15 years while the other refinance is to be repaid over a period of 30 years. The client with the 30 year refinance will pay more during the course of the refinance.


  65. Comparison shop at your convenience. Many clients work long hours and often find they are not able to meet with lenders during regular business hours. The Internet, however, is open 24 hours a day and allows clients to research their options, make important calculations or receive online quotes at any time of the day through the use of automated systems. Clients can also take their time comparing the quotes they receive from these lenders online instead of feeling pressured to provide an immediate response. Clients should realise they do need to act relatively quickly to lock-in estimates they receive as interest rates cannot be guaranteed for long periods of time.


  66. Cients who stick with well-known lenders and established websites will not likely encounter problems but those who select a less-famous lender may be unpleasantly surprised by the results of their re-financing attempt.


  67. USA: Clients who are unsure about the reliability of a particular lender can consult the Better Business Bureau (BBB). The BBB may be able to provide the client with valuable information regarding the number of previous complaints against the lender. A lender who has a large number of unresolved complaints should be considered an unreliable lender. However, clients should not assume lenders without a significant number of complaints are reputable unless the lender has been in existence for a number of years and is a member of the BBB.


  68. Clients should also take care not to be fooled by fancy web design. A website which looks very professional is not necessarily a website which is accurate and informative. Many skilled website designers can create websites which are both attractive and professional looking. These designers can also optimise a website for particular refinance-related keywords so users find the page easily when searching for these terms but this does not necessarily make the website designer knowledgeable about the subject of financing.


  69. Clients should consider completing the application process either in person or over the phone instead of relying on an automated system. While the Internet is good for research purposes, clients can take advantage of face-to-face meetings or telephone conferences to ask all relevant questions. Asking all of these questions will help you to ensure one fully understands the finance terms as well as all of one's available options. Completing the re-financing process in person or over the phone can also prevent the client being surprised. Surprises may include additional fees which are tacked on during the processing of the application, rates which are only available in certain situations or other elements of the agreement which could significantly impact the client's decision making process.


  70. The first step in the process should be for you to determine your goals and why you are considering re-financing. The most important thing is achieving one's financial goals. Common reasons are: - Reducing monthly refinance payments - Consolidating existing debts - Reducing the amount of interest paid over the course of a loan - Repaying the loan quicker - Gaining equity quicker.


  71. Consider meeting with a finance expert to determine the best refinance strategy; which is financially sound but is also still geared to meeting the needs of the client. Even the most educated client may not be aware of the newest options being offered by lenders.


  72. The possibility of lower monthly payments is a very appealing. Many people live paycheck to paycheck and for these finding an opportunity to increase their savings can be a monumental feat. Folks who are able to negotiate lower interest rates when they re-finance their home will likely see the benefit of lower monthly refinance payments.


  73. In general the closing costs should not exceed overall financial savings. The amount of time the client is required to retain the property to recoup these costs should not be longer than the client plans to retain the property.


  74. When the client's credit scores improve, re-financing should be considered. Lenders are in the business of making money and are more likely to offer favorable rates to those with good credit. The good thing about credit scores is mistakes and blemishes are eventually erased from the record. As a result, clients who make an honest effort to repair their credit by making payments in a timely fashion may find themselves in a position of improved credit in the future.


  75. Consider re-financing when there is a significant change in your financial situation. This may include a large raise as well as the loss of a job or a change in careers resulting in a considerable loss of pay. In either case, re-financing may be a viable solution. Clients who are making considerably more money might consider re-financing to pay off their debts earlier. Conversely, those who find themselves unable to fulfill their monthly financial obligations might turn to re-financing as a way of extending the debt which will lower the monthly payments. This may result in the client paying more money in the long run because they are stretching their debt over a longer pay period but it might be necessary in times of need. In these cases a lower monthly payment may be worth paying more in the long run.


  76. Consulting with financial experts might be the most expensive option as many of these experts will likely charge a fee for their services but it can also be the most reliable source of information.


  77. The mathematics associated with determining whether or not there is an actual savings is not overly complicated but there is the possibility that the client will make mistakes in these types of calculations. Fortunately there are calculators available on the internet which can help clients to determine whether or not re-financing is worthwhile.


