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Mortgage Refinancing Help: Business and Economy
“These days most people request a Good Faith Estimate (GFE), but have no clue what to look for on the GFE. Make sure you request a GFE that has ALL fees estimated and disclosed. This includes: origination points, processing, lender, appraisal, title, escrow... ALL FEES... especially the Yield Spread Premium or YSP.
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Mortgage Refinancing Help
: Regional: Central America
: Business and Economy (17)
 Don't escrow taxes and insurance. Unless you're undisciplined, avoid putting monies in escrow to cover your property taxes and homeowner's insurance. There's usually a fee for this privilege that runs under 1 percent of the loan amount, in states where it's allowed. "Paying the fee will allow you to time your tax and insurance payments to your benefit," says Bank South's Steve Austin. For instance, you may be able to prepay taxes that are due next year and use those payments to reduce your current tax bill. Moreover, you get to hang onto your money longer. That may be an advantage when interest-bearing accounts start paying more.
 See also:
 Dichter & Neira »
Research consultants for marketing in Central America with offices in Costa Rica and Panama. Includes material in English and Spanish.
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 Mesoamerica Energy »
Dedicated to the development, construction and operation of renewable energy projects in Central America. They describe their current wind projects and overview their corporate vision and key staff. [English/Spanish]
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 Grupo Transmerquim »
Marketing and distribution of raw materials and chemical products. Includes a description of services for clients and suppliers, and a list of products.
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 Preseleccion Empresarial »
Human resources consultants. Includes a company profile and regional offices, jobs database, client services, resume submittal, and contact information. [English/Spanish]
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 Colite Outdoor »
Provider of billboards and outdoor signs with offices throughout the region. Includes company history and map of placement locations. [English/Spanish]
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 There is a refinancing myth that says you should not refinance your mortgage unless your interest rate will be at least two points less. This myth is not necessarily true if there are other benefits to the refinance or other reasons behind it.
It's better to follow the 2% Rule which suggests that you can enjoy the benefits of a home refinance if your mortgage refinance rate is 2% lower than that on your current loan. The interest savings will help you recoup the costs you've paid for the new loan provided you stay in the property for a certain period of time (break-even period). However, there are no-cost as well as low-cost refinance loans wherein the costs are included into the loan. But you can expect comparatively higher rates on such loans. Moreover, these loans are limited when the market is in a credit crunch.
Don't rely on published rates. "No one's going to advertise their worst product," says Keith T. Gumbinger of HSH Associates, a Butler, NJ, firm that tracks mortgage rates. "They advertise the best possible rate, which probably gets offered to only the top 10 percent of applicants."
Ask the lender or broker for a comparison of the up-front costs, principal, rate, and payments with and without this rate trade-off.
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