Refinance

The 4 most important factors that affect your quoted interest on a current ability home mortgage loan include:

1. The full amount of your home value
2. The ratio of your loan to home value
3. Your current income ability
4. Your credit rating.

Tips to Get it Done

It is important to remember that effective determination of the best home refinance option suggests for you to compare at least three offers, keeping in mind:

• Thorough attention to detail
• Apply for actual quotes, qualify offers and terms, then consider your best negotiating strategy for terms, rates, etc.

Home Loan and Refinance Statistics

The demand for home loans and rate refinance remains high. According to recent studies:

• Approximately 45% of all homeowners nationwide refinanced their original first lien home mortgage.
• The most common reasons to refinance are to consolidate debts, and to convert an ARM to a fixed rate mortgage.
• More than 50% of all first lien home mortgages increase the loan amount when refinancing based on an average appraisal increase of 30%, resulting in a lower loan to value ratio. The ratio drop alone frequently decreases payments 10% because mortgage insurance is no longer required.
• Last year, the demand for refinancing, consolidation, and conversion remained historically high due to greatly reduced interest charges on consumer debt.
• Locking in a fixed rate saves you money.

How to Know the Time is Right to Refinance

Taking into consideration today’s loans and interest rates, the most opportune time to refinance your home mortgage is the time when it makes sense for you.

• A safe bet is to consolidate your credit cards with a home equity loan. It’s easy to lower your monthly payment by 75%.
• Unexpected expenses may also be a good time to make your refinance decision, as an equity line of credit costs you nothing unless and until you decide to withdraw.
• It may be time to convert your ARM to a fixed rate mortgage depending on the expected trend of interest rates.