Welcome to Refinancing Guide
Life Time Refinance Article
. For a permanent link or to bookmark this article for further reading, click here.
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.
Life Time Refinance Specific links
Life Time Refinance News
School district refinances bonds - Contra Costa Times
School district refinances bonds Contra Costa Times By Damin Esper The Albany Unified School District has refinanced outstanding bonds to reduce interest rates and save taxpayers almost $2 million over the life of the securities. "We're very pleased," Superintendent Marla Stephenson said. |
When Does It Make Sense to Refinance? - MarketWatch (press release)
 Brisbane Times | When Does It Make Sense to Refinance? MarketWatch (press release) The big question: When is the right time to refinance? "Many borrowers have the opportunity to reduce mortgage payments at a time when expenses such as gas and healthcare are rising," said Ray Brousseau, executive vice president of Carrington Mortgage ... The Case for Refinancing The Truth About Mortgage Refinancing Revealed by Kansas and Missouri Mortgage ... Fixed rate doesn't outsmart the market |
Candlelight Dinners And 9 Other Ways To Save By Spending More - Business Insider
 Business Insider | Candlelight Dinners And 9 Other Ways To Save By Spending More Business Insider With average 30-year and 15-year fixed mortgage rates at record lows, homeowners should consider whether now is a good time to refinance. Freddie Mac said the 30-year loan rate had dipped to 3.79 percent as of May 18, the lowest since long-term ... |
LendingTree Analysis Indicates Greater Savings with Adjustable-Rate Mortgages ... - MarketWatch (press release)
LendingTree Analysis Indicates Greater Savings with Adjustable-Rate Mortgages ... MarketWatch (press release) From January to May 2012, the proportion of borrowers refinancing to a 30-year fixed-rate loan has increased about 5 percent year over year, 6 percent for purchase mortgages. Compared to the same time period last year, LendingTree has seen over a 12 ... |
TEXT-S&P rates Solveig Gas Norway - Reuters
TEXT-S&P rates Solveig Gas Norway Reuters We consider that the contractual requirement to maintain adequate liquidity through the life of the transaction is somewhat vague. Although, in our view, future refinancing will address this issue, the amounts and terms of future facilities cannot be ... |