Special offer

Reasons to go for refinancing

By
Mortgage and Lending with NMLS# 335055 335055

Reasons to go for refinancing

By: Brett Taylor



Are you finding it difficult to meet your monthly financial obligations? You can get relief if you opt for mortgage refinancing. There are a number of benefits you can avail if you opt for home refinance. Refinancing gives you the opportunity to replace your existing mortgage with a new loan that has favorable terms and also a favorable rate of interest. The same property can be used as collateral. You can use the proceeds of refinancing for paying off the outstanding balance of your loan. The new loan availed can either be the same as the existing loan amount or can be more than it. 

When should you opt for a home refinance?

There are a number of instances when you can make home refinance work for you. Refinancing can be opted for when-

    * You are finding it difficult to make payments towards PMI or private mortgage insurance.
    * You are planning to save more money
    * You want to do away with your mortgage at the earliest
    * You want to make a changeover from ARM or adjustable mortgage into FRM or fixed rate mortgage.
    * You want some additional cash so that you can pay off your credit card dues.
    * If a lower rate is prevailing in the market you can make use of it by availing home refinance.
    * You can also make your equity grow by refinancing.
    * Refinancing also helps you to enhance your credit score.

 

Conditions when you should not refinance:

Under the following circumstances a home refinance will not be very beneficial. These are the instances when you should not think about refinancing.

    * If you are in the process of paying off your first loan and you have used up considerable period of time say 10 years or more, availing a new loan will prolong the duration of the loan. Moreover you have to shell out more than what you had to pay earlier.

 

    * In the event the value of your property drops, it makes no sense in going for home refinance.

 

    * In case you have only a couple of years left for the first loan to get over, it is best not to refinance your home afresh. The main reason being you will be actually paying more money during the entire term of the loan.

 

Tom Burris
DallasLoanGuy.com

Dallas, TX

http://www.dallasloanguy.com/
Dallas Loan Guy      logo

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Your Texas FHA Expert and Dallas Mortgage Expert.

 

Texas FHA Loans- DallasLoanGuy

Comments (1)

Anonymous
benwade

Hello,

I read your article. After reading I come out with the conclusion that I should go for refinance. Thank you so much for posting!!!!

_____________________

<a href="http://www.realtypin.com">homes for sales</a>

Jun 03, 2011 01:12 AM
#1