  78. Even the most professional-looking website may contain inaccurate information. This may not be intentional but it often occurs when the website owner is quite knowledgeable about website design but is less knowledgeable about finance.


  79. Rely solely on websites maintained by well known lenders or financial institution. Often the ownership of the website may be difficult to decipher but many well known financial institutions use their name as their domain name and optimise their website for keywords related to their name. This is done to ensure those who search for their name will be directed to their website.


  80. Look for a lender that may be willing to waive the normal fees. These include such things as an application fee, legal fees and appraisal fees. This are all normally associated with closing fees on a new refinance. This could save thousands of dollars. It would give you a higher monthly payment but this could be still acceptable with a small rate decrease.


  81. Try and get a guarantee on the rate so that it is locked in during closing. This will keep the rate the same even if it should go up prior to your closing. You could even try and see if they will agree to a rate decrease if that should occur before closing. Finance is competitive enough that if a lender will not do either of those options you may want to find another. The ultimate goal is to reduce your payments or to increase the equity of your home in a shorter time.


  82. Consulting with family and friends is one of the first steps one should take. Friends and family members who recently re-financed their own home likely did a great deal of research and legwork before making their decision. They also likely formed useful opinions, either negative or positive, about the lender they used in the process. It is this information which can be very useful.


  83. When selecting a lender the client should also consider how responsive the lender is to their questions. This is important because a lender who does not pay attention to the client or respond to their inquiries in a timely fashion can make the process of re-financing considerably more stressful than necessary. Selecting one who offers slightly higher rates but is more responsive may be warranted.


  84. Other factors come into play such as the remaining balance of the existing loan as well as the amount of time the client intends to stay in the home before selling the property.


  85. While the purpose of a money-out re-finance does not have to be disclosed to the lender, the client would be wise to use these funds in a judicious manner. This is because the client will be responsible for repaying these funds to the lender. Some of the popular uses for funds collected from money out re-financing include: - Undertaking home improvement projects - Purchasing items for the home - Taking a dream holiday - Putting money in a child's tuition fund - Purchasing a vehicle - Starting a small business


  86. Debt consolidation can be used to clear up any number of debts incurred by a borrower in different formats, be they credit card debts, personal loans, hire-purchase debts, etc; these can all be put together into a single loan normally with a reduced monthly payment. This reduce the problem of organising many different payments each month and may save you money as well as time if you get a good rate.


  87. Be wary of promises of getting a deal quickly. Many borrowers are told that their deal will close within a particular time. They don't make payments on existing debts, in anticipation of the new loan. After several delays, they become delinquent, with no money from the new refinance. Some lenders then order new credit reports, and charge the borrowers higher fees and a higher rate, because of the delinquent refinances, which resulted from delays caused by the refinance lender!


  88. NOTE: Your home is at risk if you do not keep up payments on a loan secured on it.


  89. Make sure you understand and are willing to pay all of the fees listed. Origination fees are usually about about 1% of the deal amount. Some consumers have paid (in ignorance) much more. If you have poor credit, you will likely have to pay higher rates and fees, but shop around.


  90. Beware of statements such as "No cost to you". Some lenders will add closing costs to your balance rather than require you to provide money upfront at closing. Make sure you understand all the fees you are paying.


  91. If you you can never speak to an individual, or you have to wait 'on hold' for a long time, this speaks badly for the level of service you are likely to get.


  92. Keep a copy of every cheque you write for your refinance.


  93. If you call your lender about your refinance, make sure you get the full name of the person with whom you speak.


  94. Does pulling your credit report many times damage your credit? Answer: All inquiries for your credit report within a 14-day period will count as one inquiry if you are looking for a loan to refinance your mortgage, a mortgage to purchase a home, a home equity loan, or a car loan. If you are looking for a personal loan or credit card, however, each inquiry will be counted separately.


  95. UK: In your research for a refinance it is advisable to review if the lender is a member of the Finance Industry Standards Association (FISA), which follow the confidentiality guidelines set out for this association, and also those refinance lenders registered under the Data Protection Act (DPA) who adhere to the letter of the law from the Data Protection Register.


