More Homeowners Consider Refinancing
More Homeowners Consider Refinancing
Because of the decrease in mortgage rates to record lows, homeowners’ demand for refinancing has increased across the nation.
According to lenders and mortgage experts, all types of homeowners are attempting to decrease their monthly payments especially with the rates for 30-year mortgages decreasing to less than 4 percent ever since October of the previous year.
Mike Fratantoni, vice president of research for National Mortgage Bankers Association in Washington, D.C., said that nationwide refinance volume is at a three-year high in the past few weeks while mortgage rates stayed at record lows. Fratantoni added that the number one cause for the increase in refinances is interest rates.
Together with months of interest rates at record lows, some of the other factors that push the refinancing boom include the competitive lending market and modifications in a few federal refinancing programs intended for distressed homeowners.
There are advantages in refinancing a mortgage and some of these include reducing the monthly payments, eliminating the uncertainty of an adjustable-rate mortgage by changing it to a fixed rate, opening home equity cash to cover home improvements or college costs, and most importantly, shortening the loan term can result to thousands of savings in terms of interest.
According to John Winters, a wealth adviser at Morgan Stanley Smith Barney, he recommended all his clients to consider refinancing their mortgages, especially those who find it hard to live with little returns on CDs and bonds that have low interest because it can free up monthly income.
When considering refinancing a mortgage, you basically look at how long you think you are going to stay in your present home and whether or not the upfront costs offset the monthly savings. Greg McBride, senior financial analyst at Bankrate.com, said that you are not going to earn back the closing costs if you’re not staying in your home for a year or two.
Related posts on loans for people with bad credit:
- Helping Responsible Homeowners Act New Bill to Generate Savings through Mortgage Refinancing Lawmakers are thinking of ways to help those who are struggling with high rates of interest. One of the ways that they are working on is the Helping Responsible Homeowners Act. This legislation was already submitted to the senate committee in…...
- Assistance Programs for Refinancing or Buying a New House Assistance Programs for Refinancing or Buying a New House In terms of refinancing or purchasing a new house, there has been a wider range of options compared to the past for consumers who have little or no equity in their homes…...
- Tips for Refinancing Your Home Morgage One of the things that is continually asked these days is “Should I refinance my home mortgage?” Things are moving so quickly with the economy, that it is no wonder that you may be confused and not sure whether or not…...
- Home Loan Refinancing Options for People with Bad Credit Home Loan Refinancing Options for Individuals with Bad Credit Over the past few years, many Americans have refinanced their home loans to take advantage of the low interest rates. But, the low rates are not offered to all homeowners. Currently, the…...
- Help for Homeowners Underwater but Good Credit Various Forms of Assistance for Responsible Homeowners The latest effort of the Obama administration to assist the housing market is aimed at homeowners with solid credit and is making on-time payments on their mortgages but is unable to refinance because they own…...
Filed under: home equity loan • home loan • home loans
Like this post? Subscribe to my RSS feed and get loads more!