Oh Ma Gawd

If you are like most Americans, you have a pile of credit cards bulging in your
wallet. The credit card companies make it easy for us to open more and more card
accounts, each with a higher credit limit. Start using them and you will be in
trouble fast. You may start out using them because they have low interest
rates, but before you know it the six month introductory period is over and you
are paying through the nose to use that money. It certainly would be nice if
that zero percent offer applied all of the time instead of just during the first
six months, but that is not the way the credit cards make their money.

Each day’s mail brings at least one, and usually two or three credit card
offers. Every company, from American Express to Capital wants to put their
credit card in your wallet. They almost seem in the business of advertising
credit cards, instead of the business of lending money. Just think about all of
the paper they are wasting, because most of those offers go in the round file
anyway, right? But maybe you hold onto a few that offer the special low or
zero rates, just in case you want to switch. Because the credit card companies
know how the human mind works, they will give you a zero percent card, but it
only applies to balance transfers. If you make purchases, you will be charged
the higher rate. But they know you will make purchases, so they do not worry much
about that. And once the introductory period is over, the higher rate will apply
on the balance transfer, so they will really start to make money then. Unless
you move fast and put the balance on another credit card with a low rate.

How to keep up with this? Go online and you will be able to find all of the
deals you need to get lower interest rates on your credit cards. The rates and
the offers change constantly, so you can always be up to date when you are
shopping online. But just remember to just move the balances; if you start to
charge on these cards, you will be falling into the trap that the credit cards
want you to fall into and paying them their high interest rates.

The most common reason most people refinance is to save money, but many people refinance for various other reasons.

1. Refinancing to Lower Your Monthly Payment for an Existing Loan.

You can refinance your existing loan at a lower interest rate thus reducing your monthly loan payments. With interest rates at their lowest for years, you can find some excellent rates – sometimes far much lower than what you’re paying for your current loan or mortgage. Refinancing your mortgage or loan when rates are down could save you hundreds of pounds every month and thousands over the life of your loan.

2. Refinancing to Consolidate Debts.

You may choose to refinance in order to consolidate debts and replace high-interest loans with a low-rate loan. The loans being consolidated may include higher purchase loans, student loans and credit cards. You can clear all your existing credit cards, loans and other debts and replace them all with one low cost cheaper monthly payment. On a £12,000 loan some homeowners can save in excess of £250 a month which is a considerable saving. A debt consolidation loan is a smart solution for anyone who has many outgoing monthly payments. A Refinance loan allows you to repay existing loans from the proceeds of a new loan – the loan is usually secured on property or your home.

3. Refinancing to Reduce the Term of the Loan.

Reducing the term of your loan can help you save money over the life of the loan. For example, refinancing from a 7-year loan to a 3-year loan might result in higher monthly payments, but the total of the payments (or total cost of the loan) made during the life of the loan can be reduced significantly. You’ll also be able to build up your equity faster. Use this free loan calculator (http://www.commercial-mortgage-guide.org.uk/calculator/) to see how the total cost of the loan reduces when the repayment period is shortened. A refinance loan can save you thousands in interest charges over the life of your loan.

4. Refinancing to Switch From Variable to Fixed Rates.

You can also refinance in order to switch from a variable rate loan to a fixed rate loan. The main reason behind this type of refinance is to obtain the stability and the security of a fixed loan. Fixed loans are very popular when interest rates are low, whereas variable rate loans tend to be more popular when rates are higher. When rates are low, you can refinance to lock in low rates. When rates are high, you may prefer the short term discounted variable rate loans to obtain lower payments. A major benefit to refinance is the ability to lock in a low interest rate for the duration of your loan.

5. Refinancing to Switch from One Lender to Another.

Some lenders offer better mortgage or loan deals than others. They may offer better customer support services, more flexible loan repayment terms or just a service that is more suitable for your needs. Refinancing your loan can allow you to drop your current lender and switch to a new one with a better loan or mortgage package.

You should carefully consider the savings you can make by refinancing against the costs and penalties. Any homeowner can refinance, but the point is to find a deal that will improve on your existing mortgage or loan. More articles about refinancing are available at:

http://www.commercial-mortgage-guide.org.uk/refinancing/