If you’re considering mortgage refinancing and are thinking about tapping into you’re home’s equity there are more lenders today willing to help you do it. The problem with treating your home as a savings account is that you could wind up underwater like 80% of homeowners with a 2nd mortgage or home equity line of credit. Here’s an article from MortgageLoan.com about the reemergence of home equity lending:
Home equity lending has risen for the first time in five years, according to the credit reporting firm Equifax, while credit card and auto lending has risen as well. New home equity loans increased by 6.6 percent over the past year, the company reported, the first annual increase since 2006. However, the average amount of individual loans is smaller than before, a reflection of the overall decline in home values nationwide.
Being underwater in your mortgage simply means that you owe more than your home is worth…something you don’t want. The risks of being underwater could ultimately result in losing your home. Why take unnecessary risks with your family’s financial well-being?
If you’re thinking about a mortgage refi to take advantage of today’s lowest refinance rates in nearly fifty years there are several things you need to know about the fees you pay for mortgage loan origination and closing costs. The reason fees are so important is that you have to recoup these expenses before breaking even and gaining any benefit from your lower payment amount. The less you pay at closing, the faster you break even.
You can learn more about refinancing without paying unnecessary fees or markup by checking out my free Underground Mortgage Videos.