If you are looking to refinance your home you now have many options that were not previously available. Local lenders are quickly becoming just another home mortgage option for homeowners. Obtaining a refinance is now done online by most homeowners. There are many options out there ranging from large scale operations that are connecting borrowers with lenders, small scale websites tailored to the local market that are run by local brokers and direct lenders which are playing an increasingly large role in the online mortgage marketplace.

The large scale operations are the companies that we have all heard of. You will see these lenders advertising everywhere you go. The giants of this industry will sell your information. This has become the biggest problem for consumers. You may receive more calls than you wish to be dealing with and it can make the process complicated. They will continue to contact you but in a less intimidating manner. This is a great concept because you can talk with several lenders and compare rates and fees, but it will require patience and time to handle your online refinancing with one of these sites.

Many local professionals now offer websites to advertise their services. You can quickly see that these are plain vanilla websites that were built with little cost. Homeowners that have little experience with the internet may benefit from this. You can go down to a physical office, look someone in the eyes, and there is generally a higher comfort level with the local lending approach. These local professionals will generally have a higher rate and fees than a large wholesale or direct lender would offer with online refinancing. It is difficult for these offices to handle the high overhead that goes a long with a mortgage banking firm. Your information will not be sold over and over if you work with one of these companies.

There are now websites that are operated by direct lenders as well. These websites can provide you with very helpful info. Current rates and fees can often be found on the front page of these websites. The high costs of these websites and systems will be built into your fees. It is not cheap to build complex sites and pricing engines. This additional overhead is ultimately paid for by consumers. Every dollar that is spend on advertising will have to be paid by someone. How did you find the last mortgage website that you went to? That company spent money to have you visit their website.

There is a fourth type of site out there. The growing popularity of these sites is making them more of a player. These sites are information brokers, you are able to obtain a better deal because the leverage your information. These hybrid sites take your information and find one lender that will be able to best meet your needs. When your information is delivered to a bank they have agreed to waive points and charges. You aren’t hassled by a bunch of lenders, you aren’t charged fees to refinance your home and you know that you are being contacted by one of the best possible lenders for your situation. This is growing in popularity for obvious reasons.

Every homeowner struggling with their payments is making the decision of maintaining increased payments or face foreclosure. The latter has a high risk of derogatory credit and foreclosure. So the burning question when faced with this dilemma is “Should I stay or should I go” or should I refi my home?

The facts are that many people took cash out, borrowed more than they can afford, took teaser rates, or applied using some form of a stated income loan which would often over inflate the borrowers actual income through the home refinance or home purchase process. World markets are in chaos, we are all finding it increasingly difficult to make the payments, and they have run out of options. When the bank threatens with foreclose several families are just walking away leaving the house to be taken. Is this the right option?

I don’t have the right or wrong answer here but I do know that up until the 90’s most people bought a house as a place to live and somewhere to stay and raise a family.I can understand that you may look at that as a traditional frame of mind, but it’s a fact of our present situation.It was a shock to some to see national home value increase seven percent a year though the nineties.  Lending practices began to recover from the S/L crisis and a new way of thinking was born in the lending world. Do you have a heart beat?What is your credit rating? Obviously you can afford a house.With that in mind you might be able to say stated income and teaser loans were common, due to a housing prices from the mid 90’s.Now we see the exposure with home values increasing too fast and people tapping equity to purchase luxury items. Most of us took money from our homes to purchase the things we could not normally afford, and this began a cycle of refinancing for the new toy everyone wanted that year.

Fast forward about 10 years to 2008 we are all faced with the dilemma should I stay or should I go.You might be thinking that you could just walk away from the house and possibly buy it back.  This is all true you can walk, you could buy your home for less, but do you really want to?Responsibility lies in the agreement borrowers sign at closing, the media frenzy is only encouraging people to walk away from there obligations.   Again You knew what you were doing when you took the cash out home refinance, you knew what you were doing when you bought the home, don’t bring everybody else down even further as somewhere along the line we must just stop this madness.I hope your reading this article right now with a renewed sense of hope; it is everyone’s responsibility to pull up their boot straps and save our economy and you can start with your mortgage.

Your home is a valuable asset. You can tell the home equity folks know this by the numerous ads aggressively promoting home equity loans and home equity lines of credit. They suggest you put your home asset to work. But is it a good idea for you? And, if so, which should you choose?

The advertisements are seductive, but remember “all that glitters is not gold.” Both loan options use your home as collateral for a loan. There’s nothing basically wrong with this idea other than the fact that you may be greatly risking your most valuable asset.

A home equity loan is a lump sum advance in the form of a second mortgage on your home. You borrow a specific amount for a certain period of time and pay back the balance with interest in installments.

A home equity line of credit, on the other hand, is a lot like a having another credit card. The lender agrees to lend a specific amount of money over an agreed period of time and the borrower can draw against this line of credit whenever they want.

Both programs use the equity in your home as collateral. Therefore, since the loan is secured, you usually get a lower interest rate than with a credit card. This is the main reason home equity loans are being touted as a great way to consolidate debt. Another benefit is that interest paid on these loans could be deductible on federal and state tax returns.

Sounds good doesn’t it? But, in many ways, the disadvantages can outweigh the advantages.

You need to be aware that using your home as collateral can be risky - you may lose your home. “Borrowers beware,” says the Federal Trade commission. This type of loan is only for homeowners with more than enough steady income to cover the extra monthly payments. And they’re certainly not for anyone who might need to move and sell their home before the second mortgage becomes due.

But that’s not how they’re being advertised, especially on the internet. Unscrupulous lenders promote these packages to the elderly on fixed incomes and to those with low incomes and poor credit ratings. They pretty much offer you any deal you want – whether it’s to your advantage or not – just to get your business. These scammers gamble on people being unable to make payments or to sell their home soon enough.

Then the sharks move in for the kill, foreclose on the home and take all the equity that’s been built into it. Foreclosures in California have doubled in the past year. And this happens everyday – all over the country.

So protect yourself. Always deal with a lender you can trust - preferably a local lender. Keep you head clear when dealng with easy loan approvals, low payments or the promise of quick cash. Don't get pressured into signing or making a decision too soon.

Always think it through carefully, get a second opinion and be absolutely clear exactly what you’re getting into. Remember, your house is on the line - don't risk your family's shelter!

Follow this advice and there’s a good chance you can keep your home.