Castle Point Mortgage is committed to making the process of buying or refinancing your home as simple and as affordable as possible. Thank you Castle Point Mortgage for your help in lowering my interest rate, paying off my bills and giving me cash back with a lower monthly payment. I will recommend Castle Point Mortgage to all my friends and family.
Bill B PA

This was truly a pleasant and stress free experience, and I will recommend all my friends, family, and colleagues to you in the future. Because of the outstanding service you provided me, Castle Point Mortgage, Inc. will always be the first company I contact when I’m in need of financial services

Thanks again for all your hard work!

Leandra N
MD

Author: Jakob Jelling
Households across the country are finding themselves in a similar situation. They lack the financial funds to make the necessary changes to their home and need to find a way to fund upgrades and eliminate debt. A popular way of financing these changes without killing themselves is by taking a home equity loan to pay down their debt.

The Home Equity Loan has become a fast-track way of paying down large credit card debt, financing college education and even taking a vacation. Since the stock market has lost quite a bit of appreciation, people have been purchasing homes as a means of investment, thus sending housing prices through the roof. With higher prices comes a great deal of appreciation in the home. People who have found themselves in 20 – 30 thousand dollars in debt can pay it down by taking a home equity loan. Home Equity Loans have been a source of relief and flexibility to get the homeowner out of debt and moving forward in life.

The home equity tax shelter

The greatest benefit from taking a Home Equity Loan is being able to crush debt, but also reduce the amount you owe the government every year. Most loans by design do not provide any tax relief, whereas a Home Equity Loan provides a direct line item to reduce your debt. To figure out your home equity value you can hire a professional appraiser to come out and tell you how much it is worth to a bank or financial institution. Once you have that figure you can easily find out how much equity you have in your home. For example, should your home appraise for $150,000 and you owe $ 60,000 you have $90,000 in equity. This equity will not become a taxable event should you buy a bigger home and spend more money. Should you step down in your home, you can be penalized for the difference, provided that you have not already taken the one-time exemption allowed by the government.

Debt relief

Once you have found out how much your home is now worth, it is time to apply for the loan. During the loan process you can bring your credit card statements as well as any other debts you may owe to the table. Explain to the loan officer your situation and ask that these debts also be included in the Home Equity Loan. If your home has at least 40% equity in your property you should have no problem getting them dissolved into the loan. There are many reputable lenders who will help you find the right loan for you. The Home Equity Loan will restart the 15 or 30-year clock from day one. Your payment may increase or decrease depending on how much debt you add or cash you take out of the property.

Author: Tim Gorman
There are at least two types of home equity loans.

The first is a term or closed end loan and the second is basically a line of credit. Most people prefer to refer to them as a second mortgage because they are secured against your home much like your first home loan or mortgage. Typically these types of home equity loans usually have a payback life of between 5 and 15 years.

The term loan is a one-time lump sum payment that is paid off over a set amount of time. There is a fixed interest rate which allows for the same loan repayment each month. After you get your money you cannot borrow further from the loan.

A home equity loan line of credit works more like a credit card. You are allowed to borrow up to a certain amount for the life of the loan. The time limit is usually set by the lender of the loan. During that time you can withdraw money as you require it to purchase items or pay for things that interest you. As you pay off the principal your credit revolves and you can use it again. This credit line gives you more flexibility than a term home equity loan.

Which ever of the two types of home equity loans that you should use depends on your unique situation. You can base your decision on some common questions such as how much money will you need, how long will you need the money for, how long will you need to pay the loan off and how much of a monthly payment can you afford.

Author: Alan Lim
Home mortgage refinancing can be a sound financial move for any home buyer, most especially if the interest rates are ideal. You can save a lot on your monthly payment, and you can swiftly ease your way back to regain financial control.

Factors to Consider Before Refinancing

When you refinance, it is just as important to consider other factors related to your mortgage. You do not only look into the interest rate, but make sure you consider the following as well:

-The amount you still owe. The amount you can refinance is determined by the amount you have paid for your mortgage and how much you still owe.

-The length of time you have been paying for your existing mortgage. If you have paid 15 years out of a 20 year mortgage term, refinancing will cause you to extend your payment once again.

-Your credit rating. If your credit score is great, then you will most likely have no problems with home mortgage refinancing approval. On the other hand, those with low credit rating will not only face difficulties with approval, but may be faced with higher interest rates or charges as well.

-How long you intend to stay in your home. If you intend to sell your house in a year or two, then you will most likely not benefit if you refinance. But if you will live for longer than ten years, refinancing can help you pay off your home sooner with some monthly savings on top.

-How much bills you pay for each month. If you are having trouble making ends meet or having problems paying of credit card bills and unsecured loans, refinancing can be a good solution to start with a clean slate by consolidating. Refinancing can help you save on monthly payments and get you started in saving for the future.

Tips to Ensure Financial Success with Refinancing

After you have carefully thought of the factors stated above, make up your mind as to whether refinancing is definitely a good financial decision for you. If you believe so, here are some tips to help you ensure success with home mortgage refinancing:

-To make home mortgage refinancing more worthwhile, make sure that the interest rate is significantly lowered, say at least 2 or 3% lower than your original mortgage. Consider the points as well. Lenders usually charge more points with lower interest rates, so make sure you weigh accordingly.

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

-Shop for a good lender. Be wary about fraud lenders, as they have become rampant in the recent years. Research about 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 to you at closing.

Home mortgage refinancing may offer you the best chance you have to get your finances straight, but it can only be so if you do it right.

Author: Nicholas Bregozzo
If you believe your mortgage isn’t as suitable as it once was, perhaps it’s time to refinance your mortgage. Also when you refinance, it’s possible to incorporate other debts into the mortgage to handle them more efficiently.

When it comes to such an important decision such as refinancing your property there are some very important decisions to consider first:

1. Is your current mortgage the best deal for you?

Even though your current mortgage may not be the right one, it’s a fact that most people are reluctant to refinance because they are uncertain about the alternative or are reluctant to “rock the boat”.

Suffice it to say, by refinancing your property to a more competitive and suitable loan, you could save yourself thousands. There are hundreds of loans to choose from, each one different to the next, and its important to shop around and be an informed consumer.

Guiding you through this maze choice is your experienced and qualified mortgage broker, like the lending specialists Debt Fix uses.

2. Plan

Before you refinance your home, you should plan ahead and decide what you want to do and where you see yourself financially in 2 years, 5 years and beyond. When you speak with your mortgage specialist, you should make this clear.

For instance, do you intend on keeping your property, sell in a couple of years or keep the property as an investment to earn an income. Whatever the plan, there should be a suitable option.

3. Budget

It’s important to know how exactly the new mortgage will fit in with your lifestyle. For this reason a budget is essential so that you know exactly how much the mortgage will cost, the benefits and savings.

4. Debt Management

When you refinance, it’s a great opportunity to ease the burden of debt.

These days, it’s common for people to have 3 or more credit cards and with consumer debt at record highs; debt for a lot of people is an issue. Through refinancing, you can eliminate this debt by incorporating into the mortgage, saving potentially thousands on interest.

5. Understanding the fees

In some circumstances, if you refinance your mortgage you may be charged a fee. From the outset, you should understand what these fees are (if and) and how they compare to any overall savings. Its fair to say that whilst there may be an exit cost, such fees may be bearable when looking at total overall savings for the loan.