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Low Refinance Rate Article
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Most of us find ourselves taking out a loan at one time or another in our lives, whether it's for a home, a car or personal reasons. At the time we take out the loan, it's usually set for some many months with monthly payments due on a certain day. The amount of the monthly payments is based on the current interest rate we're charged on the principal balance we borrow. Often, during the term of the loan, we find ourselves refinancing the loan for one reason or another. The main reason why people do refinancing is usually for a better interest rate, specifically if the loan is a home mortgage. With a home mortgage loan, refinancing for a lower interest rate can make a substantial difference in the total balance of our loan.
from:Lower interest rates are the most common reason for refinancing mortgage loans, but they are not the only reason for refinancing. When banks lend money for the purchase of a home, they will usually only borrow up to 80% of the value of the home (known as equity). For instance, if a home is valued at $100,000, the maximum amount the bank will borrow is $80,000. As time passes, the balance of the loan decreases while the equity of the home increases. Often home owners need extra cash for remodeling or other personal reasons so they choose refinancing by using the equity of their home as collateral.
An example of this method of refinancing would be that same $100,000 home. After a couple of years, the loan balance may be down to $70,000 while the value of the home may have increased to $120,000. In this scenario, the bank will borrow up to 80% of the home's value, which would be $96,000. This amount is $26,000 more than the borrower owes on his mortgage so they are eligible for $26,000 cash out. Refinancing of home mortgage loans is very popular for this reason.
While home mortgage loans are the loans that are most often refinanced, refinancing is not limited to just mortgages. Many borrowers take out loans when they purchase a car. A lot of people like trading their cars off in a couple of years to get a newer model. Many times the first car loan is not paid off, so they do refinancing of their first car loan and add it to the new car loan. Another reason is for additional cash for personal reasons. As long as the collateral of the loan (car, etc.) is worth more than the balance of the loan, banks are more than happy to help with refinancing, if the payments have been made on time, of course.
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Low Refinance Rate News
Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance - MarketWatch (press release)
 International Business Times | Realtors(R) Offer Support for Bill to Help Responsible Homeowners Refinance MarketWatch (press release) NAR supports the "Responsible Homeowner Refinancing Act" because it offers relief to responsible homeowners who have good credit and consistently meet their mortgage obligations, but who have been unable to refinance into lower interest rates because ... Are Record-Low Mortgage Rates Hurting The US Housing Market? Freddie Mac: 30-year mortgage rate down a tick at 3.78% 30-year mortgage rate hits another record low |
Record-low mortgage rates spur refinancing - The Hill (blog)
 New Zealand Herald | Record-low mortgage rates spur refinancing The Hill (blog) By Vicki Needham - 05/23/12 09:48 AM ET Record-low mortgage rates spurred the third straight increase in refinance applications last week as the housing finance market starts to rebound. Overall, mortgage applications increased 3.8 percent for the week ... MBA Weekly Survey: Refinance Applications Increase Because of Record Low ... Time to Refinance While Mortgage Rates are So Low Record Low Mortgage Rates Fuel Third Consecutive Increase In Refinance ... |
Real estate industry pushes Senate on refi bill - MarketWatch
Real estate industry pushes Senate on refi bill MarketWatch Appearing before the Senate Banking Committee, Mark Zandi, chief economist and cofounder of Moody's Analytics, said lawmakers must act quickly because “mortgage rates are very low, and this is such a good time to refinance. Mortgage Q&A: Borrowers hit by mess others made Don't HARP on it, refinance program too good to pass up HARP 2.0: Good News For Home Owners Who Are Upside Down |
Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances - FreeRateUpdate.com
 Eastern Morning Herald | Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances FreeRateUpdate.com Low mortgage rates remain stable and are attracting borrowers to mortgage refinances in larger numbers. According to the Mortgage Banker's Association's Weekly Mortgage Applications Survey released yesterday, mortgage applications increased 5.6% for ... Refinance Applications Increase in U.S. for Third Consecutive Week, Driven by ... Mortgage Rates Today: Wells Fargo, PNC Bank and KeyBank Refinance Rates for ... No Drop in Refinancing Expected |
Cascade County to refinance general obligation bonds for lower interest rates - Great Falls Tribune
Cascade County to refinance general obligation bonds for lower interest rates Great Falls Tribune Cascade County Commissioners voted 3-0 Tuesday to refinance $3.3 million in general obligation bonds to take advantage of historically low interest rates and reap interest savings. The bonds were originally sold to finance improvements to entertainment ... |