Should I Refinance My Home Mortgage?
- Date: 2007-10-03 - Word Count: 507
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Consider refinancing your home mortgage to get the equity out of your home. Here are a few good reasons why:
Lowering your mortgage rate and interest costs
Improvements to your home
Acquiring funds for investments
Credit cards and other debts can be paid off
Sending your children to college
If you have an adjustable-rate mortgage (ARM) that keeps rising, a refinanced home mortgage loan can "save your life". Obtaining cash for the equity in your home can help in many ways.
Equity in your home means, that all the years you have been making monthly payments, including the down payment and your first initial payment, equals the value of your home that has already been paid for.
You can use the built up equity (the investment in your home) to acquire a refinance home mortgage loan to get cash out.
However, like most other loans, the refinance loan which includes the monthly principal and interest payments that must be repaid, according to the amortization schedule.
What Makes Refinancing A Home Mortgage Different?
The big difference is the low interest rate received on the loan which in turn, allows you to take advantage of the great rates so that other debts, like credit cards and other consumer loans, can be eliminated.
An important reason to refinance your home mortgage is that it turns the equity you have in your home to ready cash, to do with as you wish.
If You Decide To Refinance - Ask These 10 Questions First!
Do yourself a favor and compare loan plans before you make the decision to refinance. Comparison shop by contacting lenders both online and off line, and make sure you ask them to explain the loan plans that are right for your set of circumstances.
Remember, if you don't understand the loan terms and conditions, ask questions! Knowing the amount of the monthly payment or the interest rate is not enough. Make sure you include the following questions:
1. What are the monthly payments?
2. What is the yearly percentage rate? (APR)
3. What is the cost to borrow? (Refinancing home loan rate)
4. Will the loan rate change? (When? How often? How much?)
5. Fees, how much are they?
6. What will you have to pay in points?
7. If the application is turned down are the fees refundable?
8. How many years to repay the loan?
9. Total closing costs?
10. Is the refinance loan affordable?
Lenders are anxious for your business. If you let them know you are shopping for the best deal, they will be glad to compete for your business. Be sure to negotiate the lower fees, points and interest rate. Make them aware that you mean business and that you are not afraid to walk away if it is not want you want.
If your decision is to refinance, there are many full-service refinance loan websites you can visit that have great loan plans. There are some that offer free comparison quotes quickly and easily, with low or no closing costs.
Whether your decision is to refinance your home mortgage online or your local financial institution, remember to do your homework, so that you will find the best deal for you and your loved ones.
Lowering your mortgage rate and interest costs
Improvements to your home
Acquiring funds for investments
Credit cards and other debts can be paid off
Sending your children to college
If you have an adjustable-rate mortgage (ARM) that keeps rising, a refinanced home mortgage loan can "save your life". Obtaining cash for the equity in your home can help in many ways.
Equity in your home means, that all the years you have been making monthly payments, including the down payment and your first initial payment, equals the value of your home that has already been paid for.
You can use the built up equity (the investment in your home) to acquire a refinance home mortgage loan to get cash out.
However, like most other loans, the refinance loan which includes the monthly principal and interest payments that must be repaid, according to the amortization schedule.
What Makes Refinancing A Home Mortgage Different?
The big difference is the low interest rate received on the loan which in turn, allows you to take advantage of the great rates so that other debts, like credit cards and other consumer loans, can be eliminated.
An important reason to refinance your home mortgage is that it turns the equity you have in your home to ready cash, to do with as you wish.
If You Decide To Refinance - Ask These 10 Questions First!
Do yourself a favor and compare loan plans before you make the decision to refinance. Comparison shop by contacting lenders both online and off line, and make sure you ask them to explain the loan plans that are right for your set of circumstances.
Remember, if you don't understand the loan terms and conditions, ask questions! Knowing the amount of the monthly payment or the interest rate is not enough. Make sure you include the following questions:
1. What are the monthly payments?
2. What is the yearly percentage rate? (APR)
3. What is the cost to borrow? (Refinancing home loan rate)
4. Will the loan rate change? (When? How often? How much?)
5. Fees, how much are they?
6. What will you have to pay in points?
7. If the application is turned down are the fees refundable?
8. How many years to repay the loan?
9. Total closing costs?
10. Is the refinance loan affordable?
Lenders are anxious for your business. If you let them know you are shopping for the best deal, they will be glad to compete for your business. Be sure to negotiate the lower fees, points and interest rate. Make them aware that you mean business and that you are not afraid to walk away if it is not want you want.
If your decision is to refinance, there are many full-service refinance loan websites you can visit that have great loan plans. There are some that offer free comparison quotes quickly and easily, with low or no closing costs.
Whether your decision is to refinance your home mortgage online or your local financial institution, remember to do your homework, so that you will find the best deal for you and your loved ones.
Related Tags: real estate, business, debt consolidation, mortgages, home repair, financial, refinance, home mortgage refinance, mortgage lenders, home equity refinance, bad credit mortgage refinancing, mortgage refinancing rate, refinancing calculator, online refinancing
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