Refinancing your home can save you money, but consider both sides before committing to a new loan. Review your mortgage options with a trusted lender on a regular basis so that you are comfortable knowing you have the best possible rate at all times. Home refinance rates fell to record levels, so the affordability factor is strong. Refinancing programs change all the time, so even if you were turned down previously does not mean you will not be approved for one of the new refinance programs.
What type of mortgage refinance do you qualify for? Conventional, FHA, HARP or Sub-Prime home loans? For example, if you have bad credit, a FHA mortgage should be considered because they feature a low interest rate.
Consider answering the following 4 questions below before rushing into refinancing a home.
1. How long do you plan on staying at your current residence? If you plan on staying there for a while, a 30-year fixed rate mortgage is recommended.
2. Do you need to consolidate any consumer debt like credit cards or personal loans because the payments are adjusting with high rates?
3. Will this new home refinance loan reduce your mortgage payments monthly without adding years on your loan?
4. Home refinance rates are at 50-year lows, so get approved for a low rate loan today!
Both home equity and refinance Loans can be very pragmatic tools for homeowners who consolidate variable interest rate debt. In some cases, borrowers can actually convert their bad credit debts into a positive trade line that could increase your poor credit score.
Most people take out home equity loans because they are efficient methods for raising capital for home improvement financing and refinancing personal bills that have high interest rates.
In most cases you need good credit for second mortgages, but Bridge still offers a few bad credit home equity loans to qualified borrowers. We suggest that you learn your credit scores before shopping lenders online.
Interest rates are higher with equity loans than with first mortgage loans and refinancing will actually require less equity than the second mortgages demand. The HARP refinance extends low rate offers to homeowners that have an underwater loan. Home equity credit lines and closed end home equity loans are very difficult to qualify for in this credit crunch era.
Some people may need to refinance their mortgage to get cash out especially if you have no equity or your first mortgage is under-water.
HUD has expanded many of the home refinancing products that benefit thousands of homeowners who have virtually no equity left as property values declining so much in recent years.