Refinancing ones home is easier now than ever before. There are thousands of homeowners who have an adjustable mortgage rate and are now eligible to refinance. Refinancing can save a homeowner thousands of dollars in interest rates and, let them get cash back, or change the length of their home loan as well as many other benefits:

Fixed or Adjustable Rate?
Thousands of American homeowners have agreed to a mortgage loan that has an adjustable interest rate and are now uncertain what the future holds. Those with an adjustable rate are most likely facing ballooned payments because of the interest rate increase and are now having trouble making their monthly payments. The sudden increase in mortgage payments along with the increase in the cost of living, many families find themselves struggling to stay above water. These families are turning to bankruptcy as a solution and some are even facing foreclosure. Although people everywhere are feeling lost and unsure of their next move, refinancing now into a fixed mortgage rate can be the answer you have been looking for this entire time.

An adjustable rate is often lower than the fixed rate that is offered to some and if this is a started home which you plan on moving out of in the next ten years an adjustable rate may be the right choice for your situation. Most mortgages with fixed rates are usually over a thirty year term and an adjustable rate would be best if you don’t plan on staying the full length.

Better Terms and Save Money
Lowering your interest by just ¾ of a percentage point can save you hundreds a month. Refinancing your loan and lowering your interest rate is a great way of freeing up some much needed cash. When refinancing you can renegotiate you mortgage terms and  get a much better deal.

Let’s say that you had signed a fifteen year mortgage originally, it is possible with refinancing to spread your payments out over a longer period of time. Also an interest-only loan may be an option you would like to consider. An interest-only loan will allow you to make payments on the interest only for a period of time with the option of paying on the principle whenever you are able. This is a great option who are in desperate need of some cash for life’s other necessities.

Cash Out Mortgage Refinancing
Refinancing can also be a great way to get access to cash from the equity in your home. Those people that refinance because they need to take out the equity they have built use the cash to pay off debts and improve their credit score. Doing this can save the borrower hundreds of dollars a month.
Deciding to refinance or not depends on many different elements. The length of time you plan on staying in your home, financial goals that you have set and what type of loan you are looking for. It is possible to find a lender online that will be more affordable and offer lower rates than most. Online lenders also make it easier to repay the loan because they offer more options.

-M Petrone

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