Refinancing Your Home ? Factoids And Realities | Real Estate ...

Mar 22 2012

How old is your mortgage? If you took out your mortgage more than a couple of years ago, it may be a good idea to consider refinancing the loan. As house prices continue to rise you may be able to get a considerably better rate. Remember that several factors, not the least the value of your home, your income, your FCO credit rating and the prevailing interest rates based on the economy at large, can determine your mortgage rate.

What we?re trying to say here is that change is inevitable for most people who qualify for mortgage loans across America. House prices in America continue to increase, and the rates can often be defined as fantastic. Almost everyone?s house is worth more today than it was when he or she bought it. Unless you?ve been job-hopping, or unless your boss? name is Ebenezer Scrooge, it is also highly likely your income has also gone up the past year or two. While we cannot say this is a general rule that applies to everybody, the likelihood of mortgage terms changing if your income has drastically gone up over the past few years can be quite high. If you?ve been on time with loan and other credit repayments, have had a steady job and been living in the same address for quite a while, your credit score will also be getting better and better. Prevailing interest rates, however, would be the key element in making things happen for you.

About Your Rates

Your interest rates will not be static ? rather, they will fluctuate ? if your mortgage is variable rate. But on the other hand, a fixed rate mortgage would have you at the same rate you had qualified for when you initially applied. Current interest rates are still very good, and there are a lot of mortgages out there that were fixed at rates significantly higher than those lenders are selling at the moment.

Quick conclusion ? take note of the factors we discussed above, and if you can identify with some, if not all of them, then by all means refinance your home, or at least mull it over. Succinctly put, a refinance would be the act of taking out a new mortgage with a more reasonable set of terms and using it to make payment on your previous mortgage. There will be fees involved. For sure, your financial institution conducting the refinance will charge you for preparing the loan, and early repayment fees apply for many existing mortgages, so make sure you inquire about these fees before going any further. But despite all these fees, they cannot quite offset the savings. Many people can get well over a full percentage point off their mortgage and the savings this can result in can be hundreds of dollars a month. You may have to tighten the belt, though, for a couple months, to cover the fees associated with the refinance. And when everything?s said and done, your mortgage repayment is lower ? end of story. It?s definitely something worth considering.

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best real estate | Clint Reedy | 22 March 2012 |

Source: http://www.eurofest2010.com/refinancing-your-home-factoids-and-realities

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