Who is refinancing their home?
Home refinance has become very popular. Encouraged by rising home values and low interest rates, millions of Americans have been refinancing their homes to pay off credit card bills. According to a recent study by the Federal Reserve, one out of four homeowners who refinanced their mortgages took out larger loans on their homes in order to pay off credit cards and other debts.
What is a home refinancing loan?
A home refinance loan is a secured loan intended to replace an existing loan secured by a home mortgage. This is the most common form of consumer refinancing.
Where do I find a home refinance quote?
LoanShopUSA.com is the leading online marketplace for home refinancing. With more than 1000 participating lenders in our network, we can help you locate one who can help meet your needs. Click here to get your Home Refinance Quote. This is a free service.
When should I refinance my home?
The time to consider refinancing your home is when you need to consolidate your debts. For many, it is a sound way to ease the sting of credit card debt, which averages $13,000 for people who don't pay off their balance each month, according to CardWeb.com. Experts say debt consolidation is a factor in the recent drop in personal bankruptcies and leveling off of credit card debt.
Why should I refinance my home?
There are several reasons to refinance your home. It may be undertaken to:
- reduce interest costs by refinancing at a lower rate;
- pay off other debts;
- reduce one's periodic payment obligations sometimes by taking a longer-term loan;
- reduce risk, such as by refinancing from a variable-rate to a fixed-rate loan; and/or
- liquidate some or all of the equity that has accumulated in real property during the tenure of ownership.
How do I refinance my home?
It is advisable to speak with a financial professional, familiar with your existing home loan, before deciding to refinance. Certain types of loans contain penalty clauses that are triggered by an early payment of the loan, either in its entirety or a specified portion. Also, some refinanced loans, while having lower initial payments, may result in larger total interest costs over the life of the loan, or expose the borrower to greater risks than the existing loan. Calculating the up-front, ongoing, and potentially variable costs of refinancing is an important part of the decision on whether or not to refinance. There are several dedicated credit counselors on the LoanShopUSA.com network and we can help you locate a credit counselor who can help meet your needs.
Click here to get your Home Refinance Quote! 