Refinancing a home...?

Question

what are the pros and cons? Would it benefit the homeowner?

Answer 1

How ironic you would use the words pro's and con's when asking about a refinance. It seems that most self proclaimed mortgage pro's these days are just clever pitchmen trying to con people. Your question deserves a good answer as this is a serious situation where your financial future can be either blessed or cursed. If you are bettering your current interest rate by 1.5 percent or better, a rate and term refinance makes good sense. If you are needing cash and / or consolidating debt and lowering your rate by 1 percent or more, a refinance makes sense. What you are doing by restarting a new loan term is going back to minimal principal for the first few years again. If your current loan is only a few years old that won't make much impact anyway.
If you are about to go from fixed to adjustable or currently on an adjustable rate then again you might want to refinance. If your current loan is a decent fixed rate and you have some equity growth you might consider leaving it alone and opting for an equity secured line of credit. You can use it like a checking account and use it when needed up to the amount approved. Once paid down you can still use the available amount remaining over and over again without refinance fees. The interest rate isnt as low but the fees are a fraction of the costs of a typical refinance loan. The question most fail to ask themselves before refinancing is will this loan solve our needs and is the cost worth the end benefit. When you take out any loan you are in affect just renting money from a funding source. Make sure the source you use, and the type of loan you commit to, will fit well with your financial planning.

Answer 2

Just pay it off and liberate your life!!!!!!!!!!

Mortgage free and I won't go back. Theres nothing like going to bed knowing your house is yours and the bank isn't a co-owner.

As for interest write-off? WHAT A RIP. All your doing is giving a bank a dollar in interest so come April 15 Uncle Sam gives you 35 cents back on the dollar!! What a Bargain......NOT. There are people out there that say "You can get a higher rate of return somewhere else". Where? The stock market? Excuse me I just fell out of my chair laughing!!!!!!!!!

Answer 3

every time thinking a refinance you should look intently on the fee of the abode as against the loan stability. some parts contained in the country have suffered a extreme devalualtion contained in the market fee of the abode. Have a Realtor pull comps on your area to verify what the present market fee is. Then contact a respected loan broking service to purchase prices. inspite of you come to a decision do not borrow more suitable than 80% of the fee of your position...you want that cushion to allow for market united statesand downs. strong success!

Answer 4

depends on the situation.

I am a Branch Manager for Apex Mortgage. Rates are low, so... if you have a higher rate on your mortgage yes it will probably be beneficial.

Also if you are paying off credit cards, this to is very beneficial.

I am saving a person over 1000 dollars a month because of refinancing.

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