Do you have bad credit? Are you wondering how hard a home mortgage refinance could be? It may be a surprise to you that there are a great deal of lenders who specialize in home and condo mortgage refinancing for people with less than perfect credit. Of these companies, most (I would not deal with a lender who did not have one) have a section on their site dedicated to refinancing a mortgage for people in your exact situation looking to refinance.
Getting A Better Rate
A mortgage refinance can secure you a better loan rate for the remainder of your home or condo mortgage. It should save you a lot of money over the course of the loan, especially for the great many people who bought a home or condo with a adjustable rate mortgage. An adjustable mortgage means that the interest rates on your condo or home loan will change will the market conditions, and generally once they go up they do not go back down. The interest rate on a home or condo loan with this type of mortgage can fluctuate monthly with no notice. Plenty of homeowners unfortunately have gotten themselves into an adjustable mortgage which has been going up and up in the past few years, with no sign of dropping again. Due to this, a lot of home and condo owners have been forced into foreclosure due to their rates almost doubling their monthly mortgage payments and their take home income just cannot keep up.
Cut Your Monthly Mortgage Payments, Or Extend The Length Of The Home Or Condo Loan
Typically, refinancing your house or condo will get you a better interest rate and you can also choose to extend the mortgage length on your house or condo. So if you had 15 years left on your mortgage, you could extend that by 5 or 10 years, sometimes more, if you desire lower monthly payments in exchange for more of them. This will allow you to keep extra cash on you every month to use as you wish.
Borrowing Money Against Your Home
Refinancing gives you te opportunity to establish new lines of credit with the mortgage lender you have chosen. This money can be used for repairs of your home or condo, remodeling, furniture, appliances, or anything else you want. Generally though it is advised to invest some into your home or condo to increase its value. Although, many people pay off high interest credit card debts, auto loans, student loans, or other personal loans which carry a higher interest rate than the mortgage. This will save you money by not having to pay super high interest rates on other things.
Only Borrow What You Need To
Be sure to know exactly how much you need if this is your reason to refinance. Whatever you borrow against your home will have to be paid back, with interest, and should be accounted for. You will pay a lot of interest for a lot of years on what you are borrowing so make sure it is worth it, and needed. By borrowing only what is needed, you avoid paying interest on cash that would have been better saved, and you will have a lower monthly payment the less you borrow.
-M Petrone


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