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Refinancing Article
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Mortgage Refinancing is becoming more and more common today with the rising costs of buying or maintaining a home as well as the fluctuating interest rates. When we take out a mortgage to purchase a home, most of us feel it will be a one-time mortgage that we'll be paying on for a specific number of years until it's paid off. Mortgage refinancing is usually not something we're thinking of at this time. However, many individuals and couples choose mortgage refinancing as an option for lower interest rates or to get additional cash out of the equity of our home.
from:Banks and lending institutions probably do as many loans for mortgage refinancing as they do for new mortgage loans today. Our homes are probably the only asset we own that doesn't depreciate and lose value through the years. When we take out our original mortgage, we are borrowing on the value of the home. Most banks, however, will only borrow up to 80% of the value of the home. This is to protect them in the case of a foreclosure. If for some reason, you couldn't make the payments and they have to repossess the home, they are guaranteed getting their money back. Homes that are repossessed by banks are generally put up for auction. Unfortunately, they aren't always sold for their full value and the banks don't always get back all their money. With economy as shaky as it is today, unfortunately many couples are losing their homes to foreclosure.
Foreclosure is not good for the lender or the borrower because it costs both of them a lot of money in legal fees and court costs. For this reason, lending institutions will usually work with you as much as possible to help you save your home. Mortgage refinancing is usually the first recommendation they'll make to you as an effort to help you get ahead. Most people don't reach this point until they've had the mortgage for a few years so their loan balance has decreased while their home value has increased. Mortgage refinancing gives them a chance to get in a better financial situation.
Most people that reach this point are heavily in debt with other bills besides their mortgage. Mortgage refinancing gives them the opportunity to pay off their current mortgage, get extra cash to pay off additional debts and, often, lower their monthly payments. With the other debts paid off, these are monthly payments they'll no longer have to make, allowing them to only have their mortgage payment to make. When they do mortgage refinancing, they usually will extend the life of their loan as well. When their financial situation is better and their credit rating has improved, they have the option of mortgage refinancing again to lower the term of their mortgage.
Refinancing Specific links
Refinancing News
Obama presses Congress on home refinancing - USA TODAY
 Los Angeles Times | Obama presses Congress on home refinancing USA TODAY By Richard Wolf, USA TODAY President Obama is urging Americans to press Congress to pass his latest home refinancing plan -- something he admits will be difficult to do. "In order to lower mortgage payments for millions of Americans, we need Congress ... President Obama: A plan to help responsible homeowners Obama pushes plan to help 'responsible' homeowners refinance Just a hand |
Refinancing: Time to Act? - Wall Street Journal
 Wall Street Journal | Refinancing: Time to Act? Wall Street Journal By JESSICA SILVER-GREENBERG Mortgage rates have been hovering at historical lows for months—but some homeowners are waiting for even better deals before they take the plunge and refinance. Associated Press Townhouses in Beaverton, Ore. With Rates This Low, Should You Refinance Again? 85 Percent of Refinancing Homeowners Maintain or Reduce Mortgage Debt in ... Refinancing bad for business? |
An Easier Path to Refinancing - New York Times
 Credit Union Times | An Easier Path to Refinancing New York Times It is only a first step toward healing the economy's biggest open wound, but President Obama's new mortgage refinancing plan could provide considerable relief for millions of homeowners shackled to high interest rates. The New Refinance Programs: will they help the Arizona Economy? Rewarding Homeowners for Good Behavior Halfway home |
Report: Debt may hamper refinancing for gaming companies - Las Vegas Review - Journal
Report: Debt may hamper refinancing for gaming companies Las Vegas Review - Journal Inc. and CityCenter Holdings LLC could face challenges refinancing their debt, according to a new report by Moody's Investors Service. » Buy this photo By Chris Sieroty Things are looking better for Las Vegas these days -- visitor numbers, ... |
Clothing retailer Musto to refinance its debts - Telegraph.co.uk
 Telegraph.co.uk | Clothing retailer Musto to refinance its debts Telegraph.co.uk Outdoor clothing specialist Musto is set to become the latest retailer to refinance its debts as the consumer economy continues to disappoint. The company is pinning its hopes on Europe in particular with subsidiaries in Italy and Spain and is seeing ... |