There are several reasons why a refinance mortgage might just be the
right option for you. Getting a refinance mortgage is a smart move
for any home buyer. With refinance mortgage, not only do you lower
down your interest rates but you also reduce your monthly repayments.
Refinance mortgages will also allow you to change loan terms from
a long one to something shorter. In this way, you can pay off your
refinance mortgage loan much quicker and save more on your overall
What Refinance Mortgage Does for You
Typically, the first home loan that you have was probably closed on
high interest rates. Refinance mortgages can lower those rates for
you. By taking on a second refinance mortgage, you close the new loan
at lower interest rates and pay off the existing loan.
The impact of refinance mortgages on the amount of funds you accumulate
is especially big if interest rates are as low as 2% to 1%. Imagine
if your existing principal loan balance is $150,000 with an interest
rate of 6%. Your monthly payment for this loan is $899.30. If you
take on a second refinance mortgage with 5% annual interest rate and
a 30-year term, your monthly payment would be $805.23. The refinance
mortgage you take actually saves you $93.77 on your monthly payments.
Now, you might think that $93.77 of savings on refinance mortgages
is hardly worth anything. But this amount, when accumulated, can be
a nice addition to your funds. Take the above example. If you use
a refinance mortgage calculator, you will be able to find out how
much are the total interest bills of each loan. The first loan would
have an interest rate bill of $173,757.28 after a year. The refinance
mortgage however would only have an interest bill of $139,883.68.
This allows you to save up to $33,873.61 on your refinance mortgage
Just imagine what you can do that amount of money in your savings.
A new home? A new car? All that is possible with a refinance mortgage
"Ninety percent of all millionaires become so through owning real estate."
- Andrew Carnegie
Aside from giving you big savings, refinance mortgages also allows
for greater loan satisfaction. If the terms of your current loan are
unsatisfactory, you can make the switch and may the pay off with a
refinance mortgage. Refinance mortgage gives you the option of changing
your lending company whose services or programs make you unhappy.
Perhaps you would like to change the duration of your loan? A refinance
mortgage makes it possible for you to take on a shorter loan term
yet still be able to repay your existing loan.
Tired of receiving several bills at the end of each month? Refinance
mortgages will help eliminate that. Free of hassle is what you will
be when you get a refinance mortgage loan. Just think. Getting a second
refinance mortgage will allow you to consolidate all your debts into
one single monthly bill. One bill means less confusion and less possibility
of a bill forgotten or a debt going unpaid. With a refinance mortgage,
you can even remove yourself from collections and the harassment of
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Refinance rates increase for TuesdayBankrate.comThe average 30-year fixed-refinance rate is 3.86 percent, up 4 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.89 percent. At the current average rate, you'll pay $469.38 per month in principal ...
Refinance Volumes Increased in November 2017The MReportThe Federal Housing Finance Agency (FHFA) released a report on refinance volumes for November 2017, on Wednesday. The report indicated that total refinance volume increased in November as mortgage rates in October 2017 remained below the levels ...