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Life Time Refinance Article
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Refinance is a term used in the banking institution. A refinance takes place when a borrower wants to take out another loan to pay off a current loan, usually with different terms. The most common refinance is that of a home mortgage. Many home mortgages are taken out as an A.R.M, which is an adjustable rate mortgage. With an adjustable rate mortgage, the interest rate fluctuates along with the current market rate. In other words, when the current market rate goes up, the interest on your loan also goes up whereas if it goes down, so will your interest rates go down.
from:In some circumstances, this can work to a borrower's advantage. However, when the stock market is shaky, an A.R.M. can put a borrower at a very high disadvantage. When the current market rate goes up and causes your interest to go up, this often causes your monthly payment to go up. Many borrowers will use this opportunity to refinance their home either at a different lending institution or at the same one but with different terms.
Another type of home mortgage is an amortization that is ballooned. For instance, they interest rate is fixed at a certain percentage and amortized for 20 years, but the loan is ballooned for 3 years. At the end of the 3 years, the loan comes up for renewal so the borrower will have to refinance for another 3 years or whatever length they and the lender agree upon. Sometimes, the lender and borrower will do what is referred to as a "straight renewal" where the terms such as interest rate and payment amount stay the same, but the loan is just extended for another length of time.
Many times borrowers refinance their home mortgage to consolidate their other debts as part of their loan. It's like a new loan because additional funds are given out, yet the home mortgage part of it is a refinance.
Although home mortgages are the most common type of refinance, they are not the only type of loan that can be refinanced. An auto loan, personal loan or any type of loan can be a refinance. The reasons may be to add additional funds, to get better interest rate, to switch lending institutions or because the term of the loan is up. When you do refinance any type of loan, always shop around for the best interest rates and terms. Just because you're getting the loan from your own bank isn't a guarantee that you are getting the rest deal. Banks will often give new customers better rates as a way to draw in new business. If this happens with you, you may be able to use this as leverage with your bank to be competitive.
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Life Time Refinance News
School district refinances bonds - Contra Costa Times
School district refinances bonds Contra Costa Times By Damin Esper The Albany Unified School District has refinanced outstanding bonds to reduce interest rates and save taxpayers almost $2 million over the life of the securities. "We're very pleased," Superintendent Marla Stephenson said. |
The Truth About Mortgage Refinancing Revealed by Georgia Mortgage Expert - SBWire (press release)
The Truth About Mortgage Refinancing Revealed by Georgia Mortgage Expert SBWire (press release) But before you sign on the dotted line, there are a few things you should know about the way refinancing works so you don't make a mistake that could wind up costing you big time. "With refinancing as popular as it is right now, Georgia residents have ... |
When Does It Make Sense to Refinance? - MarketWatch (press release)
 Brisbane Times | When Does It Make Sense to Refinance? MarketWatch (press release) The big question: When is the right time to refinance? "Many borrowers have the opportunity to reduce mortgage payments at a time when expenses such as gas and healthcare are rising," said Ray Brousseau, executive vice president of Carrington Mortgage ... The Case for Refinancing The Truth About Mortgage Refinancing Revealed by Kansas and Missouri Mortgage ... Fixed rate doesn't outsmart the market |
Are Record-Low Mortgage Rates Hurting The US Housing Market? - International Business Times
 International Business Times | Are Record-Low Mortgage Rates Hurting The US Housing Market? International Business Times As these margins have dropped, banks have become more reluctant to make loans, especially given the risk of a time-consuming and expensive foreclosure process. Already, banks are more cautious after being burned by subprime loans, so low margins ... |
Breaking refinance bottleneck would do a world of good - Chicago Tribune
Breaking refinance bottleneck would do a world of good Chicago Tribune What if at the same time, you could make it easier for people now living at the margins to stay in their homes? For the last two years, mortgage interest rates have been falling to the lowest levels in 50 years. Indeed, this past week, 30-year fixed ... |