| "body"> | | | | a great alternative. High interest credit cardsare |
| Reducing consumer debts will ease anxiety and | | | | difficult to eliminate. Unless you are able to make |
| open the door for betterrates on a home loan or | | | | large payments,it may take ten to twenty years |
| mortgage. Unfortunately, becoming debt-free isa | | | | to payoff a $2,000 credit card balance. |
| long process, and it may take several years to | | | | Moreover, a new mortgage is great for acquiring |
| achieve this goal. Ifyou own a home, refinancing | | | | funds to make homeimprovements, build a |
| your existing mortgage - even with poorcredit - | | | | savings account, or plan for retirement. |
| may present extra cash to payoff high interest | | | | Homeownerswith poor credit may increase their |
| credit cards. | | | | credit rating upon reducing oreliminating consumer |
| What Does it Mean to Refinance a Home | | | | debts. |
| Mortgage? | | | | When is the Best Time to Refinance? |
| Refinancing a home loan is an everyday practice. | | | | For many homeowners, now is a good time to |
| There are severalreasons to contemplate a | | | | refinance their currentmortgage. Individuals who |
| refinancing. For starters, if you attain acash-out | | | | obtained home mortgages before rates began |
| refinancing, the mortgage company will hand over | | | | todecline are likely paying two or three |
| a lump sum of moneyat closing. Prior to this, | | | | percentage points above the currentaverage. |
| homeowners apply for a new home loan, | | | | Refinancing for a lower rate may decrease your |
| whichreplaces the old. In addition to creating a | | | | mortgagepayment. Moreover, refinancing may |
| new mortgage, homeownersalso borrow money | | | | eliminate private mortgage insurance. |
| from their home's equity. For example, refinancing | | | | With low mortgage rates, refinancing for a fixed |
| anexisting $125,000 mortgage, and borrowing | | | | rate or interest-onlyoption may be favorable. |
| $25,000 of the home's equitywill produce a new | | | | Before refinancing, count the costs. |
| mortgage of $150,000. | | | | Remember,refinancing will entail paying closing |
| Advantages of Refinancing an Existing Mortgage | | | | costs. If the monthly savingsare insignificant, or |
| If your intent is to become debt-free in the | | | | you plan on moving in less than five years, youwill |
| shortest amount of time,refinancing your home is | | | | not benefit from a refi loan. |