logo
g Text Version
Beauty & Self
Books & Music
Career
Computers
Education
Family
Food & Wine
Health & Fitness
Hobbies & Crafts
Home & Garden
Money
News & Politics
Relationships
Religion & Spirituality
Sports
Travel & Culture
TV & Movies

dailyclick
Bored? Games!
Nutrition
Postcards
Take a Quiz
Rate My Photo

new
European Travel
Action Movies
Bible Basics
Houseplants
Romance Movies
Creativity
Family Travel


dailyclick
All times in EST

Autism Spectrum Disorders: 4:00 PM

Full Schedule
g
g Home Ownership Site

BellaOnline's Home Ownership Editor

g

Is a Refinance Right For You?

Guest Author - Rose Mary

When it comes to refinancing a mortgage, the state of the economy or real estate market have little to do with a borrower's decision. Borrowers decide to refinance for a multitude of reasons, some that are good and some that are bad. It really does not matter what everyone else is doing, it should only matter to know if a refinance is right for you.

When economic conditions are healthy and real estate values are high, most people will refinance their existing mortgage in order to take the equity from their home in the form of cash out. The cash can be used for a multitude of reasons such as home improvements, college or even to pay off other debt such as credit cards or automobile loans. Some will even use the money to invest in high yield markets or just keep in savings for a rainy day. For some people, when times are good, refinancing a current mortgage becomes a habit that they will repeat very often. This can become a dangerous cycle since the home, which is the main asset, never gets paid off.

The best reason to refinance an existing mortgage is to take advantage of a reduction in mortgage rates. In order to recognize the most money in savings, there should be a two percent reduction in the rate. Many times when mortgage rates are low, existing borrowers can reduce the term of their mortgage instead so that it is paid off in a quicker amount of time. When going from a high mortgage rate to a lower mortgage rate, a loan term reduction will often result in a similar monthly mortgage payment. Again, the benefit to this is that the equity in the home increases faster and the mortgage is paid off in a shorter period.

Since housing is probably the most expensive bill that most people pay, it is not a bad idea to pay off the mortgage as soon as possible. In the end, there will be more available cash each month when this bill no longer exist. For many people, especially those nearing retirement, this is a cost effective method to financial planning. This is why refinancing a mortgage for the right reason is very important.
This site needs an editor - click to learn more!

Add Is+a+Refinance+Right+For+You%3F to Twitter Add Is+a+Refinance+Right+For+You%3F to Facebook Add Is+a+Refinance+Right+For+You%3F to MySpace Add Is+a+Refinance+Right+For+You%3F to Del.icio.us Digg Is+a+Refinance+Right+For+You%3F Add Is+a+Refinance+Right+For+You%3F to Yahoo My Web Add Is+a+Refinance+Right+For+You%3F to Google Bookmarks Add Is+a+Refinance+Right+For+You%3F to Stumbleupon Add Is+a+Refinance+Right+For+You%3F to Reddit




RSS | Related Articles | Editor's Picks Articles | Top Ten Articles | Previous Features | Site Map


For FREE email updates, subscribe to the Home Ownership Newsletter


Past Issues


print
Printer Friendly
bookmark
Bookmark
tell friend
Tell a Friend
forum
Forum
email
Email Editor


Content copyright © 2014 by Rose Mary. All rights reserved.
This content was written by Rose Mary. If you wish to use this content in any manner, you need written permission. Contact BellaOnline Administration for details.

g


g features
Homeownership is a Responsibility

Should You Own a Home

Protecting Your Identity

Archives | Site Map

forum
Forum
email
Contact

Past Issues
memberscenter


vote
Poetry
Daily
Weekly
Monthly
Less than Monthly



BellaOnline on Facebook
g


| About BellaOnline | Privacy Policy | Advertising | Become an Editor |
Website copyright © 2014 Minerva WebWorks LLC. All rights reserved.


BellaOnline Editor