Thursday, January 19, 2012
Home Mortgage Loan Refinance Uses & Benefits
Even a small reduction in your mortgage interest rate can make the decision to refinance worth the cost and time. When you refinance to lower your monthly payment you free up money for other uses. If you plan to stay in your home for five years or more you may want to mortgage refinance and consider buying down your rate to further reduce your monthly payment.
Mortgage Refinance for Cash Out Of Your Home
Home loan mortgage refinancing can allow you to get cash out of your home equity for a variety of purposes: You may need to help pay for education expenses, medical expenses, a vacation home, or home improvements. Mortgage refinancing provides an inexpensive way to accomplish these goals, and the interest you pay is tax deductible.
Mortgage Refinance for Debt Consolidation
If you have debt outside of your mortgage and you have equity in your home, it’s time to consider refinancing your home loan. You are likely paying a much higher interest rate on credit cards, consumer finance loans, and auto loans. Through mortgage refinancing you can consolidate all of these debts into one loan. Not only will your monthly outlay be greatly reduced and most of the savings be due to paying far less in interest, but the bulk of the payment will be tax deductible. Refinancing your home to pay off and consolidate debt under one low mortgage rate is commonly a great choice.
Mortgage Refinance To Change To A Fixed Rate From An ARM
Adjustable Rate Mortgages (ARMs) seem like a great way to go when mortgage rates are low. At the end of 2009 rates are historically low, and unlikely to stay this low over the long term. As the likelihood grows that rates will increase that ARM quickly becomes a significant burden. Your payments and interest costs could even double. Now is the time to consider mortgage refinancing into a fixed rate loan. If you plan on staying in your home for at least 3 years refinancing your mortgage into a fixed rate will likely result in major savings and the peace of mind of knowing that your payments will not be increasing.
Mortgage Refinance To Pay off Your Home Loan Faster
You can structure a mortgage refinance to pay off your home sooner than under your current mortgage. By refinancing into a 20, 15, or even 10 year fixed mortgage, you will receive a lower interest rate. In this case your payments may go up, but each month you are dramatically increasing your equity in the home.
In no particular order I enjoy owning unusual breeds of dogs and cats; love to travel to exotic locations where there are opportunities to learn about even more exotic animal and sea life or the culture of the locale; follow the movies, Knicks, Clippers, and the Yankees; and work way too hard supporting all those passions.
Please add my Google profile to your circles.