Mortgage Loans -Refinancing Your Mortgage is on the Rise
Long term mortgages rates are remaining relatively low. The average rate for a thirty year loans is approximately 6.2%. Since home equity loans and lines of credit have their interest most often tied directly to the prime rate, they have gotten more expensive since the prime is now over eight percent.
Many customers prefer to have a fixed rate loan than risk their economic future on fluctuating rates that can continue rising in the future. Freddie Mac says 89% of the loans it owns that were refinanced in the third quarter of 2006 had amounts at least five percent higher than the original mortgage balances.
According to the American Bankers Association, the dollar amount of home equity loans has increased by an annualized 14.6% for the first three quarters of 2006. This includes both home equity loans and home equity lines of credit.
Before you consider refinancing, you should look for the most economical way to accomplish this. You should also consider if refinancing to take additional cash is a wise move. If refinancing gets you a better rate and it has been a long enough period of time since your last change, then perhaps it is a good move.
If you have credit card debt, it is often financed at a much higher rate than you can obtain with a loan connected to your real estate. Sometimes you can obtain a fixed rate loan for a home equity line that will help you reduce your loan expense.
Consider the fees it takes to accomplish new financing and the time for repayment of the new debt. I personally am working on paying off my current mortgage with a Mortgage Payoff program.
Many customers prefer to have a fixed rate loan than risk their economic future on fluctuating rates that can continue rising in the future. Freddie Mac says 89% of the loans it owns that were refinanced in the third quarter of 2006 had amounts at least five percent higher than the original mortgage balances.
According to the American Bankers Association, the dollar amount of home equity loans has increased by an annualized 14.6% for the first three quarters of 2006. This includes both home equity loans and home equity lines of credit.
Before you consider refinancing, you should look for the most economical way to accomplish this. You should also consider if refinancing to take additional cash is a wise move. If refinancing gets you a better rate and it has been a long enough period of time since your last change, then perhaps it is a good move.
If you have credit card debt, it is often financed at a much higher rate than you can obtain with a loan connected to your real estate. Sometimes you can obtain a fixed rate loan for a home equity line that will help you reduce your loan expense.
Consider the fees it takes to accomplish new financing and the time for repayment of the new debt. I personally am working on paying off my current mortgage with a Mortgage Payoff program.
posted by Nan at 11:21 PM
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