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10 Reasons to Refinance Your Mortgage

By Tami Murphy

Mortgage and Lending with Blue Line Mortgage

January 29, 2008 03:05 PM

1. Lower your interest rate & monthly payment.

2. Save thousands in interest.

3. Build equity faster by shortening the term of your mortgage.

4. Consolidate debts & utilize the interest deduction.

5. Secure a low fixed monthly payment with a 30 year fixed.

6. Pull cash out for additional purchases, investments, college.

7. Lock in a low interest rate for the entire term of your loan.

8. Reduce your term and pay off your mortgage years earlier.

9. Use cash out for home improvements that add value to your home.

10. Save thousands of dollars over the life of your loan.

If you are thinking about refinancing for any of the reasons listed above, now is a great time to contact your mortgage professional.

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Eric Bouler

Gardner Realtors, Licensed in La. - New Orleans, LA

Listening to your Needs

I believe that people should only refinace for valid reasons. I am conservative and want to get the thing paid off sooner. To bleed equity out of your home does not make sense to me. Let your kids get their own education. Sorry for the rant but I see too many people ending up being poorer by doing this.

Jan 29, 2008 03:16 PM

Anonymous

Tami Murphy

Hi Eric,

While I agree that some folks end up poorer or financially behind by doing a refinance, there are plenty who can be responsible with the financial responsibility. My real estate agent said something to me I will never forget: "Your home is not an atm machine". I couldn't agree with her more. One must very carefully weigh all their options before pulling cash out which I believe is what you are conservative about.

In regards to getting your home paid off sooner, there are programs that enable you to build equity much quicker with no change to your current spending habits. You can actually pay off your home in about 1/2 the time than a traditional 30 year fixed loan. You can click on my profile which contains a link to learn more about it.

Jan 29, 2008 03:49 PM

Vickie Nagy

Coldwell Banker Residential Real Estate - Palm Springs, CA

Vickie Jean the Palm Springs Condo Queen

I am an agent, and I plan to add to my real estate portfolio. Glad that mortgage brokers are open to new loans.

Jan 29, 2008 04:34 PM

Sarah

I think the most important concept of refinancing that was left out of your equation is what is your home worth! The average borrower can't refinance due to the lack of equity in their homes. This is the first thing the borrower should be told, before proceeding with the refinance and incurring fees. Most or should I say more than most can't refinance due to the lack of equity!

Jan 30, 2008 04:53 AM

Equity in the home, combined loan to value, income to debt ratio, what's owed on the first & what's owed on the 2nd are all part of the equation. Borrowers are told right from the start if there's not enough equity to refinance & no fees are incurred.

Jan 30, 2008 06:14 AM

loanbytami@yahoo.com

Hi Sarah,

I used a direct link to reply above & unfortunately my name didn't post.

Jan 30, 2008 06:17 AM

10 Reasons to Refinance Your Mortgage

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Tami Murphy

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