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Home Loan Loan Mortgage Refinance Article
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Refinance
Refinance is a term used in the banking institution. A refinance takes place when a borrower wants to take out another loan to pay off a current loan, usually with different terms.
The most common refinance is that of a home mortgage. Many home mortgages are taken out as an A.R.M, which is an adjustable rate mortgage. With an adjustable rate mortgage, the interest rate fluctuates along with the current market rate. In other words, when the current market rate goes up, the interest on your loan also goes up whereas if it goes down, so will your interest rates go down.
In some circumstances, this can work to a borrower's advantage. However, when the stock market is shaky, an A.R.M. can put a borrower at a very high disadvantage.
When the current market rate goes up and causes your interest to go up, this often causes your monthly payment to go up. Many borrowers will use this opportunity to refinance their home either at a different lending institution or at the same one but with different terms.
Another type of home mortgage is an amortization that is ballooned. For instance, they interest rate is fixed at a certain percentage and amortized for 20 years, but the loan is ballooned for 3 years. At the end of the 3 years, the loan comes up for renewal so the borrower will have to refinance for another 3 years or whatever length they and the lender agree upon.
Sometimes, the lender and borrower will do what is referred to as a "straight renewal" where the terms such as interest rate and payment amount stay the same, but the loan is just extended for another length of time.
Many times borrowers refinance their home mortgage to consolidate their other debts as part of their loan. It's like a new loan because additional funds are given out, yet the home mortgage part of it is a refinance.
Although home mortgages are the most common type of refinance, they are not the only type of loan that can be refinanced. An auto loan, personal loan or any type of loan can be a refinance.
The reasons may be to add additional funds, to get better interest rate, to switch lending institutions or because the term of the loan is up. When you do refinance any type of loan, always shop around for the best interest rates and terms.
Just because you're getting the loan from your own bank isn't a guarantee that you are getting the rest deal. Banks will often give new customers better rates as a way to draw in new business.
If this happens with you, you may be able to use this as leverage with your bank to be competitive.
Home Loan Loan Mortgage Refinance Specific links
Home Loan Loan Mortgage Refinance News
Push intensifies to pass home-loan refinancing bill - The Hill (blog)
 Washington Times | Push intensifies to pass home-loan refinancing bill The Hill (blog) Several other Senate Democrats are working on legislation that would tackle various barriers to refinancing, including expanding refinancing to allow underwater borrowers whose loans are not government-backed to refinance into new mortgages with the ... HARP 2.0: Good News For Home Owners Who Are Upside Down Mortgage Q&A: Borrowers hit by mess others made Real estate industry pushes Senate on refi bill |
Freddie Mac: 30-year mortgage rate down a tick at 3.78% - Los Angeles Times
 Bloomberg | Freddie Mac: 30-year mortgage rate down a tick at 3.78% Los Angeles Times Reflecting the bargain home-loan rates, the Mortgage Bankers Assn. on Thursday increased its mortgage origination forecast for 2012 by almost $200 billion — but attributed the greater volume entirely to an increase in borrowers refinancing existing ... Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance US 30-year mortgage rate falls to record 3.78 pct. BofA May Turn Profit on Mortgage Buybacks, Credit Suisse Says |
Real: FHA streamline refinance gets cheaper - The Republic
Real: FHA streamline refinance gets cheaper The Republic The Federal Housing Administration will reduce mortgage fees significantly for borrowers who qualify for the FHA's streamline refinance program. The lower fees go into effect June 11 and will be available to borrowers who refinance loans that were ... FHA Streamline Refinance Set To Spur Refinance Boom |
1st-quarter profits up 34% for Iowa banks - DesMoinesRegister.com
1st-quarter profits up 34% for Iowa banks DesMoinesRegister.com Bankers say more people are refinancing their mortgages, thanks to rock-bottom interest rates, driving profit but not loan growth on the books. Loan portfolios at the 343 Iowa-based banks shrank 1.1 percent through January, February and March, ... |
Mortgage Refinance in Today's Real Estate Market - King of How To News
 King of How To News | Mortgage Refinance in Today's Real Estate Market King of How To News By Ryan Lawrence on May 24, 2012 with 0 Comments Freddie Mac's most recent survey reports that mortgage rates continue to remain at record lows, allowing qualified buyers the perfect chance to snag affordable loans on very nice properties throughout ... No Drop in Refinancing Expected Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances Mortgage applications up on refi demand: MBA |