Mortgage Refinance

Mortgage Refinance

With recent favorable interest rates, a mortgage refinance is one of the hottest trends. With refinancing, now a mortgage isn't just a way to purchase a house, but it's a credit source that can be managed in a variety of ways:

To leverage today's low mortgage rates.
To fund college tuition or other major life-improving expense.
To provide a relief from bills with debt consolidation.

Consider a mortgage refinance vs. taking out a home equity loan if you can secure a an interest rate lower than the rate you currently are paying on your mortgage. You'll pay less over the lifetime of your mortgage. When analyzing if mortgage refinancing is right for you, remember:

First mortgage rates are generally lower than a home equity loan interest rate, so refinancing can save you money. It also helps if you need money. For example if you owe $100,000 on your current mortgage, you can borrow $150,000 (if your house is worth enough to support this size of loan), and then use the difference for major expenses.
When a mortgage refinance, you can incur $2,000+ more in closing costs than a home equity loan or credit line.
If your first mortgage has an extremely low rate, a home equity loan may be a better alternative than refinancing.

When comparing rates, contact a number of lenders - and you may want to also ask your current mortgage holder, but contact this lender last. There is an advantage of refinancing with your current lender, as they may be able to cut some of the closing costs. In the best scenario, your lender may be able to lower your current interest rate without refinancing. But because you're already a customer, your current mortgage lender doesn't have the same motivation to give you the best deal. Take your best deal to your current lender and see if it can be beat. But do it on the same day so you can lock in the most favorable mortgage refinance.

To get quotes on a mortgage refinance for your home, please click here to get rate quotes and information from multiple vendors.