March 23, 2018

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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.

UBS pays $230M for faulty mortgage loans

Big banks continue to fork over fines for gambling on mortgage-backed securities in the years leading up to the 2008 financial crisis. UBS is the latest financial firm to reach a settlement with New York. To make up for the company's packaging and selling ...

Published:  Thu, 22 Mar 2018 11:27:00 GMT

Mortgage rates recommence their upward trajectory

The refinance index fell 5 percent, while the purchase index ticked up 1 percent. The refinance share of mortgage activity accounted for 38.5 percent of all applications. "The refinance share of applications decreased to 38.5 percent, its lowest level ...

Published:  Thu, 22 Mar 2018 07:38:00 GMT

Mortgage rates edge up even as trade war worries loom ahead

Rates for home loans ticked up as global trade concerns countered investors' belief that the Federal Reserve was likely to raise short-term interest rates. The 30-year fixed-rate mortgage averaged 4.45% during the week ending March 22, according to ...

Published:  Thu, 22 Mar 2018 07:51:00 GMT

Mortgage refinances fall even further despite first rate drop of 2018

The refinance share of mortgage applications fell to just 38.5 percent, the lowest since September 2008. Mortgage applications to purchase a home increased 1 percent for the week and were 6 percent higher than a year ago. Purchase volume is less reactive ...

Published:  Wed, 21 Mar 2018 04:03:00 GMT

FHA Updates Reverse Mortgage Calculator to Reflect Refinance Changes

The Federal Housing Administration this week released a new version of its reverse mortgage software to account for recent changes to the way it handles loan refinances. Version 2.5 of the Home Equity Conversion Mortgage Calculation Software (Calculator ...

Published:  Thu, 22 Mar 2018 12:45:00 GMT

Should this reverse mortgage borrower modify or refinance

Jane took out a HECM reverse mortgage on her house five years ago when she became 62. Because she was still employed at the time, she elected to take a credit line, which she has used sparingly ever since. She has now quit her job and wants to receive the ...

Published:  Fri, 09 Mar 2018 22:00:00 GMT

Blackstone Mortgage Trust Announces Pricing Of Public Offering Of Convertible Senior Notes

The Company intends to use the net proceeds from the offering to originate and purchase additional commercial mortgage loans and other target assets and investments consistent with its investment strategies and investment guidelines, and for working ...

Published:  Thu, 22 Mar 2018 19:15:00 GMT

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