Home Mortgage Refinancing Is Hot!
Article by 12 Day Refi
Do you know what to look for when gathering mortgage refinance information? Fast turn-around times, excellent customer service, and reliable interest rates and fees top the list of what’s important to many people. But when you’re busy searching local lending institutions and internet websites for mortgage refinance information, it’s not always possible to know if you’re going to get what you’re promised until you are deep into the process.
That’s why you need to work with a refinance company with a proven track record; one that pays attention to your needs and that won’t give you the run-around. To increase your chances of finding such a refinancing company, it’s a good idea to be prepared.
Why are you refinancing
Everyone has a different reason for refinancing. The majority choose to refinance their mortgages because it’s a way of securing more favorable mortgage terms. Lowering an interest rate even by one point can save thousands of dollars in interest over the life of the loan. And so can refinancing into a shorter term mortgage, such as from a 30-year fixed down to a 10- or even 15-year fixed mortgage.
Those with significant debt turn to home equity loans and mortgage refinancing as a low-cost way to pay off debt. Known also as a debt consolidation loan, it makes repaying debt more manageable and less stressful.
Right now, what’s driving much of the mortgage refinancing business is that many adjustable rate mortgages are entering an adjustment phase. Over the last 5 years, many homebuyers opted for potentially riskier types of home loans designed more for the short-term such as adjustable rate mortgages and interest-only options. Holders of these mortgages are finding themselves in precarious financial predicaments now that the red-hot housing market is cooling and it’s no longer a sellers’ market.
Unable to sell those homes and unload those riskier mortgages, borrowers are finding that their monthly mortgage payments are about to increase by several hundreds of dollars or more now that interest rates are beginning to adjust. They need to refinance now but with home prices in the midst of the “correction” stage, many borrowers have less equity in their homes, making home mortgage refinancing an even trickier process.
Determine whether mortgage refinancing is the right move
Refinancing your home mortgage loan involves many of the same steps you took when you sought financing the first time around. Only this time, it should be a bit easier because you’ve got some experience under your belt. Even so, when you’re refinancing a home mortgage loan, it’s going to be more important than ever to pay close attention to the mortgage refinance information you get from each prospective refinancing specialist. You’ve got to run the numbers to ensure the costs of refinancing don’t outweigh the benefits.
It’ll definitely be to your advantage to check around to see which refinancing company is offering the best deals. And as with the first time around, be sure to get all the mortgage refinance information you are quoted in writing!
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