Deciding whether to Grab or Forgo Mortgage Refinancing
Article by Rob K. Blake
With millions of American homeowners facing foreclosure, it is unfortunate that not all of them are aware of what options are laid out for them. This is precisely the reason why you need to be aware of what else you can do if you are facing a foreclosure. Or, if you think that your existing monthly mortgage payments are a bit too much – what you can you do to make adjustments and lower the rates?
Mortgage Financing Help Offered by the Government
The good news for homeowners is that help is available. Since the housing meltdown has occurred, both the federal and state-level governments have enforced laws and introduced incentives and programs that will help keep the homeowners’ heads above water.
For example, homeowners who still have a debt of up to 25% more than the value of their home can seek the help of Fannie Mae and Freddie Mac. These two government agencies were authorized to help homeowners with mortgage refinancing. As a result of the depreciating value of residential real estate properties across the nation, such programs for mortgage refinancing will take off a huge financial load off the shoulders of homeowners.
What Every Homeowner Needs to Know when Considering Mortgage Refinance
As a homeowner, what does the help offered by the government mean to you? When you get the right refinancing lender, you can actually skip up to two mortgage payments. You can also lower down the interest rate that you were paying on your previous mortgage loan – which means more money saved for other more important items in your household budget.
To give you more of an idea about whether a mortgage refinancing plan will work for you or not, here are a few things that you need to think about:
– If you need a significant amount of cash for a major purchase or an emergency household expense, you can use mortgage refinancing as the solution.
– You can use mortgage refinancing as a way to turn your home equity balance to zero and keep your equity line free for the succeeding years.
– A mortgage refinancing loan can be used to consolidate two mortgages into one – which has a lower interest rate.
– You can use the mortgage refinancing plan to reduce the loan term length from 30 or 40 years to 15 or 20 years.
– You can use the mortgage refinancing plan to ‘escape’ from having an adjustable rate mortgage to one which has a lower, fixed rate.
A Final Word about Mortgage Refinancing
If any of the aforementioned conditions apply to you, then you should seriously consider applying for a mortgage refinancing plan. The one thing that you need to keep in mind, though, is that it is important for you to look for the right lender.
Make sure that the mortgage refinancing lender is someone who understands the local real estate market in your area. Make a comparison of the rates, terms and conditions involved – so that you can rest assured that it will be beneficial to you as the borrower.
As you can see, information is your number one ally if you are making a major financial decision like this. Nothing beats the feeling of knowing that you have laid down all your choices on the table – and you have come up with the best decision that will benefit all parties concerned, especially if it is your finances which are at stake.
About the Author
Rob K. Blake, mortgage expert and author, educates mortgage shoppers on finding local providers by state like Idaho Mortgage Brokers and Lenders and provides reviews of national companies like America’s Servicing Company.