Consolidating first and second mortgage loans

Why not take advantage of this higher credit score? A lower rate, even by a fraction of a percent, can translate into yearly savings of thousands of dollars.Another good reason to refinance is cash — cold hard cash.If your lender charges a penalty, be sure to factor these costs into the equation when deciding if refinancing is worth it for you.Other costs include attorney fees for the complicated paperwork, and inspection fees for a new appraisal.

It doesn't make sense to refinance a property unless you plan to stay put.It can be an easy way to restructure your home cost with a lower interest rate and payments, or it could be a recipe for disaster. Smith, who has excellent credit and always pays on time, is sick and tired of his variable rate.The more you know, the easier it is to decide if you're a good candidate. He signed up for an adjustable rate mortgage (ARM) at a volatile time in the real estate market, when it looked like the rates would ebb slowly. Smith knows he can negotiate a better deal than the one he's stuck with right now, and hopefully get himself into a fixed-rate mortgage (FRM) with a low rate for the rest of his term. Smith can even choose to embark on a new mortgage with a longer duration in order to stretch out (and lower) the payments over a longer period of time.The main reason is escalating closing costs, now up to ,000 for the average borrower.If you don't stay long enough for the lower monthly mortgage contributions to offset the closing costs — why bother?

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