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Home Refinance Article
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Mortgage Refinancing
Mortgage Refinancing is becoming more and more common today with the rising costs of buying or maintaining a home as well as the fluctuating interest rates.
When we take out a mortgage to purchase a home, most of us feel it will be a one-time mortgage that we'll be paying on for a specific number of years until it's paid off. Mortgage refinancing is usually not something we're thinking of at this time. However, many individuals and couples choose mortgage refinancing as an option for lower interest rates or to get additional cash out of the equity of our home.
Banks and lending institutions probably do as many loans for mortgage refinancing as they do for new mortgage loans today. Our homes are probably the only asset we own that doesn't depreciate and lose value through the years. When we take out our original mortgage, we are borrowing on the value of the home.
Most banks, however, will only borrow up to 80% of the value of the home. This is to protect them in the case of a foreclosure. If for some reason, you couldn't make the payments and they have to repossess the home, they are guaranteed getting their money back. Homes that are repossessed by banks are generally put up for auction.
Unfortunately, they aren't always sold for their full value and the banks don't always get back all their money. With economy as shaky as it is today, unfortunately many couples are losing their homes to foreclosure.
Foreclosure is not good for the lender or the borrower because it costs both of them a lot of money in legal fees and court costs. For this reason, lending institutions will usually work with you as much as possible to help you save your home.
Mortgage refinancing is usually the first recommendation they'll make to you as an effort to help you get ahead. Most people don't reach this point until they've had the mortgage for a few years so their loan balance has decreased while their home value has increased.
Mortgage refinancing gives them a chance to get in a better financial situation.
Most people that reach this point are heavily in debt with other bills besides their mortgage. Mortgage refinancing gives them the opportunity to pay off their current mortgage, get extra cash to pay off additional debts and, often, lower their monthly payments.
With the other debts paid off, these are monthly payments they'll no longer have to make, allowing them to only have their mortgage payment to make. When they do mortgage refinancing, they usually will extend the life of their loan as well.
When their financial situation is better and their credit rating has improved, they have the option of mortgage refinancing again to lower the term of their mortgage.
Home Refinance Specific links
Home Refinance News
Push intensifies to pass home-loan refinancing bill - The Hill (blog)
Push intensifies to pass home-loan refinancing bill The Hill (blog) Mark Zandi, chief economist with Moody's Analytics, told a Senate panel Thursday that he supports a measure to eliminate hurdles for homeowners to refinance into lower interest rates under the Home Affordable Refinance Program (HARP), and suggested ... HARP 2.0: Good News For Home Owners Who Are Upside Down Northen Virginia Refinancing Expert Explains New Home Affordable Refinance Program Don't HARP on it, refinance program too good to pass up |
Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance - MarketWatch (press release)
 Chicago Tribune | Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance MarketWatch (press release) J. "As the leading advocate for homeownership, Realtors(R) knows that helping consumers remain in their homes must be a priority if we are going to move the housing market and our nation from a fragile recovery to long-term prosperity," said Veissi, ... Freddie Mac: 30-year mortgage rate down a tick at 3.78% Record-Low Mortgage Rates - Are They Hurting US Housing Market? 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 ... In the streamline program, the FHA asks for limited documentation from borrowers and doesn't require an appraisal of the home. The no-appraisal rule allows owners to refinance even if they owe more on their mortgages than their houses are worth. FHA Streamline Refinance Set To Spur Refinance Boom |
Housing recovery underway as home prices, sales show strong gains - WFMJ
 Globe and Mail | Housing recovery underway as home prices, sales show strong gains WFMJ More >> A lot of homeowners with underwater mortgages would like to refinance, but they don't qualify for HARP (the federal Home Affordable Refinance Program). Do they have other options?More >> What kind of credit score do you need to qualify for a ... Real Estate News – Home Prices and Sales Increase |
Over 40 percent of homeowners owe more than their house is worth - Auburn Journal
 Los Angeles Times | Over 40 percent of homeowners owe more than their house is worth Auburn Journal Currently 20 to 25 percent of the homes for sale in the area are short-sales, according to Johnson. The federal government also rolled out new regulations to help homeowners through the Home Affordable Refinance Program 2. Despite Home Value Gains, Underwater Homeowners Owe $1.2 Trillion More than ... Underwater Nation: 16 Million Borrowers Owe More on House Than It's Worth |