Welcome to Refinancing Guide
House Mortgage Refinance Article
. For a permanent link or to bookmark this article for further reading, click here.
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.
House Mortgage Refinance Specific links
House Mortgage Refinance News
Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance - MarketWatch (press release)
 International Business Times | Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance MarketWatch (press release) WASHINGTON, DC, May 24, 2012 (MARKETWIRE via COMTEX) -- A proposed bill to streamline and align the refinance processes of Fannie Mae and Freddie Mac may soon make it easier for homeowners who are current on their mortgage payments but who have been ... Freddie Mac: 30-year mortgage rate down a tick at 3.78% Record-Low Mortgage Rates - Are They Hurting US Housing Market? Mortgage Rates Remain At Record Lows |
Push intensifies to pass home-loan refinancing bill - The Hill (blog)
 Washington Times | Push intensifies to pass home-loan refinancing bill The Hill (blog) By Vicki Needham - 05/24/12 05:05 PM ET A leading economist says Congress needs to act fast on refinancing legislation to help the most homeowners and give the improving housing market a boost. Mark Zandi, chief economist with Moody's Analytics, ... Real estate industry pushes Senate on refi bill The Truth About Mortgage Refinancing Revealed by Georgia Mortgage Expert HARP 2.0: Good News For Home Owners Who Are Upside Down |
Costco members can now shop for mortgages online - Chicago Tribune
 Chicago Tribune | Costco members can now shop for mortgages online Chicago Tribune Mortgages? Well, not exactly. The company is receiving a fair amount of publicity for the rollout on its website of a home purchase and refinancing mortgage product for members. But technically it's not Costco's program. It's an online mortgage ... |
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 That said, low mortgage rates have proved incredibly valuable to existing homeowners who are interested in getting new mortgages that will either lower their monthly payments or allow them to pay off their home at a faster pace. Mortgage refinance is a ... Mortgage comparison-shopping: How to read good faith estimate Mortgage applications up on refi demand: MBA No Drop in Refinancing Expected |
Real: FHA streamline refinance gets cheaper - The Republic
Real: FHA streamline refinance gets cheaper The Republic The government is about to make refinancing FHA mortgages more affordable -- and potentially easier -- for hundreds of thousands of homeowners. — The Federal Housing Administration will reduce mortgage fees significantly for borrowers who qualify for ... FHA Streamline Refinance Set To Spur Refinance Boom |