Posts Tagged ‘refinance’

Refinancing Your House in the Economic Storm

Posted February 13, 2009 by Bernz

The only potential bright spot in today’s crumbling economy is the continuing decline of interest rates. Not so great for investors but good news for borrowers. Mortgage rates are at historic lows and now may be a great time to refinance to a lower rate. There are some considerations to keep in mind before approaching your bank about your mortgage.

refinancefeature1. Know your credit score. One of the first things a bank or mortgage company will do when you approach them for refinancing is to find out your credit score. It makes sense for you to do it first so that you can clean up any errors or inconsistencies and be able to explain any derogatory items on your report.
2. Calculate the costs of refinancing. There are many costs to setting up a new mortgage and there may be a penalty charged by your bank or mortgage company for ending your existing mortgage early.
3. Calculate the time frame you have to work with. This is the last piece of information you need to determine whether refinancing makes sense for you.

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Posted in Financial Education, Investing in Real Estate, Investing Strategies | 1 Comment »

Should you refinance your mortgage?

Posted December 23, 2008 by Bernz

The most common reason to refinance a home mortgage is to get a better interest rate and lower your monthly mortgage payments. You also might want to refinance your mortgage if you want to:
a) Convert from an ARM into a fixed rate mortgage or vice versa
b) Receive cash or equity to pay off other debts
c) Extend the life of your loan (i.e. from 15 to 30 years)

mortgage2Here are some common questions and answers that will help you determine if refinancing is a smart financial decision for you.

Q: What are the costs involved in refinancing?
A: Typically you pay an application fee and closing costs. You may also choose to pay discount points if you’d like to buy down the interest rate.

Q: What does it mean to cash-out?
A: If you have enough equity in your property you can refinance your mortgage with a loan amount greater than your current mortgage. The difference in the amount is yours to keep and use as you see fit.

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Posted in Investing in Real Estate | No Comments »


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