Yes the Feds cut the rate again but you need to know is this going to benefit you? You may have though of refinancing your home loan and are not sure what is the best move for you. It is important to know that a fed cut does not automatically impact the long term 30 year fixed home loan rate. You may not get what you are looking for by refinancing, so it is important to look at all of the facts.

It is important to first understand that the feds have cut the Fund Rate which is the rate at which banks lend each other money. Now usually when this happens the Prime Rate will also be lowered, but what does that mean for you and me? Basically that any type of loan that is tied in with the prime rate will be affected, for example you usually see short term loans affected by this, such as a Home Equity Loan. Know that when this rate is cut it also impacts the rate of interest you can earn in a CD or a savings account. » Read more: Home Mortgage Rates – Feds Cut Rate

Home mortgage refinance is the process of taking a mortgage on the same property which was used as collateral for another mortgage. The loan obtained on the second mortgage can be used to clear the first mortgage. This enables the borrower to convert a high-interest mortgage loan in to a low-interest loan, thus saving considerably on the monthly payment as well as overall interest.

With low interest rates, many people are refinancing their home mortgages. Refinancing is also one option to meet major expenses such as college fees or medical bills, or for debt consolidation. A person who has a previous home mortgage loan of $100,000 can take another mortgage loan of $120,000, pay off the first mortgage, and use the remaining $20,000 for meeting expenses. You can consider refinancing if the current interest rates are at least 2% less than the interest rate you are paying on the mortgage.

However, refinancing is not a very good option if you are planning to move out of the house soon, or sell the house. Also, consider the other costs involved in refinancing, such as pre-payment fees for the previous mortgage, transaction fees of the new mortgage, settlement costs, discount points and so on. Ensure that these costs are lower than the actual benefits from refinancing. » Read more: Home Mortgage Refinance Loan Brokers

Loss mitigation refers to a division of lending institutions which oversees delinquent accounts. Individuals employed in this field are referred to as loss mitigators. Their job encompasses working with mortgagors to cure past due payments, developing strategies to stop foreclosure, or engaging in strategies to keep foreclosure costs to a minimum.

Bank loss mitigation is responsible for handling most mortgage problems. Loss mitigators review customer accounts to determine which action is best suited. Common strategies include loan modification, mortgage forbearance, mortgage refinance, deed in lieu of foreclosure, and real estate short sales.

The biggest mistake mortgagors can make is to procrastinate about contacting their mortgage provider when unable to make loan payments on time. As a real estate investor, I have witnessed numerous homeowners lose their home simply because they couldn’t pick up the phone and attempt to work out a plan to save their property. Instead of being proactive, they threw in the towel because they believed the bank wouldn’t help them. » Read more: Loss Mitigation – Home Mortgage Options to Stop Foreclosure