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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
MGM says not for sale but mulling options - MSN MoneyCentral
LOS ANGELES (Reuters) - Hollywood studio MGM said on Monday it was not for sale but is exploring "enhancements" to its long-term capital structure that could include a stock offering or debt refinancing. The move comes as Hollywood struggles to raise ...
Read more...Merrill, Wachovia Hit With Record Refinancing Bill (Update1) - Bloomberg
Aug. 26 (Bloomberg) -- Merrill Lynch & Co. , Wachovia Corp., Lehman Brothers Holdings Inc. and the rest of the U.S. finance industry are about to find out how expensive credit has become. Banks, securities firms and lenders have a record $871 billion ...
Read more...Home values dip - Baltimore Sun
Maryland home values dropped 4 percent in April through June compared with the same period a year earlier, according to figures that track sales and refinancing. The Office of Federal Housing Enterprise Oversight said yesterday that the drop was the ...
Read more...Overdue mortgage payments on rise, says study - Financial Times
Strains among borrowers with patchy credit are rising, with more falling behind on their mortgages and fewer able to refinance their higher interest rate loans, according to a report by Standard & Poor's, the credit rating agency. The report into the ...
Read more...Merrill, Wachovia Hit With Record Refinancing Bill - Daily Business Review
errill Lynch & Co., Wachovia Corp., Lehman Brothers Holdings Inc. and the rest of the U.S. finance industry are about to find out how expensive credit has become. Banks, securities firms and lenders have a record $871 billion of bonds maturing ...
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