Article Sphere Logo

Refinancing Your Mortgage - Can You Really Save Money?

By Expert Author: David Mayer | Article Abstract
Word Count: 345 words | Views: 76 view(s)
Well, there you are with a loan secured on your home. Every month, you pay the instalment out of your income. What’s the problem? Why should you want to refinance? For most, it could not be more simple. Because you want to pay a lower monthly instalment! When prices for all the basic necessities of life keep going up but your income fails to keep pace, you get squeezed. Let’s think about how you came to be in this position.

Perhaps you bought your home when the interest rates were high and you were locked into that higher rate. Even though the Fed kept dropping the rates over the last few years, you never saw any savings. Or perhaps it’s the other way round. The reason you were locked into a higher rate of interest was a poor credit score. Now you’ve been paying that mortgage for all these years without a problem, your credit score has improved. Finally, you’re able to qualify for lower mortgage rates.

Except that life is never quite that simple. It’s all about balancing costs and benefits. Sure, you might be able to save a few dollars every month if you refinance. But how much will you have to pay as origination fees and charges for this deal? When you get quotes for refinancing, don’t focus on the monthly instalments, look at those costs. Just as important, ask your current mortgage lender about closing costs. Don’t forget, the plan is to pay off the existing mortgage with a new loan. You need to use a mortgage refinance calculator to work out how many months on reduced payments it’s going to take before you’re ahead of the game again. It might be better to stay on the current mortgage. Most of the experts agree you should be looking for at least two full percentage points of reduction in the interest rates before it’s worth your while to go ahead on the deal. You also need tax advice because closing costs are not deductible but there may be tax savings on the new loan.
David Mayer

About the Author/Author Bio

See what David Mayer has written on other topics by visiting http://www.home-equity-loans-place.com/refinancing-your-mortgage.html, the site where he has frequent contributions and open discussions. David Mayer has a vast experience in the domain and will give you a better idea of it.

Article Source: http://www.articlesphere.com/Article/Refinancing-Your-Mortgage---Can-You-Really-Save-Money-/184266

Article Tags: mortgage

Article Submitted: 2009-04-12 | This Article has been viewed 76 times.

Rate Article

Related Videos

Getting the Most from Mortgage Refinance
How to Refinance to Avoid Foreclosure
Bad Credit Mortgages
Learn about Mortgage Rates and Points
Home Loan Mortgage Choices for your Next Home
 

More "Mortgages Refinance" Related Articles

 
 

Listed below are more articles related to the above article from the "Mortgages Refinance" article category.

People interested in the above article "Refinancing Your Mortgage - Can You Really Save Money?" are also interested in the related articles listed below:

 
The global financial crisis has left lots of borrowers out of luck when it comes to buying the commercial property that they need or want. As many as eighty percent fewer commercial property loans are now being written than than before. If you have been rejected by a lender and are looking for an alternative funding source to buy your commercial property, you should consider a private commercial mortgage lender.
If your past mistakes led you to foreclosure, you probably feel like the weight of the world is on your shoulders and that you may never qualify for a home mortgage again. The truth is that obtaining a home loan post foreclosure requires a bit of legwork, but can be accomplished. Thousands of current homeowners have been through a foreclosure before.
"Blessed are the young," says Herbert Hoover, "for they shall inherit the national debt." Debt, in whatever language or guise, is bad. But what if you've incurred debts and find it hard to dig yourself out of them? Does this mean you are forever disqualified from owning a home? Some would say yes. Bad credit loan mortgage rates show otherwise.
With the government now putting policies in place to stimulate the housing market, this could be a great time for potential home buyers to find the home they have been looking for. A mortgage broker can be a good choice in helping these buyers find the mortgage they seek.
You decide it's time to go shopping for a home mortgage. The instant this decision is made, a feeling of dread washes over you. The same old questions thump inside your brain. How do I compare home loan interest rates? How will I know a fair rate when I see one? The where, what, how and why of home financing will have you so mind boggled you will soon be tearing your hair out in despair.
With the commercial real estate market about to go into a crisis that may actually even be worse than the one experienced by the housing sector, it is easy to figure out the reasons why the bank regulators have urged the lenders to enhance their efforts in finding ways to approve a commercial mortgage modification for their property owners on the brink of foreclosure. The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and other financial regulators are worried that the stability of the financial institutions could easily crumble with the onset of the upcoming wave of defaults by commercial property borrowers.
Financial analysts have been predicting that the commercial property sector will also undergo a crisis that might even be worse than the collapse experienced in the residential housing market. The increasing number of vacancies in commercial properties and the unchecked increase in the unemployment rate are harbingers of potential serious problems in this particular market.
 
Article Directory Home All Categories Finance Mortgages Refinance
 

Can't find what you're looking for? Try Google Search!
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.

Afrikaans Albanian Arabic Belarusian Bulgarian Catalan Chinese (Simplified) Chinese (Traditional) Croatian Czech Danish German English Estonian Filipino Finnish French Galician Greek Hebrew Hindi Hungarian Icelandic Indonesian Irish Italiano Japanese Korean Latvian Lithuanian Macedonian Malay Maltese Dutch Norwegian Persian Polish Portuguese Romanian Russian Serbian Slovak Slovenian Spanish Swahili Swedish Thai Turkish Ukrainian Vietnamese Welsh Yiddish