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The Basics of Refinancing Your Home Mortgage

What to Know Before Refinance Your Home Mortgage

The Latest News in Home Mortgage Refinancing

 

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The Basics of Refinancing Your Home Mortgage

Your home is your largest, most valuable financial asset. It can take years to pay off the mortgage on that asset. To reduce your monthly payment or the amount of interest you pay over the long run, you may want to consider refinancing that loan. Home loan interest rates are at record levels so this is a great time to look into refinancing your mortgage.

When refinancing, you essentially pay off your existing mortgage and create a new one. Since you are creating a new loan when you refinance, you get a new loan with new terms. There's a variety of mortgage terms you can negotiate. These include interest rates, duration of the loan and the amount of the loan.

Interest rates: Many people choose to refinance their mortgages when interest rates have dropped significantly to make it financially beneficial to refinance the mortgage. By refinancing at a lower interest rate, you can lower your monthly mortgage payments.

Another term which can be negotiated on your home loan is the term or duration of the loan. If you previously had a 10-year loan, it's possible to get a new mortgage with a 30-year duration. This is a good option if you're consolidating debt into the new mortgage amount. Beware that on a mortgage with a shorter duration that you may be paying a higher monthly mortgage rate. Contrarily, a longer term mortgage will most likely have a lower monthly payment.

Finally, you may also be able to negotiate the amount of the loan. If your home has held its value or increased in value, you can roll another loan or other debt into your home mortgage amount. That way, you pay off both loans with one low monthly payment. With interest rates as low as they are, this is a very desirable strategy. Credit card debts, car and student loans are debt items that can be rolled into a new mortgage.

Also, don't forget to shop interest rates before starting the paperwork. Banks vary on their interest rates, closing costs and fees. Some banks are actually raising these rates and costs in an effort to increase their profits and hold down the amount of loans they are processing. Go online and research rates among lenders. Not only can you look for the best deal, but you can use this information to negotiate lowers costs.

Be careful not to get addicted to refinancing. Some people refinance every time interest rates take a dip. While it may seem like you are saving money, you are also racking up closing costs every time you create a new loan. Over the long run, refinancing multiple times may actually cost you money.

Weekly mortgage applications rise as rates briefly fall back

according to the Mortgage Bankers Association's seasonally adjusted report. Volume remains 8.5 percent below a year ago, when rates were lower. Refinance volume jumped 6 percent for the week, marking the highest level in a month. Homeowners took advantage ...

Published:  Mon, 20 Nov 2017 05:27:00 GMT



Mortgage rates rise but haven't moved much in the past year

according to the latest data from the Mortgage Bankers Association. The market composite index - a measure of total loan application volume - increased 3.1 percent. The refinance index rose 6 percent, while the purchase index was flat, inching up 0.4 ...

Published:  Thu, 16 Nov 2017 06:34:00 GMT



Holden Lewis: 5 ways and reasons to refinance your mortgage

Though mortgage rates have rebounded some from the lows seen in 2016, they remain very attractive. Many homeowners are refinancing before rates go higher. Yes, you can save money by doing a simple refinance in which you swap a lower rate for your existing ...

Published:  Sat, 18 Nov 2017 19:10:00 GMT



Some mortgage, business loans may need updating with looming bank rate phaseout

A: The London Interbank Offered Rate (LIBOR) is the daily calculation of an average of estimated interest rates that a panel of around 20 banks calculate they'd be charged to borrow from other banks. LIBOR serves as the primary reference interest rate that ...

Published:  Thu, 16 Nov 2017 02:00:00 GMT



MBA: Mortgage applications inch higher as refinance demand grows

Mortgage applications ticked up 3.1% from one week earlier, as refinance demand increased, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending Nov. 10. The MBA noted that this week's results ...

Published:  Wed, 15 Nov 2017 04:24:00 GMT



Mortgage Insurance Fund Circling the Drain - Better Loans to Blame

FHA's Mortgage Insurance Fund (MIF) lost ground this past year, which is bad news for those hoping for a cut in its fees. The Department of Housing and Urban Development (HUD) released results of the statutorily required independent actuarial analysis of ...

Published:  Wed, 15 Nov 2017 10:16:00 GMT



Peer-To-Peer Loans Remind The Cleveland Fed Of An Obscure Historical Episode Known As "˜The Subprime Mortgage Crisis'

Remember when everyone was wondering what JPMorgan and Citi would do to defend their market share against the rising tide of peer-to-peer lenders, whose big-data credit metrics and cost-saving disintermediation would prove an existential challenge to ...

Published:  Thu, 09 Nov 2017 16:13:00 GMT



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