| Even though rates are on the rise, that
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| | consolidate into one loan that would be
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| doesn't mean you shouldn't refinance.
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| | easier to keep track of. Either way,
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| Practically everyone has refinanced or
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| | refinancing into a fixed-rate isn't a bad
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| thought about it at one point in time.
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| | idea. And one payment is easier to make
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| We've seen the dozens of commercials that
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| | on time each month than two.
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| urge us to do it. With rates at record
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| | Those out there with adjustable-rate
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| lows over the past few years, refinancing
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| | mortgages are starting to get a little
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| has helped many borrowers lower their
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| | nervous. Interest rates have been rising
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| monthly payments.
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| | pretty fast. The gap between the rate of
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| But rates are now on the rise.
| |
| | a adjustable mortgage and a fixed
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| Refinancing applications have fallen
| |
| | mortgage has narrowed so much that you
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| slightly. Most people don't think you
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| | really don't save much by taking the
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| should refinance when rates are going up.
| |
| | adjustable mortgage. Many are looking to
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| However, many refinancings are "cash-out"
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| | avoid rising interest rates by financing
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| refinancing. That means that equity is
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| | to fixed-rate mortgages.
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| handed over to the homeowner in return
| |
| | Refinancing can be a good thing. You can
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| for a larger mortgage. Many people need
| |
| | get a fixed rate to counter the rising
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| that cash.
| |
| | interest rates. You can use cash from a
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| Some people are refinancing their homes
| |
| | refinancing to consolidate your debt. You
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| for a "cash-out" because they have a
| |
| | can improve your home. But you should be
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| significant home-equity line of credit
| |
| | careful about taking too much equity out
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| balance. This line of credit has an
| |
| | of your home.
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| adjustable-interest rate, which is going
| |
| | Many advisors warn consumers not to use
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| up on them. They refinance it in with
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| | their homes as personal piggy banks. If
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| their first mortgage at a fixed rate.
| |
| | home prices decline, you could owe more
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| They aren't eliminating the debt, just
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| | than your house would sell for. In a
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| fixing the interest rate and monthly
| |
| | cooling, or slowing, real estate market,
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| payment. If you don't need the revolving
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| | you do not want to be maxed out on the
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| line of credit, you should probably take
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| | equity in your home. If something
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| advantage of the fixed rate.
| |
| | happened and you had to sell, you want to
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| There are many homeowners that piggyback
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| | walk away from the closing table with
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| their mortgages when they are buying.
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| | money, not have to go to it with a check.
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| They end up with one mortgage for 80% of
| |
| | Paying to sell your home isn't how you
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| the value of the home and a second
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| | want to do it.
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| mortgage for 10%. They put the remaining
| |
| | Fixed-rate mortgages are always a good
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| 10% down on the home. Since the first
| |
| | and solid financial choice. Anytime you
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| mortgage is only for 80% of the purchase
| |
| | are looking to refinance, your best
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| price, they avoid having to pay PMI.
| |
| | option is to go with the shortest-term,
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| Many piggybackers have a line of credit
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| | fixed-rate mortgage you can afford.
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| as the second loan. Others simply want to
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| |
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