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3 Reasons To Refinance Now

Updated on August 4, 2009

Mortgage interest rates are at historically low levels. As a homeowner you should thing about taking advantage of these rates before they start to go up again. While the rates are incredibly low right now, they certainly won't stay this low forever. Unfortunately, many homeowners will put off getting a refinance and will miss out on the potential savings.

There are many reasons to refinance your mortgage. Reducing the interest rate on your mortgage can seriously lower your monthly payment. If you bought your current home with bad credit and your credit has improved, you should be able to get a much lower rate today. Actually, having a mortgage and paying it on time is an excellent way to bring your credit score up a lot. So, if you received a poor credit mortgage, make efforts to better your credit, and then refinance for a low rate.

Back when rates were higher than they are now, many homeowners chose to get ARM (adjustable rate mortgages) because the rates were a lot lower. While it's true that people who have adjustable rate mortgages are also benefiting from today's lower rates, the savings they are experiencing are not guaranteed to be around forever. If (when) rates start to climb again, so will the rates on those ARM loans. And so will their monthly payments. To avoid your mortgage payments going up again, refinance to a low, fixed rate mortgage where your payments will stay the same for the life of the loan no matter what happens to interest rates.

Ease Family Finances by Refinancing

Obama Plan Allows for Higher LTV Refi's

Many people would like to take advantage of today's lower interest rates but feel that they are not able to because the value of their home has dropped so much in this market, causing them to be upside down on their mortgage.  However, with the Obama plan, Making Home Affordable, you may be able to qualify for a refinance loan with a Loan to Value of up to 125%!  You really should contact your mortgage company (the people you send your monthly payment to), to see if you qualify for this refinancing program.

Cash Out Refinancing

Take Advantage of Cash-Out Refinancing: Cash-out refinancing is a particularly interesting feature to refinancing your present home loan. With a cash-out, you can not only reduce your interest rate, but you can borrow some of the equity in your home. You'll get a chunk of money when you close your loan. Once you get the money you can use it for what you want, from paying off high interest credit card debt or student loans, or going back to school or sending a child to school, or for a home remodeling project, or even to take a long overdue vacation.If you are looking for more information about Portland Home Loans, you'll find some good information and helpful tips at this website: Portland Refinance Help


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      carterdodd09 8 years ago

      I saw that video (or one very similar) a while ago. It's amazing to think what $1 trillion dollars really is. Hard to wrap your head around it, but that sure helps with putting it in perspective. Thanks!