Welcome to Refinancing Guide
Interest Only Refinance Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Refinancing mortgage loans is becoming quite popular today with many homeowners. While years ago when you got a mortgage to buy a home, you usually paid on the same mortgage for years until it was paid off, a lot has changed since then. One reason why refinancing mortgage loans is so widely used is that there is a larger variety of types of mortgage loans available to home owners. Banks now offer refinancing mortgage loans, home equity loans, reverse mortgages and more. Debt consolidation is another reason many homeowners choose refinancing mortgage loans. Often they need additional cash for a vacation, wedding, medical bills or other personal expenses. Anytime you get a loan of a sizable amount, the bank requires the borrower to put up some collateral towards the loan. You're probably wondering where the extra collateral is coming from, since your home may be your only asset.
from:When a bank borrows money for the purchase of a home, for their own protection, they usually will only borrow up to 80% of the value of the home. They're not as concerned with the price of the home as they are the value of the home. In case of a foreclosure, it's the value of the home that will concern them. If you are buying a home that's valued at $100,000, they'll borrow up to $80,000 towards the purchase. As the years go by, the balance of the loan decreases while the value of your home increases. If you're considering refinancing your mortgage loan for extra cash, they'll do an appraisal on your home. If your home is now valued at $120,000, they'll borrow up to 80% of this amount, which is $96,000. If the balance of your mortgage is down to $70,000, you have $26,000 of extra equity on your home to borrow against or use as collateral. This is why many people choose refinancing mortgage loans as a way to pay off extra debts or get money for other expenses.
Refinancing mortgage loans is also used as a way to improve their credit scores and pay off other debts. By again using the equity in their home, they can redo their current mortgage and pay off debts at the same time, giving them less monthly payments. With less monthly payments, they are able to make the payments on time, thus improving their credit rating. Refinancing mortgage loans is used for debt consolidation more than any other reason.
When banks take applications for loans, they always run a credit report before giving the loan. The higher your credit score, the better interest rate you'll generally be offered from the bank. This is why it's important to make all your monthly payments on time. Some people that use refinancing mortgage loans as a means of getting out of debt find themselves paying a higher interest rate because their credit rating is worse when they originally took out their mortgage. Refinancing mortgage loans often gives couples a second chance to get ahead.
Interest Only Refinance News
School district refinances bonds - Contra Costa Times
School district refinances bonds Contra Costa Times Only some of the district's bonds can be refinanced. "When someone buys a bond, they are guaranteed a particular interest rate for a particular period of time," Stephenson said. "Once that ends, you can refinance it. It becomes callable. |
TEXT-S&P rates EquiPower Resources Holdings prelim 'BB' - Reuters
TEXT-S&P rates EquiPower Resources Holdings prelim 'BB' Reuters May 24 - Overview -- Power project EquiPower Resources Holdings LLC is refinancing its senior secured bank loan due 2018 and revolver due 2016 with new first- and second-lien term loan facilities. EquiPower is adding the 578 megawatt (MW) natural ... |
Mortgage Lender Residential Finance Corp. Explains Benefits of HARP 2.0 - MarketWatch (press release)
 eNewsChannels | Mortgage Lender Residential Finance Corp. Explains Benefits of HARP 2.0 MarketWatch (press release) COLUMBUS, Ohio, May 16, 2012 (BUSINESS WIRE) -- When June Snow first looked into refinancing her interest-only mortgage, she was told it would be impossible because the value for her three-bedroom, two-bath ranch style home was not in the necessary ... Can you refinance an underwater home without HARP? Bank of the West Sees Rise in Mortgage Applications from HARP 2.0 Will New Policies Help Undewater Homeowners? Not Me |
Senior Housing Finance Activity: HFF, Ventas, Oak Grove Capital, & More - Senior Housing News
Senior Housing Finance Activity: HFF, Ventas, Oak Grove Capital, & More Senior Housing News An Oak Grove Capital affiliate provided an 18-month, interest-only loan to a limited liability company sponsored by The Northbridge Companies and Fundamental Advisors LP. Northbridge, a senior community owner and operator based in Boston, ... Ventas Announces New Lease with Kindred |
Time to Refinance While Mortgage Rates are So Low - FreeRateUpdate.com
 Brisbane Times | Time to Refinance While Mortgage Rates are So Low FreeRateUpdate.com Of these applications, 76.6% were for mortgage refinances of which only 28% were for HARP, which was the same as the previous week, and government loans saw a decrease. This is evidence that mortgage refinance applications for traditional conforming ... European Strife Gives America Life Refinance your FHA Mortgage regardless of your appraised value or loan amount. Fixed rate doesn't outsmart the market |