Homeowners in general are feeling the affects of the collapse of the housing market. Whether you have a fixed rate or an APR (Adjustable rate mortgage), odds are that your homes value has been hurt by the current housing market. The question then is what to do about it? Luckily, mortgage rates are at an all time low across most of the country which makes a lot of homeowners the perfect candidates to refinance their mortgage. Most experts agree that refinancing into a new mortgage with a rate that is just 1% lower than yours, hopefully more, that you can save thousands of dollars over the course of your loan.

Due to the harsh economic times, the Federal Government, offered banks loans at near 0% interest rates. Hundreds of billions of dollars we're loaned to banks for next to nothing to stimulate the economy. Fortunately, as a side effect, mortgage rates have steadily declined month after month as this money makes its way around the country and into actual peoples pockets. Leaving right now an amazing time to refinance a home mortgage and almost guarantee that you will be getting the best rates ever. If you are still paying monthly mortgage payments, you should definitely look into refinancing. This can save you hundreds of dollars per month, and thousands of dollars in total savings.

Homeowners like you can use the internet to research the potential savings of a mortgage refinance. You should research any potential lender, their rates, general terms, customer service, and better business bureau record. You can also use an online mortgage calculator to get a rough idea about how much you tend to save through refinancing. You can easily get an estimate for different lengths, terms, monthly payments, all through most lenders sites.

Who should refinance then?
Well if your credit has stayed the same or improved since you bought your home, you probably stand to save a lot through a home mortgage refinance. Even if your credit has gone down sine your home purchase, with mortgage rates at record lows, you most likely will save a lot of money. If you happen to be in an ARM loan, than you should for sure refinance into a stable fixed rate mortgage. With this mortgage your monthly payments will stay the same regardless of the market conditions. This is one of the best reasons people have to refinance.

This all sounds great, but be careful. Make sure you do proper research on any potential lenders. You should start with the lender you currently have, then take the quote you get from them and shop it around to other potential mortgage lenders. When you bring in an actual quote on paper to another lender, they will often match or beat the offer you have. Ask lenders any question that comes up. Check their customer service to make sure you get a good, quick, response from the mortgage company. Always remember to account for any closing costs or associated fees. These fees usually add up to thousands of dollars and should not be forgotten about. Try to pay all of these fees, or at least as much as you can, up front. By paying upfront, you avoid paying interest on these closing costs every month. Do not be in a rush to do anything as many lenders prey on people looking to refinance for an “emergency”.
-M Petrone

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