- Slide 1 of 16
7 pros and 7 cons to refinancing
Anyone who borrowed money for real estate this year may want to frame their
interest rate on the wall. To boost the economy, the Federal Reserve has taken
steps to help drop rates on 30-year-fixed loans from about 6.5% four years ago
to historic lows in recent months. Millions of people who can borrow are jumping
at the chance, taking out new home loans and refinancing existing mortgages.
Here are the benefits and costs of replacing your current loan now.
Banks are struggling to keep up with demand — it
takes the biggest lenders an average of more than 70 days to finish a refinance,
according to a story in The
Wall Street Journal. But the long wait hasn't deterred many homeowners.
Money management and real-estate experts agree that for many homeowners,
refinancing is a great idea, but there are risks to consider. A borrower's job
prospects, the age of their current mortgage and their credit situation all
affect whether getting new loan terms make sense.Here are the benefits and costs of replacing your current loan now.
- Video: Lock in mortgage rate now?
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11Comments
4 hours ago
You make no sense. Mortgage deduction begins
to phase out if you fall under the alternative minimum tax and for that you have
to be at the 28% tax bracket (you making a lot of money) the most you can save
is 28% on your deduction and Obama has nothing to do with this. These are Old
tax laws established in 1964 Check you history to find out why mortgage
deduction where allow to begin. You will be surprise to find out this was a
give. You refinance to lower you monthly payment not to make money out of
taxes.
5 hours ago
Say your 7 years into a 30 year mortgage on a
hundred grand home. Say your payment is $1000 per month. So after 7 years you've
got $84,000 paid in to your home. Now lets say you want to refinance but after 7
years and $84,000 dollars the principal on your loan is still $94,000 because
the interest payment is up front. Now you have a new 30 year mortgage for
$94,000 and start all over from scratch. So essentially you've just paid
$84,000 to pay off $6000 that you will never recover. Refinancing is just
another scam to take more of your money.
6 hours ago
7 hours ago
7 hours ago
Be careful because depending upon the Loan, especially an Obama
created or sponsored loan...YOUR GONNA LOSE A LOT OF MONEY especially if you
have been able to get a refund each year based on your Mortgage deduction on
your taxes...meaning you lose your Mortgage Deduction.. I just looked into it
and here is what I found, The Bank made nearly $4000.00 in fees, the Government
got to keep ALL my Mortgage Tax Deduction and I saved $200.00 a month but paid
higher taxes on my income which diluted that $200 savings to almost nothing. So
basically The Government Got money the Bank got money and I got
screwed....typical event with this Administration and all their Plans..We the
taxpayers get screwed,,same with Obama care, The Insurance Company Executives,
Pharmaceutical Companies and some Hospitals will make money,,,It will cost an
average family of 4 upto an extra or additional $20,000.00 a year...There is NO
SAVINGS..
7 hours ago
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- Slide 1 of 16
7 pros and 7 cons to refinancing
Anyone who borrowed money for real estate this year may want to frame their
interest rate on the wall. To boost the economy, the Federal Reserve has taken
steps to help drop rates on 30-year-fixed loans from about 6.5% four years ago
to historic lows in recent months. Millions of people who can borrow are jumping
at the chance, taking out new home loans and refinancing existing mortgages.
Here are the benefits and costs of replacing your current loan now.
Banks are struggling to keep up with demand — it
takes the biggest lenders an average of more than 70 days to finish a refinance,
according to a story in The
Wall Street Journal. But the long wait hasn't deterred many homeowners.
Money management and real-estate experts agree that for many homeowners,
refinancing is a great idea, but there are risks to consider. A borrower's job
prospects, the age of their current mortgage and their credit situation all
affect whether getting new loan terms make sense.Here are the benefits and costs of replacing your current loan now.
- Video: Lock in mortgage rate now?
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