  96. The total cost of your refinance will depend on the annual percentage rate (APR), and associated fees. The annual percentage amount takes into account the whole interest amount, and all those charges associated with the refinance including the arrangement fees.


  97. Interest on loans are charged in one of two ways, as either a fixed or variable rate. Fixed interest rate is guaranteed for the whole term of the refinance and it will not be subject to market fluctuations. The variable interest rate is usually lower than fixed interest rates in the beginning; however they do not offer the security of a fixed interest rate, incorporating a risk element in your finances.


  98. Whether you are buying a new home or changing lenders for re-mortgaging, you need to be sure you can afford the repayments. Lenders consider a number of things working out how much you can borrow, like your income and employment status, the property value, the outgoings and your credit history, although lenders use different rules, most of them share these guidelines.


  99. Top lenders are subsidiaries of the clearing banks and they may negotiate competitive rates to guarantee you a deal that suits your requirements and the repayments you can afford after you describe your present situation.


  100. When you are a homeowner, you always have a better chance of borrowing a secured loan for any given amount against your home, because your property acts as collateral.


  101. Be sure to ask your lender about early repayment, since many of them will charge a fee if you decide to pay off your refinance earlier than was first expected.


  102. Some lenders may offer flexible deals allowing the borrower to make under or over repayments. If flexibility is high on your list of priorities, see if you can find a lender which will offer you such terms.


  103. Think about budget safety when arranging your refinance. No matter how cheap your refinance may be, you are probably willing to pay it off as quickly as you can to avoid undue interest accruing. However, it is important not to overstretch yourself. Leave a portion of your regular monthly income aside as cover for emergencies and one-off bills.


  104. Before signing anything, find out exactly what would happen in a situation where you are able to pay off your debt earlier than expected. The terms may be different to what you were expecting.


  105. Understand every word of your agreement before you sign, including terms and conditions.


  106. UK: The Consumer Credit Act of 1974 guarantees that consumers have access to objective and revealing information about lenders. APR must legally be calculated in compliance with this regulation and must include not just the interest rate but also any additional fees.


  107. UK: If you are uncertain in any area of the policy or contract you are about to sign, ask your lender or contact the DTI's Consumer and Competition Policy Directorate. Enquiry Unit 'phone 020 7215-5000 or via email: dti. enquiries @ dti.gsi.gov.uk


  108. In case you are having problems with your finances, inform your lender as soon as possible. The earlier you tell them, the more sympathetic they will be, making the necessary arrangements for under-repayments until you regain financial stability.


  109. UK: Any concerns regarding the standing or history of a lender can be checked out on the Consumer Credit Register, where there is information available on every trader that has a license or has ever applied for one. To make an enquiry call the Office of Fair Trading, 'phone: 020 7211-8608.


  110. Sit down and do some budgeting. Get paper and pen ready, and start by making a complete list of your expenses. That way, you will have an exact idea of how much you can afford to pay towards paying off your debt.


  111. Get quotes from diverse sources, not just your local banks. Try credit unions and online lenders as well. Terms can be more convenient and with less restrictive conditions than those offered by banks. This is because banks earn money by a number of different means, as opposite to online lenders, whose primary income is a direct result of the amount of money they lend.


  112. If you live on a fixed income, it makes no sense to get a variable rate refinance. Instead, go for fixed rates. However, if your job allows you to increase your income within certain periods, you should look for refinance that lets you pay back early. That way, if you double your average income on a certain month, you may pay double that month, making the overall payback time smaller.


  113. Typical examples of additional costs are payment protection schemes, which vary from lender to lender.


  114. Watch the small print.


  115. Phrases that you may come across when dealing with lenders are:

    - APR, an acronym for "annualised percentage rate", the amount of interest charged on your refinance plus additional fees and charges.

    - Arrears, a term used to describe the amount that a borrower is behind in their agreed repayment plan, measured by either money or time.

    - Security, term used to describe assets or property put up as security for a refinance. The lender will be entitled to reclaim the assets as compensation if repayments are not kept up.

    - Fixed interest rate, the type of interest that remains the same throughout the term of the refinance.

