Mortgage Refinance

If you haven't refinanced your high interest mortgage, you should!
RVers can use loan savings to support their yearly camping expenses

Do you have a high interest mortgage? If so, you really need to check into lowering your interest rate and get a mortgage loan that will save you thousands of dollars over the life of your loan. A new home loan today can allow you to do things you want or need to do with the money you save.

If you refinance a high interest loan now, you can offset high gas prices and other cost of living increases. If you work carefully and lower your interest rate without increasing your indebtedness, you will have money to invest in other things. To afford things today, you need to increase your income or cut your costs. Refinancing is an excellent way to cut your costs.

Maybe refinancing savings would be all you need to purchase a new or newer RV. Maybe it could be the difference in making the trips you would like this year and next. By lowering your house payments you may just be able to afford things you thought were out of reach.

A mortgage refinance makes financial sense. You owe it to yourself to look into it before rates climb higher and higher. If you could use thousands of extra dollars over the next few years, look into a mortgage loan. You can begin investigating online at various places. It is free to fill out a form

Even if your credit is less than perfect, it is possible your could still save money. Look into it: Again, a search can find lenders who can save you money.

Should you refinance? This may answer some questions that may help you decide. If you do refinance, the process will remind you of what you went through in obtaining the original mortgage. That's because, in reality, refinancing a mortgage is simply taking out a new mortgage.

Would Refinancing Be Worth It? Check it out. Do not wait. Rates go up quickly, so any time they are down, take advanage of lower rates.

Refinancing can be worthwhile, but it does not make good financial sense for everyone. A general role of thumb is that refinancing becomes worth your while if the current interest rate on your mortgage is at least 2 percentage points higher than the prevailing market rate. This figure is generally accepted as the safe margin when balancing the costs of refinancing a mortgage against the savings.

There are other considerations, too, such as how long you plan to stay in the house. Most sources say that it takes at least three years to realize fully the savings from a lower interest rate, given the costs of the refinancing. Depending on your loan amount and the particular circumstances, however, you might choose to refinance a loan that is only 1.5 percentage points higher than the current rate. You may even find you could recoup the refinancing costs in a shorter time.

Refinancing can be a good idea for homeowners who:
· Want to get out of a high interest rate loan to take advantage of lower rates.
· Want to build up equity more quickly by converting to a loan with a shorter term.
· Want to draw on the equity built up in their house to get cash for a major purchase or for their children's education.
· Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.

I have one caution. Be very careful of interest only adjustable rate loans or any ARM (adjustable rate mortgage) In 1995 I was downsized and had a hard time finding work. In 1996 I lost my house to foreclosure because my $650 a month ARM loan had risen to over $900 due to increasing interest rates. I might have held on at $650, but that extra $300 a month was beyond my ability to meet. ARMs may make sense for some, but again, BE VERY CAREFUL!

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The information contained on this website is intended to help you ask the right questions when considering a possible refinancing of your loan. It is not a replacement for professional advice. Talk with mortgage lenders, real estate agents, attorneys, and other advisors about lending practices, mortgage instruments, and your own interests before you commit to any specific loan.