Welcome to Refinancing Guide
Refinance Your Home 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.
Refinance Your Home Specific links
Refinance Your Home News
Don't HARP on it, refinance program too good to pass up - Cleveland Jewish News
Don't HARP on it, refinance program too good to pass up Cleveland Jewish News Do you owe more on your home than it is worth and find yourself unable to refinance your high interest rate? The updated Making Home Affordable Refinance Program is really having a positive impact on homeowner's abilities to refinance loans when they ... Northen Virginia Refinancing Expert Explains New Home Affordable Refinance Program |
Real: FHA streamline refinance gets cheaper - The Republic
Real: FHA streamline refinance gets cheaper The Republic The lower fees go into effect June 11 and will be available to borrowers who refinance loans that were endorsed by the FHA before June 2009. "If you had your loan endorsed prior to that, this is your chance to save money with a streamline refi," says ... FHA Streamline Refinance Set To Spur Refinance Boom |
Save Thousands On Your Mortgage: When You Should Refinance - News Channel 7
Save Thousands On Your Mortgage: When You Should Refinance News Channel 7 (more) When Dwayne Hamm thinks back to when he bought his Spartanburg home 9 years ago, he's amazed by how much times have changed for homeowners. "There's a lot of problems with people who can't afford their home and I don't want to fall in that ... |
Refinance your FHA Mortgage regardless of your appraised value or loan amount. - Examiner.com
 New Zealand Herald | Refinance your FHA Mortgage regardless of your appraised value or loan amount. Examiner.com The Federal government has recently changed its guidelines on refinancing. Homeowners who are “underwater” in regards to value in their homes can now also take advantage some of the lowest rates in 60 years, regardless of your appraised value or loan ... BNC National Bank (Lincoln Location) When Does It Make Sense to Refinance? The Case for Refinancing |
Menendez-Boxer refinance plan will entrench government housing - Daily Caller
Menendez-Boxer refinance plan will entrench government housing Daily Caller ... country — your taxpayer money on the line for trillions of dollars lent to individuals and families. This dominance is most notable in home mortgage lending, where taxpayers now stand behind 88% of all new mortgages in America. This is no accident. |