The Mortgage Refinancing Boom
Article by Floyd Starz
As mortgage interest rates continue to increase, mortgage refinancing such as second mortgages and reverse mortgages have become increasingly popular among homeowners. Home Mortgage Refinancing is an extension and/or increase in the amount of an outstanding loan on a home. Mortgage refinancing consists of the complete payment of an outstanding loan with the proceeds from a new one. New home loan mortgages can be the same amount or more than the original loan amount. To decide whether or not this is worthwhile, the savings in interest should be weighed against the fees associated with the refinancing your home loan mortgages. PersonalHomeLoanMortgages.com provides the best mortgage refinancing options with the lowest rates available. Mortgage Refinancing is an excellent option for homeowners who have built equity in their homes and are looking to consolidate debts, invest in home improvement or simply want to free up cash.
Second mortgages are a type of mortgage refinancing that allow you to acquire a second loan on your home or property in addition to your first home loan. Second Mortgages are great ways to pull cash out of your home with minimal monthly interest payments. Due to the high risk associated with second home mortgages, lenders usually charge a higher interest rate compared to the first mortgage as well as a higher percentage of the loan in lender fees. Second Mortgages vary in length depending on the type of home loan you have (fixed rate or adjustable rate mortgage), as well as the type mortgage company you are dealing with. In general, a second mortgage can last as a little as 1 year or can extend up until 20 years.
Reverse mortgages are loans that allow homeowners to transfer some of their home equity into cash. In contrast to traditional home loan mortgages, reverse mortgages do not require borrowers to repay their home loan until the homeowner no longer lives primarily at that residence, although he or she stills owns the residence. Furthermore, the fact that reverse mortgages are tax deductible makes them an attractive mortgage refinancing option. Reverse mortgages are an optimal for solution for a retiree looking to leverage the equity in their home. Remember, making a smart loan decision can help save you tens of thousands of dollars over the lifetime of your loan.
About the Author
Floyd Starz is an Editor for DataBanq Inc.