    - Overpay, term that describes the making of payments over and above those outlined by the refinance repayment plan.

    - Secured, type of refinance that requires property or a security to be put up against the refinance.

    - Term, the length of time over which you agree to repay your refinance.


  116. Improve your credit-rating.

    Find out what it is at Equifax, Experian and Trans Union. Lenders may access them all. Then do the following:

    Make sure you are on the electoral register.

    Satisfy liens and public judgements, such as in the County Court (CCJs).

    Correct errors, including erasing judgements older than seven years. Paid-off debts can be legitimately recorded up to seven years after settlement.

    Add information showing stability:
    - Current employment, employer's name and address and your job title.
    - Previous employment, if you've had your current job less than two years.
    - Current residence, and if you own it.
    - Previous residence if you've been at your current place under two years.
    - Date of birth.

    Avoid unnecesssary enquiries or shopping around for credit or unless it's for a mortgage, equity or car loan. Multiple accesses by lenders of your credit report can indicate that you need many lines of credit. This looks like you are desperate for money, or trying to commit fraud.

    Close unneeded accounts. Close them off slowly, not all at once. Keep only two credit cards.

    Pay off credit cards. Keep balances low, and paid off on time.

    Keep your debt low; below 75% of available credit.

    Build a good payment history. Pay your bills on time!

    Open a savings account at your bank.


  117. Avoid debt-restructuring or consolidation lenders. These can get you into more trouble. Negotiate yourself with your creditors, and get any agreements in writing!


  118. The smaller you can make your loan, the better. Loans, like credit-cards, are an expensive way to get money. If you can beg or borrow from friends or relatives to bulk up your money-at-hand, do so. You'll feel a lot happier if you're only paying a few hundred, rather than a grand, a month.


  119. In order to give you their best refinance, the lender you apply to will need at least your:

    • Name;
    • Address (with post code);
    • Time at that address;
    • Amount you want to borrow;
    • Employment (how long in your current job);
    • If you have a bank account (and how long you've had it).

    You may have to get used to the idea of getting cold calls from other lender for weeks or months afterwards. Stop this by telling the initial lender "Please do not sell or pass my personal data on to other lenders. Thank you."



  120. Give the same name and address as you normally have on your bills. If you moved recently (in the past two years), give your old address as well. You're dealing with a bureaucracy, and big computerised databases. They can only find what you tell them; if you give incorrect information, you may not get the full picture.

    You can also apply to the (UK) County Court to satisfy outstanding judgements against you, and have this entered in their records; it'll still count as a mark against you, but it will be more of a dark grey instead.


  121. Don't take on a refinance thinking &Well, I can always go bankrupt if I get into difficulties&. This is folly. If you go bankrupt, it will be entered in the records of the County Court, and you will find it very difficult, if not impossible, to get credit of any kind in the future, except at usurious rates. Also, the lender you owe the money to will make an entry into your credit record. Credit referencing agencies make it their business to sift County Court records, to keep their databases up to date. You will have shown you can't be trusted to pay back a debt, therefore why should any lender, hire purchase company or credit card provider take a chance on you?


  122. You can improve your credit-worthiness by:

    • Staying in one place for two years or more;
    • Your house or flat not having had previous occupiers with bad credit;
    • Being on the electoral register;
    • Having a credit card or store card;
    • Paying off your credit-cards, store cards and video rentals regularly;
    • Getting black marks removed from your credit report. Go to Experian, CallCredit and Equifax;
    • Paying your bills before the due date;
    • Having the same bank account for two years or more;
    • Being in credit on your bank account (no overdraft, no unauthorised overdrafts);
    • Having £50,000 in the bank already!
    • Owning property.



  123. If you're looking for a loan, a secured one is much easier to get than an unsecured one. A secure one is secured against your house; valuable property. Unsecured means they take a look at your credit status, and give you an APR based on it. Secured loans are so desirable, and easier for a broker to 'place', versus unsecured ones, that many lenders say 'no tenants'.


  124. Widen your horizons. What do you want? Money. How does one get more money? By: Getting a second job or a paying hobby; by borrowing from friends and family, by downsizing one's expectations; by selling an unnecessary asset, like a sports car, by saving what you've already got.


