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Reasons To Mortgage Refinance
from:There are different reasons to seek a mortgage refinance. You can use a mortgage refinance to cash out equity in your home. This can keep you staying in your home while making needed home improvements. Or, you can use the money for other things like to pay off college expenses for your kids. Most people looking to mortgage refinance these days are doing it because they are stuck in an adjustable rate mortgage where the interest rate has reset or is set to reset. Some of these borrowers will find that they can refinance their mortgage and others will that either their situation, the local real estate market, or prepayment penalties will block this avenue. However, mortgage brokers are still trying to get people qualified, so it doesn’t hurt to try.
Lower Interest Rates
Another key reason people attempt to mortgage refinance is to lower their interest rates. Even with fixed interest rate loans, if the new rates available are at least one point less than the old one, it can be a good reason to look into refinancing. You do have to pay closing costs, which can add up to thousands, however if you intend to stay in your home a shift in your interest rate can easily make up for the closing costs, especially if the spread is wider between the old and new rate.
The uncertainty of Adjustable Rate Mortgages (ARMs) is also important when seeking a lower rate. If you refinance from a fixed to an ARM, the interest rate will eventually climb back up. However, if you have an ARM and find a lower rate on a fixed rate mortgage, this can be one way of locking into a much more attractive interest rate for the long term.
Modifying Terms
Lastly, the mortgage refinance can be a way to modify the terms of the agreement to opt for longer or shorter mortgage terms. Longer terms usually increase the amount you pay in your mortgage refinance but lower your monthly payments. Shorter terms typically increase your monthly payments but build up equity much faster and settle the loan quicker.
You can refinance a loan so that you are financing the home to take some of the equity out as cash. So, if you have 50% equity and want to take money out while modifying the terms of your loan, you can opt for a 40-year loan with only 20% down. That will give you 30% in equity to pay off closing costs and use the rest of the money for whatever else you want.
Mortgage Equity Specific links
Mortgage Equity News
Negative equity remains a drag on housing market - Los Angeles Times
 Los Angeles Times | Negative equity remains a drag on housing market Los Angeles Times Nearly 1 in 3 homeowners with a mortgage in LA County owes more than the property is worth, new data show. These underwater loans hinder mobility and hurt prices because they tend to stymie the important move-up market. More than 60% of loans are ... One in three mortgage holders still underwater Negative Equity More Widespread Than Previously Thought, Report Says More than 30% of mortgage borrowers still underwater |
Increase your equity while protecting your debt - Vancouver Sun
Increase your equity while protecting your debt Vancouver Sun The immediate increase in net worth is negligible and equity grows at a glacial pace as most of the mortgage payments in the early years cover interest charges. Unlike stocks, housing is not a publicly traded asset so there is no reliable way to track ... |
Syndicated Mortgage Investment Company offers brokers and investors secure ... - PR Web (press release)
 PR Web (press release) | Syndicated Mortgage Investment Company offers brokers and investors secure ... PR Web (press release) May 24, 2012, ONTARIO, CANADA – Specializing in SMIs and REITs, Titan Equity Group Ltd has become the country's go-to source for Syndicated Mortgage Investments (SMI). The company provides sound investment solutions for their diverse client base in ... |
Equity release needs different approach - Money Marketing
Equity release needs different approach Money Marketing As far as I can see, the equity-release sector is set to be a net beneficiary of the programme but it will also be presented with a number of challenges. Given that once the RDR is here, advisers will be paid solely for the advice they give rather than ... |
New York Mortgage Trust, Delcath Unveil Stock Sale Plans - Wall Street Journal
New York Mortgage Trust, Delcath Unveil Stock Sale Plans Wall Street Journal The company focuses on mortgage-related and financial assets with a focus on multifamily CMBS and agency RMBS. As of May 2, New York Mortgage Trust had about 14.2 million shares outstanding. The company has tapped equity markets several times in recent ... |