Like so many people you may be deciding if mortgage refinancing is for you at this time. There are several factors to decide on. And you need also to get some objective help in your decision. You will also want to determine the pros and cons before deciding to do it.
You have to know that banks loan against or based on your income not on your property value. So they want to make sure you can pay back the loan. The longer you have been at your job the better. And the better your credit score the better interest rate you will get. Chcek your credit report for any mistakes. Clear them up before applying for your loan.
Some refinance and then go with a variable loan. For some this is the only option for lower mortgage rates. But if you have a choice between a fixed and a variable loan you have to decided which is the better of the two for you.
They go for a variable interest loan because there are some great rates out there and you will have a low monthly payment for six months or a year but then the rates will go up and your payment per month will go up also. Some people count on a raise at work or some other reason to believe that they will be able to afford the increased payment.
But you have to be realistic. You do not want to later on find it difficult if not impossible to pay the higher monthly payment down the road. If you are refinancing your fixed rate loan now that is let us say a thirty year fixed loan realize that you are starting all over again.
And if you take money out with the refinance you are taking the equity out of the home and spending it. This is plain and simple and should be a sobering thought for you. Some people thought that their home would continue to grow in value but instead their home went down in value. This is where so many people got in trouble.
If you have to sell later on your home might not be worth what it is today and you will either have to have a short sale or have to make up the remaining difference in cash to the lender. But some people think their property will be worth more years from now and they simply have to refinance again. This is why so many people are in trouble today. We cannot always count on property values rising.
And you have to determine what you are taking the money out for is worth the risk involved. If so then it might be a good move. But if you want a new car or great vacation well that is all your choice. But you should seek the advice of a trusted financial planner to get all your options in line. You need to decide what each option will result in. If you think it is still a good idea then go for it. But spend a lot of time with your decision. You will have to live with it for awhile. - 29904
You have to know that banks loan against or based on your income not on your property value. So they want to make sure you can pay back the loan. The longer you have been at your job the better. And the better your credit score the better interest rate you will get. Chcek your credit report for any mistakes. Clear them up before applying for your loan.
Some refinance and then go with a variable loan. For some this is the only option for lower mortgage rates. But if you have a choice between a fixed and a variable loan you have to decided which is the better of the two for you.
They go for a variable interest loan because there are some great rates out there and you will have a low monthly payment for six months or a year but then the rates will go up and your payment per month will go up also. Some people count on a raise at work or some other reason to believe that they will be able to afford the increased payment.
But you have to be realistic. You do not want to later on find it difficult if not impossible to pay the higher monthly payment down the road. If you are refinancing your fixed rate loan now that is let us say a thirty year fixed loan realize that you are starting all over again.
And if you take money out with the refinance you are taking the equity out of the home and spending it. This is plain and simple and should be a sobering thought for you. Some people thought that their home would continue to grow in value but instead their home went down in value. This is where so many people got in trouble.
If you have to sell later on your home might not be worth what it is today and you will either have to have a short sale or have to make up the remaining difference in cash to the lender. But some people think their property will be worth more years from now and they simply have to refinance again. This is why so many people are in trouble today. We cannot always count on property values rising.
And you have to determine what you are taking the money out for is worth the risk involved. If so then it might be a good move. But if you want a new car or great vacation well that is all your choice. But you should seek the advice of a trusted financial planner to get all your options in line. You need to decide what each option will result in. If you think it is still a good idea then go for it. But spend a lot of time with your decision. You will have to live with it for awhile. - 29904
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In addition to having less debt by refinancing a mortgage, also look at GIC rates to get higher fixed income returns. Mortgage rates vary from lender to lender so ask around.
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