Houston Refinance
Refinancing in Houston area
Archive for December, 2009
Houston Refinance 101
Dec 11th
Refinancing 101
What is refinancing?
Refinancing applies to your original mortgage loan when you are replacing it with a new mortgage loan. Refinancing your mortgage can give you more options such as monthly payments, changing the term of the loan terms as well as rates. When you refinance your mortgage loan there are certain pros and cons that you need to be aware of.
Why refinance your mortgage loan?
Refinancing your loan, depending on the comparisons between original loan and the new loan, you can have lower monthly payments, short or longer terms and lower interest rates. Depending on the market mortgage interest rates, it would be wise to refinance because it would save you money. Here are the T0p 5 reasons to refinance.
How do I find out if I need to refinance?
Generally when to refinance depends on measuring the costs and savings of refinancing. The cost of refinancing is usually 2%-6% of your loan amount. If you can save more than 6% of your loan amount by adjusting the length of the loan terms and lowering interest rates, you will benefit from refinancing. However, there are other factors to consider besides loan terms and interest rates. Sometimes there are penalties and fees that would be involved in switching the loan. Make sure you read the terms and conditions of your current loan and the new loan you are considering.
Mortgage Rates Rose Slightly But Still Within Record Lows
Dec 11th
Mortgage rates moved up slightly this week but remain within striking distance of record lows. The average 30-year fixed-rate mortage rate is 5.04% according to bankrate.com. On larger jumbo mortgages the average rate is 6%. Don’t be fooled by the lower adjustable-rate mortgages. For example, the current adjustable-rate is 4.55%. Even though the adjustable mortgage rate might be slightly lower, the mortgage rate will only last 5 years. After 5 years there might be a significant monthly payment increase and it might wreak havoc on your budget because of a reset on the rates. For most home owners fixed-rate mortgage are where the value is because they lock in affordability for a longer period of time. If you currently have adjustable-rate mortgage, refinancing should be an option to consider. Refinancing will give you a fixed payment and might lower your cost in the long run.
