Changing the terms of your current mortgage.

Quite often there two things that help you and your lender what loan is right for you. For instance, if you have a large sum of cash to put down on the refinanced mortgage, you may go for a 15 year mortgage with a nicer percentage rate, and therefore pay much less interest. Buyers who are short on cash though will often need a longer term home mortgage, with closing costs calculated into the payments so less cash is needed upfront.

To get out of your A.R.M. Loan

You thought you signed in for a deal when the ARM rate was way lower then average fixed rate loans, but you know better know. The moment you sign that ARM mortgage, that interest rate can skyrocket at anytime, leaving you with a huge condo or home mortgage to pay every month.

Just to save money every month on your mortgage payment

Rule of thumb for refinancing is to do it when the rate you can get is 2%-3% lower then the rate you are paying now. That is enough to cover the closing costs and save you cash every month on mortgage payments. With competition all over these days, mortgage lenders are very competitive with each other and often someone with good credit can get a really good rate if they look around a little bit.

To lower other debts you have.

You can refinance now at a much lower rate then credit cards, other other non mortgage debts apr is. By doing this you are freeing up more cash every month with an average 10% savings just by paying a lower financing rate.

-M Petrone
Refinancing FAQ & Advice

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