Mortgage refinancing will prevent many people from losing their home, or spending more money than they have to. Many people do not understand how they can benefit from refinancing a mortgage and are unaware that mortgage interest rates are near all time lows. Here are some ways that refinancing a home loan can benefit homeowners by saving them money and some tips that people need to know when looking for the right refinance option for their situation.

Right now home loan interest rates are near 5% for a 30 year fixed rate mortgage. These rates are less than half of what interest rates were just a decade ago. Many homeowners are paying much more than 5% and would see huge savings just by reduction in interest payments if they were to refinance now. Also, refinancing a mortgage right now is easier than ever to get approved for because the housing market is struggling and because of Government stimulus plan that assist nearly any homeowner. The typical rule of thumb for refinancing a mortgage is that if the homeowner can save 2% in interest payments then they will benefit and save money from refinancing. With rate as low as they are now, millions of people would see a nice amount of savings by refinancing.

As opposed to what a lot of people think, mortgage lenders and banks are actually approving more refinancing applications than ever before. Since the housing market and overall economy and in such bad shape, they have a huge inventory of foreclosed homes and mortgage defaults to deal with. Home prices are dropping or increasing at a very slow rate. Instead of taking on more inventory, lenders and banks would rather help homeowners get a mortgage refinancing than let them lose their home. This is making it very easy for a lot of people to get the help they need, save money, and get a mortgage refinancing approval.

Homeowners should contact a lender or bank today to see how much they can potentially save every month by getting a home loan refinancing. Help is out there but homeowners need to find it for themselves. You can benefit from the record low interest rates and refinancing a mortgage is one of the best ways to do so.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner