Want the Facts on Refinancing?

With home refinancing, you can get rid of your existing mortgage and acquire a better loan with new provisions and terms. A refinance can be beneficial in several ways. Your current (first) mortgage could have ceased to be of advantage to you and you wish to get a new mortgage with improved terms.

Your present mortgage may be one that is going to soar up and increase drastically, which would be a good call for a refinance. If you find yourself in need of a refinance, take caution. There are a lot of lenders out there who look to take advantage of refinancers. Some lenders are quick to abuse the ignorance of families who rush into refinancing without preparing as they should. By refinancing without a fine understanding of where their finances stand, a family that refinances their mortgage with the wrong lender can easily be taken for tens of thousands of unnecessary dollars.

This shows the importance of understanding the refinancing process to avoid being tricked by lenders.
When considering a refinance, you should not just look at the interest rate. The first consideration with ANY loan is always the term of the loan, or how much time it actually takes to repay the loan. As you are in debt for more and more years, the amount of money you actually pay grows larger and larger exponentially. For example, on a $100,000 loan, customer focused on lower interest rates would instinctually grab at a 8% loan that is a 30-year term. At the end of those 30 years you would have paid $262,000 to pay off the $100,000 debt. Compare that to the 10% loan at 15 years, which would have cost only $168,000 to pay off the $100,000 debt.

It is mathematical fact that the longer you are exposed to a debt, the more you pay exponentially! That is why interest rate should be secondary in making your decision to refinancing a mortgage.

Short term refinance loans usually have a lower total interest cost but higher monthly payments. You must also consider if a fixed rate or an adjustable rate mortgage does your situation the most benefit.Fixed rate mortgage are more secure because the monthly payments usually do not change (making them more predictable), while an adjustable rate mortgage's monthly payment will change frequently after an initial period.
Insider's secrets lender's DON'T want you to find out about Refinance First Mortgage....

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