If you are a homeowner with a poor credit rating, you may think refinancing to a lower interest rate is out of your reach. Years ago, a poor credit rating would prevent you from financing your home. Today however, mortgage lenders are desperate to keep the housing boom alive, and you can take advantage of this to improve your credit and your monthly payment. You can lower your monthly payment and cash out equity in your home at closing to pay off other high interest debt.
If you are a homeowner with an adjustable rate mortgage you should consider refinancing now to a fixed interest rate mortgage. This is doubly so if you financed your home with an interest-only or option mortgage. If you are under one of these risky mortgages, financial disaster could be waiting for you around the corner with today’s market and economic conditions. The Federal government is even warning lenders and consumer groups about the dangers coming for homeowners.
For most people this is the best time to refinance a mortgage. Interest rates are still at historically low levels, making it an excellent opportunity to refinance to a fixed rate mortgage. Additionally, refinancing could help you eliminate the additional expense of private mortgage insurance if you are currently paying it. In order to find the best deal for your refinancing dollar, you need to do your homework and understand the industry and how mortgages work. Our free guide to mortgages and mortgage refinancing will teach you mortgage terminology, help you understand how the market influences interest rates, and how to negotiate with your lender to get the best deal for your individual situation. Mortgage lenders know what their doing, that’s their business…Shouldn’t you?
To learn more sign up for our free guide: “Five Things You Need to Know Before Refinancing Your Mortgage.”
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
