The latest refinance news can help save your money on your home. Low interest rates, a collapsing mortgage industry, major job loss, and foreclosures are on the rise and on and on. These headlines captivate and scare the American public every day. Once you can learn to settle down and listen with a discerning ear, you can take all of this refinance news and use it to your advantage. This time has never been better to make improvements on your finances.
The best refinance news is that interest rates are at an all-time low. If your current mortgage has a less than desirable rate, you may use this good news to seek a better rate for your mortgage. You can also use this news to change from a variable rate to a fixed-rate or shorten your loan term. Low rates are good news for everyone regardless of the reasons behind your refinance.
Along with a new low rate, this is a great time to get cashback on the equity in your home. If you have paid a sizable amount of your original loan, then you stand the chance of having a good deal of equity to borrow against. You can pay off high-interest debts, do home repairs or make college payments with this money. You may end up with a greater total loan or an extended number of years to pay, but your immediate financial picture will be much more stable.
If you do not have enough equity to refinance with cashback, you can also renegotiate the terms of your existing loan. This is more good news. If cash flow is not a problem, and you want a smaller total debt, you could go from a 30-year note to a 15-year note. Find out the largest monthly payment you could afford and work from there. If cash flow is a problem and you need to lower your payment, adding years onto your existing loan can save you hundreds of dollars a month.
There are also loan companies, banks, and brokers out there who are struggling and will try to get more money out of you. The bad news is, these cheaters can be very difficult to spot. Rather than relying on TV ads and internet notices, ask friends and family for companies they have worked with. With all the refinance news floating around, making sure you are dealing with a reputable bank is of key importance.
Using available information and news to your advantage will help you find the perfect financial solution for your specific needs.
Refinancing may not be the best option for you right now. Have you heard about a loan modification? It’s very popular now. Find out how to write an effective loan modification letter that will get you qualified.