Following mortgage refinance news and trends is an essential step in knowing when to refinance a loan. When interest rates fall to their most likely lowest point, refinancing can save a borrower a substantial amount of money. Knowing when property values are rising can help a borrower to know how much equity they have available to refinance secured and unsecured debt.

Locating refinance companies is only the first step in refinancing. Gathering information about market trends is also important for any investor. Mortgage rates, available credit, lender availability and refinance criteria changes often. To stay up to date, consider the following information:

1. Determine if the mortgage refinance news and data is up to date and verified.

2. Realize that some refinance loan data at the local level is different from that data at the national level.

3. Insist that information on refi companies have a basis that is non-political, but rather fact-based information.

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Gather data on home mortgage refinance from trusted news sources

Data from refinancing mortgage companies can give investors an idea of where the market is heading. Investors can spot home sales trends, home value changes and development prospects by monitoring data from trusted sources. This information can then be used to refinance current loans.

I recommend: Seek out trends in mortgage loan refinancing from industry news sources tracking it. Data on the number of refinances, the cost and the trends within the industry can be obtained from Bloomberg. For more local trends in real estate refinancing, look to local news sources. The Boston Globe reports on refinance trends within the Greater Boston area.

Learn about home loan refinance market data from governmental agencies

The government offers a number of organizations that report on trends and market news on refinances and home loans for residential and commercial lending. Visit these websites to gauge timing to refi home loans.

I recommend: Freddie Mac provides refinance activity reports on a regular basis and gives you an update on trends in the industry. The U.S. Department of Housing and Urban Development reports on trends in housing, mortgage data and refinances. Gather regular updates on home buying and selling trends. Mortgage and refinance companies use these sources to determine rates.

Invest time in learning refi information prior to investing

Prior to contacting mortgage refinance companies, learn about trends that would affect the loan. Find out about the current interest rates. Learn about housing values within the area. Seek out trusted, accurate information to gauge the lender's willingness to provide an affordable loan.

I recommend: Price mortgage refinancing rates and costs before investing. To determine the estimated value of the property, visit Zillow. The agency tracks the value of properties based on the latest data on house sales in the region. This can help estimate value for refinance purposes. MortgageLoan tracks refinance rates for loans. Use this to estimate the cost of such loans.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Tracking the current market trends and news of the industry can help investors get the best loan possible. With this information, an investor who is considering a refinance mortgage loan can determine if now is the proper time to do so by looking at trends, determining property value and by noticing what others in the industry are doing. Do this first to ensure lenders do not take advantage.

Got a mortgage? Looking to lower your monthly payments, take out some cash or tweak the terms? No worries.  A mortgage refinance is one of the easier things to accomplish in today’s financial world.

Refinancing basically means you pay off your existing mortgage and replace it with a new one — with luck at better terms. The trick is to first figure out if a mortgage refinance is worth the bother and possible expense. Here are key reasons people refinance, and what might or might not work for you.

1) To get a lower interest rate. Naturally, this is tougher to accomplish if rates are rising or flat. But even if rates are headed up, you might lower your rate by switching to a different type of loan (an adjustable as opposed to a fixed-rate loan, for example).
 
2) To build equity faster. Some folks refinance into a shorter term loan so they can build equity in the underlying property more quickly. While the payments on a 15-year loan, for example, are higher than a 30-year loan, you pay less in interest and more toward the principal loan balance (thus building 'equity').

3) To change into a different type of loan. You could choose a shorter term, or longer term; a variable that adjusts in 3 years, 5 years, or more. Or move to a fixed rate from an ajustable. There are lots of possibilities.

4) Leverage your better credit rating. If your credit rating has improved, you might qualify for better terms, even if rates haven’t dropped.

5) Cash in some of the equity you’ve built up. While this is potentially dangerous if home values fall and interest rates rise, one of the most popular reasons to 'refi' a mortgage is to gain cash to use for other purposes. A $100,000 mortgage on a home that’s now worth $400,000 gives you $300,000 in equity to pay with. If this is your main goal, you should also consider a simpler home equity line of credit that avoids the need to refinance your mortgage (but still has tax-deductible interest).

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Play the mortgage refinance competition

Mortgage refinance is hugely competitive. Lots of lenders want your business -- especially if your credit history is strong, income and assets solid and you've already built equity in your home.

I recommend: The first place to look is the lender who holds your existing mortgage. They approved you once, and (depending on your payment history) might eagerly do so again. And check the refinancing offers you probably get in the mail from lenders of all kinds who obtain names from public real estate ownership records. Just be sure to read the fine print and make sure you clearly understand all of the fees and costs involved. A few places to look include Countrywide, Amerisave, Ditech and GMAC Mortgage.

Shop and compare online

The web makes it easy to see what's being offered.

I recommend: These mortgage sites can help you shop and compare refinancing rates and terms: LendingTree, E-Loan, PickaMortgage and HFC.

Find out if refinancing makes sense

Ask yourself these questions: 1) How long do you plan to stay in the home? 2) How many years remain on your existing mortgage? 3) Can I afford the costs involved? 4) Will I save money over the life of my loan?

I recommend: The E-Loan website offers a handy Refinance Review that you can use to help decide if refinancing makes sense, and what type of loan would work best to meet your goals. FannieMae, which provides funds for housings but does not make loans directly to borrowers, offers helpful information about when refinancing makes sense.

