What Are The Best Reasons To Refinance A Home Loan?
When should we consider refinancing a home loan and for what reasons should we not refinance a home loan?
I would refinance to get a shorter term (30 years down to 15) and a lower interest rate and then use the savings to pay off my mortgage quicker.
I would not refinance to take money out of the "equity" in my home.
If fact, I wouldn't really try to refinance. I would ask my mortgage holder to modify my current mortgage. Every time you refinance you pay closing costs and reset the clock back to 15 or 30 years. Modifying a mortgage only changes the interest rate and subsequent payment. It does not change the duration of the loan and you can not opt to take money out in the transaction.
My mortgage is with a credit union. I just asked to modify the interest rate on my 15 year, 4.875% fixed mortgage, but keep the same payoff date. At no cost, my credit union decreased my mortgage interest rate to 3.625% with a savings of $340 on my monthly payment. To pay off my mortgage even earlier, I will add the monthly savings as additional principle payment each month.
This probably won't work if your mortgage was sold or serviced by a third party.
by Ralph Deeds 7 years ago
I just refinanced my home mortgage today--4% for 15 years. Closing costs around $1,900. This is the lowest interest rate in 50 or so years.
by Shepherd's Lamb 21 months ago
I just want to discuss what's going on in my little head right now and hope to hear from those of you more educated on the subject.I qualified to buy a condo in 2004 (six years ago). I paid $6,000 cash for closing. Two years later I refinanced to get into a fixed interest rate of 5.5%...
by passion dad 7 years ago
can i get a va home loan for a place outside of the usa?yes i like to know if i can get a va loan but buy a house outside of the usa due to my medical condition suffered in the iraq war my doctor told me it would be best for my condition.
by Bob needs help 20 months ago
I am over and under on my home loan.I owe more for my home than what it is worth with an adjustable rate morgage up in June. No one will refinance us because we have no equity in are home. I am tring to get a loan for a new home which is very likely. Is that a good idea I will have to walk away...
by shirleycarter 5 years ago
can i get out of this car loan with 19% interst rate
by Damodar Bashyal 6 years ago
Will you choose variable or fixed home loan?At this time of financial crisis and interest rate on the decline, would you lock it for 5.75% or go variable for 5.95%?
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