Debt Consolidation

Custom Search

Debt Consolidation
Debt Relief
Mortgage Quotes
Home Mortgage Makes
Down Payments -
Home Loan Basics
Picking A Home
Adjustable Rate Mortgages
How To Find
Second Mortgage Sub
Finding the Lowest
Low Interest Rate
2nd Mortgage Loan
Know Before You
Refinancing and Current
Can I Get
Reviewing Your Closing
Learn What Refinance
Good Mortgage Broker
Let Your Lender
Home Mortgage Refinance
Understanding Second Mortgages
What to Know
Cheap Home Loans
Reverse Mortgage -
With Banks, Credit
Fixed Rate Mortgage
Refinancing First and
Home Equity Line
Benefits of Refinancing
Home Loan Refinance
How to Refinance
What are Mortgage
Mortgage Loan Negotiation
Does Paying Points
Mortgage Refinancing Tips
Mortgages - Points
Debt Consolidation
Debt Relief
Mortgage Refinancing
by Matt Ellsworth
Mortgage is a long term loan and the mortgage monthly payments form a major monthly expense. A lower mortgage rate means lower monthly mortgage payments. This is one reason why people hunt for low interest rates on a mortgage.As we know, th

Mortgage is a long term loan and the mortgage monthly payments form a major monthly expense. A lower mortgage rate means lower monthly mortgage payments. This is one reason why people hunt for low interest rates on a mortgage.

As we know, there are two types of mortgage rates i.e. fixed and floating, and different people prefer different types of rate. Again, the prevailing market rate keeps changing all the time. So its quite possible that you entered a mortgage at a rate that is higher than the current rate. This is when you start thinking of mortgage refinancing. By mortgage refinancing we mean full payment of the current mortgage loan by entering into a new mortgage loan at a lower rate. So mortgage refinancing starts making sense as soon as the difference in the mortgage rates becomes significant (say 1.50-2% points) i.e. prevailing market rate comes down significantly as compared to the mortgage rate on your current mortgage.

Mortgage refinancing decision would, of course, also depend on the remaining term of your mortgage (for mortgage refinancing would make no sense if you had just a short period of say 4-5 years remaining on your current mortgage). These criteria for mortgage refinancing are based on the various costs associated with mortgage refinancing. These mortgage refinancing costs include prepayment costs for the current mortgage, closing costs of the new mortgage and other fees etc. Generally, people use mortgage refinancing as a tool to move from a higher adjustable rate mortgage to a lower fixed rate mortgage. Though the reverse is possible too in some cases but adjustable rate mortgage to fixed rate mortgage is generally the case.

Another reason for mortgage refinancing is ‘need for money. So, if you have built a significant home equity, you can use mortgage refinancing to get a home mortgage loan that will generate cash for you (by bartering your home equity). This money generated from mortgage refinance can be used for various purposes like financing the education of children, debt consolidation or home renovation. Debt consolidation is one big reason for mortgage refinancing. You can use mortgage refinance for creating money to get rid of high interest debts (like credit card debt, personal loans etc) and hence save money and your credit rating too.

By mortgage refinancing you can save thousands of dollars in terms of the total interest you pay over the term of loan. So mortgage refinancing is surely a good option but must be exercised only after proper evaluation of the situation and of your own needs.

What was started as an online store, has turned into a growing collection of internet resources on subjects ranging from Network Marketing, Investing, Health, Travel and Credit Cards. Visit for our store or for more articles. For instant access to over 20 free ebooks, visit our free ebook page now! This article may be reproduced only in its entirety.

The site is not responsible for any content in it. E-mail: alldir[at]gmx[dot]com
debt consolidation, home loan, mortgage, debt free, debt help, refinance, equity loan, unsecured, secured debt, bankruptcy, credit card , bad credit, payday, cash advance, cash settlement, line of credit, student loan, interest rate, borrow money, car loan, adverse credit, compensation, quote, credit score, consolidate debt Altoona township Bergen township Perry township Balance of Canajoharie town Mehurin township Cowgill Frontier County Lansdale borough Cherry Valley Lecompte town Briarwood West Mansfield village Pulaski town Iliff town Finleyville borough Fulton County Dryden village Oxford La Grange town Waynetown town Dunn town Chino Valley town Lakeville Alto town (pt.) Eldridge Harpers Ferry town Crane County Lyndon town Armour Itasca village (pt.) USA UK Australia Canada Guyana Pridnestrovie (Transnistria) Saint Barthelemy Cyprus Georgia Vatican City Nigeria Armenia Zambia Warwickshire Norfolk Fermanagh Berwickshire Merioneth Rutland Kent Renfrewshire Herefordshire Cambridgeshire Arkansas (AR) Alaska (AK) West Virginia (WV) Utah (UT) Maine (ME) Ohio (OH) California (CA) Mississippi (MS) Arkansas (AR) Colorado (CO) Iowa (IA) Arkansas (AR) Michigan (MI) District of Columbia (DC) New Mexico (NM) Indiana (IN) Connecticut (CT) Federated States of Micronesia (FM) Maryland (MD) Federated States of Micronesia (FM)