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Mortgage Refinancing Help: Economic Systems
“Refinancing is not the only way to decrease the term of your mortgage. By paying a little extra on principal each month, you will pay off the loan sooner and reduce the term of your loan. For example, adding $50 each month to your principal payment on the 30-year loan above reduces the term by 3 years and saves you more than $27,000 in interest costs.
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Mortgage Refinancing Help
: Science: Social Sciences: Economics
: Economic Systems (28)
 Be specific about the loan you want. The more precise you are, the easier it will be for a loan officer or mortgage broker to find the best rate. For example, do you want a 15-year or 30-year mortgage? Do you need a "jumbo" mortgage (more than $333,700)? Are you willing to pay points to reduce the interest rate? The answers to these questions will depend on several factors, including when you plan to sell the house and how soon you want to retire your debt. Only you know the answers, but the sooner you know them, the better.
 See also:
 An Economic System Out of Control »
Article based on David C. Korten's 'When Corporations Rule the World'.
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 Josef Hasslberger Page of Economics »
Articles inspired by the "natural economic order" of Silvio Gesell, which concerns money without interest or inflation.
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 Using Cows to Model Economic Systems »
Humor.
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 What Is an Economy For? »
Atlantic Monthly article from 1994 which deconstructs some of the differences between the Asian, American and European economic systems.
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 Comparative Economic Systems Web Resources »
Accompanies a Comparative Economic Systems textbook.
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 Progressive Utilization Theory »
Integrates economic democracy and spiritual values-an answer to capitalism and communism.
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 Post-Autistic Economics Network »
Offers free subscriptions to the Post-Autistic Economics Review and over 100 articles about the post-autistic economics movement.
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 WebEc - Economic Systems »
Economic Systems
- Contains links to, and descriptions of, WWW resources related to Economic Systems.
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 Carefully review the estimated closing costs. If you decide to lock in the rate, the lender will send you a "good faith estimate" of your closing costs within three days. Go over the numbers carefully, and compare them to the ones that appear on the final settlement statement (the HUD-1) from your previous mortgage.
If you are paying private insurance on your current mortgage, refinancing may allow you to do away with this unnecessary expense.
Get your interest rate and closing costs in writing as soon as you decide on a lender to work with. Get your lender to give you a commitment in advance of all of the costs that will be involved with your loan. Find out if the refinance loan you are getting has a pre-payment penalty as well. Sometimes lenders will leave out important information like this, if they think it might scare you away from refinancing with them.
If there is a big difference between the initial interest rate and the APR listed in the ad, it may mean that there are high fees associated with the loan.
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