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Refinance Mortgage Rates Article
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Refinancing
Most of us find ourselves taking out a loan at one time or another in our lives, whether it's for a home, a car or personal reasons.
At the time we take out the loan, it's usually set for some many months with monthly payments due on a certain day. The amount of the monthly payments is based on the current interest rate we're charged on the principal balance we borrow.
Often, during the term of the loan, we find ourselves refinancing the loan for one reason or another. The main reason why people do refinancing is usually for a better interest rate, specifically if the loan is a home mortgage.
With a home mortgage loan, refinancing for a lower interest rate can make a substantial difference in the total balance of our loan.
Lower interest rates are the most common reason for refinancing mortgage loans, but they are not the only reason for refinancing. When banks lend money for the purchase of a home, they will usually only borrow up to 80% of the value of the home (known as equity).
For instance, if a home is valued at $100,000, the maximum amount the bank will borrow is $80,000. As time passes, the balance of the loan decreases while the equity of the home increases. Often home owners need extra cash for remodeling or other personal reasons so they choose refinancing by using the equity of their home as collateral.
An example of this method of refinancing would be that same $100,000 home. After a couple of years, the loan balance may be down to $70,000 while the value of the home may have increased to $120,000.
In this scenario, the bank will borrow up to 80% of the home's value, which would be $96,000. This amount is $26,000 more than the borrower owes on his mortgage so they are eligible for $26,000 cash out. Refinancing of home mortgage loans is very popular for this reason.
While home mortgage loans are the loans that are most often refinanced, refinancing is not limited to just mortgages. Many borrowers take out loans when they purchase a car.
A lot of people like trading their cars off in a couple of years to get a newer model. Many times the first car loan is not paid off, so they do refinancing of their first car loan and add it to the new car loan. Another reason is for additional cash for personal reasons.
As long as the collateral of the loan (car, etc.) is worth more than the balance of the loan, banks are more than happy to help with refinancing, if the payments have been made on time, of course.
Refinance Mortgage Rates Specific links
Refinance Mortgage Rates 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) NAR supports the "Responsible Homeowner Refinancing Act" because it offers relief to responsible homeowners who have good credit and consistently meet their mortgage obligations, but who have been unable to refinance into lower interest rates because ... Freddie Mac: 30-year mortgage rate down a tick at 3.78% Record-Low Mortgage Rates - Are They Hurting US Housing Market? Refinancing homeowners overwhelmingly choose fixed loans |
Time to Refinance While Mortgage Rates are So Low - FreeRateUpdate.com
 CNBC.com | Time to Refinance While Mortgage Rates are So Low FreeRateUpdate.com After taking a look at these details, many borrowers are going to find that it is time to refinance while mortgage rates are so low even if they refinanced several years ago. For those with adjustable mortgage rates, it is the perfect time to switch to ... Record-low mortgage rates spur refinancing MBA Weekly Survey: Refinance Applications Increase Because of Record Low ... Mortgage Applications Up on Refinancing Rise |
Refinance Applications Increase in U.S. for Third Consecutive Week, Driven by ... - World Property Channel
 Eastern Morning Herald | Refinance Applications Increase in U.S. for Third Consecutive Week, Driven by ... World Property Channel "Mortgage rates again dipped to new record lows in the survey, which spurred more borrowers back into the refinance market. As a result, applications for refinance loans have increased for the third straight week and are at the highest level since ... No Drop in Refinancing Expected Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances Today's Mortgage Rates: Bank of America, Chase and Citibank Refinance Rates ... |
Real estate industry pushes Senate on refi bill - MarketWatch
 Washington Times | Real estate industry pushes Senate on refi bill MarketWatch Appearing before the Senate Banking Committee, Mark Zandi, chief economist and cofounder of Moody's Analytics, said lawmakers must act quickly because “mortgage rates are very low, and this is such a good time to refinance. Push intensifies to pass home-loan refinancing bill HARP 2.0: Good News For Home Owners Who Are Upside Down Don't HARP on it, refinance program too good to pass up |
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 |