TopConsumerReviews.com is a world-leading consumer product review site. We provide detailed reviews and ratings for thousands of products and services.
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.
Top Consumer Reviews Articles
TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.
Mortgage Refinance In The News
The number of Australian households under mortgage stress continues to rise and is now estimated to make up about a third of owner occupiers with home loans. There are now more than 1,008,000 househol...
Published: Sun, 18 Nov 2018 16:35:00 GMT
"Mortgage application activity rebounded the week following the Columbus Day holiday, but both purchase and refinance levels remained lower than where they were two weeks ago," said Joel Kan, MBA AVP ...
Published: Wed, 24 Oct 2018 05:48:00 GMT
Have you got a loan that is no longer working for you Maybe your credit has improved, and you can get a better rate. Refinancing your mortgage can help you save money (or at least lower your payments ...
Published: Sun, 26 Aug 2018 16:22:00 GMT
In a perfect world, we'd all be able to get affordable mortgages at rock-bottom interest rates when buying a home. But we don't live in a perfect world, and sometimes the only mortgage you can get is ...
Published: Mon, 24 Sep 2018 19:32:00 GMT
NEW YORK (Reuters) - With mortgage applications falling to their lowest since late-2014, the U.S. home lending industry is facing a major overhaul in how it works and manages staffing levels. Call-cen...
Published: Thu, 18 Oct 2018 05:17:00 GMT
Since about three years ago, leading Hong Kong property developers have been offering mortgage loans for homebuyers to counter tighter mortgage rules that banks have to observe. The Hong Kong Monetary ...
Published: Wed, 10 Oct 2018 02:01:00 GMT
- View Full Site -
Reproduction in whole or in part in any form without the express written consent of TopConsumerReviews.com, LLC is strictly prohibited.