  125. Any refinance site on the internet you find should be scrutinised according to the following checklist:

    • Has it got a registered lender name?;
    • Has it got a registered office?;
    • Has it got a street address, rather than a P.O. box?;
    • Has it got a telephone number?;
    • How long has the lender been in business?;
    • How quick are they to respond to queries?;
    • How far away are they from you physically?;
    • Are lender personnel mentioned by name on the site?


    Once you've settled on a few refinance lenders, you can enter their business name in a search engine with the words 'problem' or 'scam', and see what comes up.


  126. If you have several small debts with different lenders then you can combine them all into one monthly repayment. The easiest way is to take out a debt consolidation loan. By doing so you are literally combining all your debts together and so just making one monthly repayment to one lender. The downside is that this will show up on your credit report, and the consolidation lender may be incompetent.

    A better way is to take out a cheap loan to pay off more expensive ones, such as credit card debts.


  127. Credit cards and easy lending can be a curse. You can get into default if you don't keep track of your income and expenditure. You get a nice paying job and find that you are being offered credit cards by various lenders. If you're smart you'll find a low interest card from a solid lender, sign up, keep track of your purchases, pay off your credit card bills in full each month, and ignore offers; from other lenders, or your current one. Fools are captivated by all the 'free money' on offer and will end up with cards from several lenders. They end up making lots of purchases 'on tick' while making the minimum monthly repayments. Then they hit a bad patch financially and the monthly payment is no longer manageable.


  128. If you only pay the minimum money due every month you can't hope to get out of debt. The requirement of collateral can be done away with sometimes. Lenders rarely offer such deals. A good credit history is a pre-requisite but there are always a few lenders who will consider your particular situation. Lenders will accept some borrowers with a bad credit history; it depends on their own internal credit scoring system.


  129. If applying over the internet, you shouldn't have to pay processing fees, as there is little manual labour involved. You can save lot of time and money in the approval process.


  130. Study lenders. Only by requesting quotes and comparing the fine print can you be sure of getting the lowest rate. With some sites you can make side-by-side comparisons, while other sites will email you multiple financing offers. Brokers work hard to attract customers by negotiating lower rates with lenders, so you often will find better deals through their sites than through the high street, or newspaper or TV ads.


  131. Some crooked 'lenders' use the Internet to take advantage of consumers through their online applications. This can lead to identity theft or passing your details onto umpteen other lenders. Before you apply online, always make sure you are using a trusted, well-known lender. Most will only ask you for some preliminary information regarding your income, debt, etc. They do this for basic screening; they want to make sure you're reasonably qualified for a refinance before spending more time and money processing you.


  132. By providing only basic information initially, you can find out if the lender will touch you. You can avoid filling out a full refinance application for a lender who can't help you.


  133. The world of lending is a highly competitive one. If you have decent credit and are generally a good candidate for a refinance, online lenders will try to offer you the lowest rate and best terms possible, in order to get your business.


  134. It's important to get everything in writing. This is good financial practice in general, but it's especially important with large financial transactions. For example, if a lender promises you a certain interest rate based on your qualification and credit score, ask them for it in writing.


  135. Some debt consolidation companies are not legitimate and can take your monthly payments and keep them for a month or more before they pay your creditors. They collect interest on the money all the while, causing you to accrue late fees and possibly collections. They can actually cost you money and make your situation worse.


  136. Roughly 35% of your credit score is determined by your bill-paying history: late payments, bankruptcy, late collections etc, can all give you a low credit rating. It's generally checked over a two-year period and it's the more recent debts that carry the most weight.


  137. It's possible to improve and even recover a low credit score. By managing finances carefully, you can accumulate 'points', making finance more viable. Ensure repayments are met on time. Lenders view people who owe smaller amounts on many credit facilities as being a lower risk than those who owe large amounts on fewer.


  138. It's not unusual to find lenders that will encourage you to sign up for a deal by lowering your interest rate, which, unfortunately, can increase dramatically later on. This is called a 'honeymoon' interest rate. If you aren't prepared with the increase, you may find it very difficult to pay off your loan.


