4 Good Reasons to Get a Refinance Home Loan

Sunny Jul 15, 2007

Refinance Your Home Now and Lower Your Interest Rate

What is a refinance home loan?
A refinance home loan or a home loan refinance is a new loan obtained through your lender or a new lender to pay off existing loan. However, you may opt to apply for a lower interest rate and or cash out on your homes equity.

When should I refinance my home? It is a known fact that interest rates are lower than they have been in years. This is due to our fast paced and ever changing economy and market. Now would be the perfect opportunity to refinance your home to obtain a lower interest rate. Even a .25 difference can save you thousands of dollars a year in mortgage payments.

Why should I refinance my home?
There are several reasons home owners decides to refinance. The four most common reasons include:

To obtain a lower interest rate
Home owner generally are aware of interest rate down fall. They take advantage of this opportunity by applying to a refinance loan to lower their existing interest rates and save money on mortgage expenses. The money that a borrower saves on mortgage expenses can be invested in other financial investments.

To receive a refinance cash out
Some home owners who have enough equity accumulated in their homes refinance to cash out their equity and get a lower interest rate

To make home improvements
Sooner than later you will find that maintaining your home is hard work (not to mention quite expensive). In most cases, home owners will pursue a refinance, rather than a personal loan, in order to save on interest rates. A personal loan may have higher interest rates and are normally, not as large as a home improvement loan.

To change loan programs
A majority of home owner refinance because they are not satisfied with their current loan program. They may be under a 5 year arm, but somewhere down the line they decided they would prefer a 30 year fixed loan. Whatever the reason may be, a refinance home loan will solve the problem.

What are the benefits of refinancing my home?
There are several benefits included with refinancing your home, including:
Your credit may be in better standings then before you purchased your home, now you can refinance and obtain a more suitable loan, with lower interest rates and terms.
Or, you can obtain a home equity line of credit and have cash available when you need it.
With refinance cash out, your lender can consolidate your bills and pay off all of your debt. You will not have to deal with the hassle by yourself.

What are the different refinance loan options?
As with a traditional loan, refinance home loans offer some of the same loan programs, such as:
10/15/30 year fixed
Zero Down
Interest Only
And so on

Where can I refinance my loan?
You can apply for a refinance home loan through your current lender. Or you may search for a new lender more suitable to your financial needs. This search can be done by internet search, flipping through the yellow pages, or consulting with your real estate agent.

(17) Comments

  1. Guest May 21, 2008

    It is very useful to refinance a loan and at a lower interest rate... Imagine that as said above, you can save money an reinvest in something that could actually help you in your future to live a happier life.

  2. Guest Jun 24, 2008

    This is really a nice post regarding home loans. You can find home loans and personal loans very easily these days from online financing portals or from banks directly.

  3. Guest Jul 11, 2008

    As right now iam working in an fx currency trading company could you suggest me some beneficial home loan schemes or plans.

  4. Guest Jul 12, 2008

    Would you like to suggest me some home loan websites ?

  5. Guest Sep 22, 2008

    Very Good Reasons that you have mention. The main question is that, Is home loan getting easy?. Home loans are getting harder than ever to try to close nowadays with all of the changes going on in the mortgage industry. During the refinance boom years of 2002-2007 everybody could get approved on some kind of loan for the most part. Even if you tried to get approved on a normal conventional kind of home loan and could not get approved you could always fall back on a no income no asset loan (NINA) to close the loan. This loan was considered a sub-prime loan and came with higher interest rates but at least it could close.

  6. Guest Feb 14, 2009

    Great post, Sandeep. This is a great quick guide for those who are thinking to get a refinance home loan for the first time. People should be aware of these things before making the financial decisions. In these times, we can not afford to be careless with our loans.

    Larry

  7. Guest May 25, 2009

    Refinancing a home loan can save money or free up existing equity in a home for many worthwhile purposes.A finance broker can save you time and help compare a wire range or home loan options.

  8. Guest Jul 8, 2009

    Well, I hope it may reduce the burden as the new bank can provide some extra benefit in order to attract such customer.

  9. Guest Aug 8, 2009

    Finance Help offers all types of finance solutions for all kind of customers. We have a solution for any problem relating to finance for everybody at any age. Whether you have just started your career in your 20's or you are at the brink of retirement nearing 60's, one can upgrade one's financial portfolio at any stage.

  10. Guest Sep 3, 2009

    Very helpful and elaborated post providing elaborated info.Thanx for sharing it with us,wish to see further contribution from you.

  11. Guest Sep 4, 2009

    nowdays getting loan is not a kids job. Can you suggest how long this recession gonna be there?

  12. Guest Sep 30, 2009

    Be sure that you have a good credit score, if you have credit card balances try to pay it off before going to the bank, it wil save you many thousands dollar on interest over the life of the loan.

    In addition if you have always paid your mortgage on time probably is not a good idea to apply for refinance with your actual lender. Banks and lenders are greedy by nature, if they are making this much money with you right now and you obviously can pay tit hey will have no reason to give you better terms and make less money, but if you apply on another bank they will have to do better than the competition in order to have your business.

  13. Guest Nov 19, 2009

    Thanks for sharing the information.

  14. Guest Feb 19, 2010

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  15. Guest Feb 26, 2010

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  16. Guest Jul 21, 2010

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