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• •  Things most lenders will require include income verification, information on debts and assets, account numbers and balances for savings and investments, a title search, copy of the site survey and a property appraisal.
• •  Possible fees and charges include an application fee, title search and title insurance fees, appraisal costs, loan origination fees, discount points, and legal services fees.
• •  You can lower your rate by paying 'discount points' up front. Discounts points are essentially pre-paid interest; the more you pay now, the less you have to pay in regular monthly payments. Thus, loans with no points will generally carry a higher interest rate, all other things being equal.

Refinance companies specializing in business and commercial refinancing of loans help businesses to take advantage of lower interest rates or better loan terms. Refinancing a business loan can be beneficial to an investor with a mortgage loan or, in some situations, an unsecured line of credit.

Business refinance is similar to traditional refinancing of loans in the consumer industry. The loan is applied for through a lender willing to take on the loan. The borrower may be able to obtain lower interest rates, lower repayments or a better term. When considering these loans and for a better understanding of mortgage refinance basics, keep in mind the following:

1. Choose refinancing mortgage companies specializing in commercial property when possible.

2. Seek out a refinance loan only after assessing its benefit in the short and long term.

3. Notice mortgage refinance costs, including closing costs, which can make refinancing less affordable in some situations.

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Work with refi companies specializing in secured and unsecured loans

Refinance mortgage loan debt into a new, secured loan. Some lenders will consider refinancing unsecured debt including credit lines. This has become more difficult in recent times. Instead, many borrowers are refinancing their real estate and other assets along with unsecured debt into one, larger, secured loan. The interest rates on secured loans are more affordable than unsecured.

I recommend: Learn about options with mortgage refinance companies by using online sources to find lenders. E-Loan helps to connect borrowers with lenders in the commercial lending arena. They also offer the latest loan information and rates. Broker Service Network provides help in locating lenders for secured and unsecured business loan refinancing.

Consider refi home loan interest rates

For any refi, the interest rates of the loan are among the most important considerations. Interest rates range for refinances depending on the market, the type of loan and the credit history of the borrower. They are similar to the rates charged on first mortgage loans.

I recommend: Look to industry reporting services for mortgage interest rate information. For business or home loan refinance, consider sources such as Yahoo! Real Estate. This service captures interest rates offered by a wide range of lenders for easy comparison. Citigroup offers a comprehensive website providing information for business and residential loan holders on refinancing, including the available interest rates.

Calculate the benefit of home mortgage refinance

Mortgage loan refinancing allows the borrower to obtain better loan terms. Ensure that this is possible. Use a loan calculator to determine the benefits of refinancing. Factor in the cost of closing costs. Estimate fees from lenders and the actual cost of extending the loan for a longer term.

I recommend: Gather information and resources from mortgage and refinance companies. Business Lenders provides information and resources on Small Business Administration loans and the benefits of them. Learn about the costs associated with refinance at AllBusiness. Use the refinancing calculator located at Bankrate to estimate costs and to compare several lender offers.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Mortgage refinancing is often done in the name of the business owner, especially in cases of small business. If the business has established its own credit history, refinancing is a good way to get the debts of the business out of the owner's need. Talk to your lender about this benefit.

Whether you have an adjustable rate mortgage or a fixed rate mortgage, mortgage refinance can offer you benefits. Different options of mortgage finance, such as rate and term refinance and cash-out refinance, can allow you to lower your interest rate, lower your monthly mortgage payment and lessen the duration of your mortgage loan.

As you research the mortgage refinance opportunities available to you, become familiar with these mortgage refinance key terms to ensure that you understand your options.

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Rate and term refinance

Rate and term refinance is using a new mortgage loan with a lower interest rate and better terms to pay off your existing loan.

I recommend: TheTruthAboutMortgage.com offers more information on rate and term refinance options.

Cash-out refinance

In cash-out refinance, a loan is secured for a higher amount than the original mortgage. The difference between the two loans is based on equity in the home. Cash-out refinance usually incurs a higher interest rate than the rate and term refinance option.

I recommend: Read more about cash-out refinance at QuickenLoans.com.

Adjustable rate mortgage

An adjustable rate mortgage (ARM) is type of mortgage with an interest rate that changes throughout the duration of the loan. An initial interest rate (usually a low interest rate) is offered for a short amount of time. After this time period, the rate can fluctuate. Most home owners who choose to refinance their mortgage have an adjustable rate mortgage.

I recommend: The Federal Reserve Board offers extensive information on adjustable rate mortgage advantages and disadvantages.

Fixed rate mortgage

A fixed rate mortgage offers the stability of an unchanging interest rate and payments for the duration of loan. Fixed rate mortgages are available in 15 or 30 year terms. For home owners who have a 30-year fixed rate mortgage, refinancing may be beneficial to lower the interest rate and pay off the home earlier.

I recommend: JamesThorton.com provides further information on fixed rate mortgages.

Amortization chart

An amortization chart is a schedule of payments made and future payments on a mortgage. The amortization chart shows how much of a monthly payment goes to the principal and to the interest. A useful tool for mortgage refinance, an amortization chart is used to determine if refinancing would be beneficial to a homeowner.

I recommend: AccountingCoach.com offers more information on amortization charts.

Refinancing fees

Refinancing fees are paid during refinancing to cover the application process, the search and insurance for the title, prepayment penalties (if applicable) and loan origination fees. Refinancing fees are similar to closing costs associated with the initial purchase of a home.

I recommend: LendingTree.com provides further information on the types of refinancing fees that exist.