  139. Know how badly you need the money. This is still a debt that you need to pay for a set length of time. You have to evaluate how much you need the money right now. Perhaps you can look for a way to increase your income?


  140. Do the calculations yourself. Don't just leave it to the lender. You decide which plan(s) suit your needs.


  141. Go for lenders with good reputations and lots of good client reviews. The lender should be in business for years and be capable of easily handling your case.


  142. Use online comparison sites for your quote because they are going to search multiple lenders for you and find the best one for your situation.


  143. Once you have a quote and you are sure you can get approved, then you take your quote to another lender and your local bank. They may surprise you and will match or beat a quote in order to keep your business. Trying a second lender will guarantee you are getting the best refinance deal possible for your circumstances.


  144. You should get a fresh copy of your credit report to ensure that there are no errors even if you are certain you have good credit. If you do find a mistake be sure to contact the credit bureau(s) right away by post to request the entry be corrected. You should also contact the creditor that supplied the incorrect information to the credit reporting lenders as well.


  145. You are able to dispute errors on your credit report. However the items have to be factual errors. If there is a debt listed on your credit report, and it hasn't been paid off, you can't dispute it. Pay off your debts, starting with the one with the highest interest rate and moving downward.


  146. If the debts you hold are just to are overwhelming then get help from a credit counsellor (preferably a non-profit one) ASAP. They will help you work out a repayment plan or a debt consolidation agreement. It's not the most pleasant choice when trying to improve bad credit, because it prolongs your poor credit rating, but it's the safest way to do it.


  147. Any credit cards, charge cards, or 'purchase now pay later' cards that you don't need; get rid of them, but keep the oldest one, for the credit history attached to it. Don't be the fool who consolidates their debt only to rack it back up again while they're still paying off their refinance.


  148. Pay off outstanding debts as quickly as possible. Use spare cash to pay extra on debts and stay up to date with loan, rent and bill payments.


  149. Compare costs and other terms-and-conditions across various lenders. Some lenders may give you reduced interest rates for early clearance of the amount borrowed.


  150. Have the loan deposited in your account on the very last day before you need to use the money. It's unwise to borrow money and then let it accrue interest while in your bank account.


  151. Never borrow more than the minimum you need! Just a few hundred quid extra could cost you half as much again over the term of the loan!


  152. Make a list of your income. Then forecast your expected monthly or weekly expenses. Once you have a budget, be strict with yourself and stick to it. You will never know what unexpected expenses could arise so it's better to have a backup for financial emergencies.


  153. Use cash as much as you can. Avoid using your debit card when you have money with you. Use your credit cards or write cheques only in emergencies. Having debit cards, credit cards and cheques to hand might lead you to overspend.


  154. Keeping busy will let your mind wander and help you stay away from things that you are likely to spend money on when you get bored. Examples of these are snacks, film tickets or video rentals. You'll be surprised at the amount of money you'll save by spending less on luxury items, following your budget plan and saving for financial emergencies.


  155. Here are some bogus offers that are often aimed at the ignorant client: promises to fix your credit problems, low cost refinance, magazine subscriptions, low cost home repair, special car deals, low-interest credit cards, deals that let you miss credit card payments, job opportunities, risk-free investments and free travel.


  156. Say no to credit insurance offers. These are often attached to loans. It's just another way of squeezing more money out of you. They benefit the lender, not you.


  157. Think twice before sharing personal information. Don't give it out unless you know the client or lender is above board.


  158. Don't buy under stress. Don't be talked into quick fix deals. Try to avoid making big-ticket refinance deals during times of duress.


  159. Quit that smoking habit. If you smoke a packet of cigarettes a day, it's costing you a ton of money a year. Quit smoking, and put the daily savings aside and put it towards your debt. Look for other costly habits that you can quit and apply the savings to your refinance.
I hope these few simple ideas will assist you in getting a worthwhile loan or mortgage refinance deal done quickly.







 














Anyone who dies with more than $1. 15 to his name is a jerk.

(Errol Flynn).





Time now: 23:59:52 | Thursday | March 28 | 2024.
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