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Refinancing Mortgage
Refinancing mortgage loans is becoming quite popular today with many homeowners. While years ago when you got a mortgage to buy a home, you usually paid on the same mortgage for years until it was paid off, a lot has changed since then.
One reason why refinancing mortgage loans is so widely used is that there is a larger variety of types of mortgage loans available to home owners. Banks now offer refinancing mortgage loans, home equity loans, reverse mortgages and more.
Debt consolidation is another reason many homeowners choose refinancing mortgage loans. Often they need additional cash for a vacation, wedding, medical bills or other personal expenses. Anytime you get a loan of a sizable amount, the bank requires the borrower to put up some collateral towards the loan.
You're probably wondering where the extra collateral is coming from, since your home may be your only asset.
When a bank borrows money for the purchase of a home, for their own protection, they usually will only borrow up to 80% of the value of the home. They're not as concerned with the price of the home as they are the value of the home.
In case of a foreclosure, it's the value of the home that will concern them. If you are buying a home that's valued at $100,000, they'll borrow up to $80,000 towards the purchase. As the years go by, the balance of the loan decreases while the value of your home increases.
If you're considering refinancing your mortgage loan for extra cash, they'll do an appraisal on your home. If your home is now valued at $120,000, they'll borrow up to 80% of this amount, which is $96,000. If the balance of your mortgage is down to $70,000, you have $26,000 of extra equity on your home to borrow against or use as collateral.
This is why many people choose refinancing mortgage loans as a way to pay off extra debts or get money for other expenses.
Refinancing mortgage loans is also used as a way to improve their credit scores and pay off other debts. By again using the equity in their home, they can redo their current mortgage and pay off debts at the same time, giving them less monthly payments.
With less monthly payments, they are able to make the payments on time, thus improving their credit rating. Refinancing mortgage loans is used for debt consolidation more than any other reason.
When banks take applications for loans, they always run a credit report before giving the loan. The higher your credit score, the better interest rate you'll generally be offered from the bank.
This is why it's important to make all your monthly payments on time. Some people that use refinancing mortgage loans as a means of getting out of debt find themselves paying a higher interest rate because their credit rating is worse when they originally took out their mortgage.
Refinancing mortgage loans often gives couples a second chance to get ahead.
Current Mortgage Refinance Rates Specific links
Current Mortgage Refinance Rates News
Real estate industry pushes Senate on refi bill - MarketWatch
 Washington Times | Real estate industry pushes Senate on refi bill MarketWatch Under the plan, homeowners could take advantage of current market mortgage interest rates, which are between about 3.875% and 4.5% versus the 5% or 6% that some homeowners now pay. The bill would go further than the existing Home Affordable Refinance ... HARP 2.0: Good News For Home Owners Who Are Upside Down Push intensifies to pass home-loan refinancing bill Mortgage Q&A: Borrowers hit by mess others made |
Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances - FreeRateUpdate.com
 Eastern Morning Herald | Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances FreeRateUpdate.com With the convenience and ease of an online inquiry for any type of mortgage, it is no surprise that mortgage applications are on the rise considering how low mortgage rates have fallen. Current 30 year fixed mortgage rates are at 3.375%, 15 year fixed ... Current Mortgage Rates: SunTrust, TD Bank and US Bank Home Purchase Rates for ... Current Mortgage Rates for Thursday, May 24, 2012 Bankrate: Mortgage Rates Hold at Record Lows |
US 30-year mortgage rate falls to record 3.78 pct. - BusinessWeek
 International Business Times | US 30-year mortgage rate falls to record 3.78 pct. BusinessWeek That's down from 3.79 percent last week and the lowest since long-term mortgages began in the 1950s. The average rate on 15-year fixed mortgage, a popular option for refinancing, held steady at 3.04, matching the record low hit last week. Freddie Mac: 30-year mortgage rate down a tick at 3.78% Mortgage rates hit record low of 3.78% Record-Low Mortgage Rates - Are They Hurting US Housing Market? |
Time to Refinance While Mortgage Rates are So Low - FreeRateUpdate.com
 Best Syndication | Time to Refinance While Mortgage Rates are So Low FreeRateUpdate.com This is evidence that mortgage refinance applications for traditional conforming mortgages are still on the rise. Record low conforming mortgage rates are drawing in current borrowers who are looking to save and put more money in their pockets. Record-low mortgage rates spur refinancing MBA Weekly Survey: Refinance Applications Increase Because of Record Low ... 30-Year Fixed Mortgage Rate Rises Slightly After Falling to All-Time Low Last ... |
LendingTree Analysis Indicates Greater Savings with Adjustable-Rate Mortgages ... - MarketWatch (press release)
LendingTree Analysis Indicates Greater Savings with Adjustable-Rate Mortgages ... MarketWatch (press release) According to the US Census Bureau, Americans move or refinance every 6-7 years on average, making the current adjustable rate mortgage a viable option for the average homeowner. In a worst-case scenario, typical 5/1 ARM rates would adjust to its ... |