| House refinancing is often used to restructure | | | | loan. Often the interest rates at any time are tied |
| your debt obligations. Since loan rates on a | | | | to the prime rates, or the rate charged to the |
| mortgage refinance typically are lower than those | | | | best customers. The rates are also affected by |
| for such loans as credit card debt, medical | | | | length of the loan and the ability or perceived |
| charges or other personal loans from commercial | | | | ability to repay. Generally, the shorter the loan |
| lenders, borrowers often try to restructure their | | | | term, the better the rates that can be expected. |
| mortgages to use equity in the home for paying | | | | Also, the person with a better credit score can |
| down consumer debt for other projects requiring | | | | expect to pay less for the loan than the person |
| significant cash. As with any loan, it's a good idea | | | | who has a poor credit score. |
| to borrow wisely in order to protect your assets | | | | Terms |
| from excess costs and longer terms. Make | | | | Another factor that affects the size of the house |
| certain you check the amount borrowed, the | | | | refinancing loan is how long you expect to take to |
| amount of interest you will pay and whether or | | | | pay off the principal of the loan. Since the amount |
| not the lender is charging excessive fees for loan | | | | of interest paid is the variable factor in the loan, it |
| origination. | | | | stands to reason that if you pay interest for a |
| Equity | | | | longer period, it will cost you more cash overall. |
| The size of your house refinancing loan will | | | | The monthly payment during the period of the |
| depend to a large extent upon the equity that is | | | | loan will be less if it is spread out over a longer |
| available in the subject property. The equity is the | | | | period. |
| difference between the market value or assessed | | | | Fees |
| value of the property and the amount of money | | | | If you have completed a good package for house |
| that is still owed against the original loan. Hopefully, | | | | refinancing, make sure that you will not be |
| the equity is positive rather than negative. A | | | | surprised by the fees and costs associated with |
| refinancing loan on your house takes a portion of | | | | the loan itself. Review and question all the costs |
| the available value of the house in cash. The cash | | | | associated with your loan package. Refuse to |
| is then available to use for paying down debt, | | | | accept unexplained tack-ons or exorbitant fees |
| paying for major needs such as education or | | | | for your loan. In fact, lenders can be in a position |
| property renovation. | | | | of bidding for your business by reducing interest |
| Rates | | | | rates, or by trimming the excess fees and costs |
| A major factor in the cost of your house | | | | associated with your loan. Question each item in |
| refinancing is the rates associated with the loan. | | | | the package and make certain it reflects |
| This is the amount of interest that you can | | | | something that is helpful to you as the borrower. |
| expect to pay initially and over the course of the | | | | |