Archive for the ‘Refinance’ Category

Mistakes to avoid in mortgage refinancing

Thursday, March 21st, 2013

mortgage refinancing, mortgagePeople often go for mortgage refinancing in order to save money. They need immediate cash and pay back interest at lower rates. Finding the right refinancer is very important along with understanding the terms and conditions. Most of the borrowers make some basic mistakes while refinancing their mortgage. Here is a look at those mistakes and their preventive measures.

Sometimes when have taken loan against your home and need more cash, you can either go for second mortgage or need more money than value of old mortgage. People think this as a risk as they will go in more waters of debt which is a big mistake. When people go for mortgage refinancing, they only compare the present interest rate with the rate that they will be getting.

The major mistake here committed is the cost which the new financer or bank will charge to refinance is completely ignored. Thus, you must always check the present interest rates, future rates, mortgage amount before refinancing the mortgage.

Benefitting from Refinancing

Saturday, October 1st, 2011

The markets are pretty volatile, owing to which you may need to modify your existing mortgage plan or shift to an entirely new one. If your existing property is giving you a zero or negative equity, you need to apply for refinancing so that you can tackle with the extra chunk of debt. Refinancing can also help you do some major repairs in your house or work over the extension. On refinancing, your existing mortgage plan is modified & you get a new interest rate over the new plan.

It is necessary to have a good credit report while applying for a refinance. It is a good option settle down old debts to increase your credit rating. Once done, do a thorough research about the ongoing deals & select the best one. You can also have a talk with your lender, telling him your current mortgage status & your needs for a refinance plan.