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You can find many reasons to refinance a mortgage. From cashing out equity to lowering your interest rate, refinancing might make sense for many reasons. When you're ready to consider refinancing, your first question might be "How much is this going to cost me?" That's a good question. In this latest video we take a look at some of the costs possibly involved in a mortgage refinance.
As a homeowner, you may have given a passing thought to refinancing, or maybe it hasn’t even crossed your radar. But, you may be curious to know – it just might be the right time to think about refinancing. Hi, I’m Crystal Smith with AmeriFirst Home Mortgage. Here we will go over 6 reasons why you might consider refinancing your home mortgage loan.
In 2012 the federal government tweaked a mortgage relief program to help more homeowners. The goal is to assist people who owe more on their home than it's worth, who are paying high interest rates. The hope is to allow these homeowners to refinance into a lower interest rate, regardless of the value of the home. This could save some homeowners a good chunk of change on their monthly house payments. And the program ends this year.
When you refinance a mortgage on your home, you pay off the original mortgage and replace it with a new one. The terms and interest rate on the new loan may be different, but the property securing the loan remains the same. During the recession, many homeowners took advantage of ultra-low interest rates and refinanced their home mortgages. In fact, more than half of all applications for home mortgage loans from mid 2009 to early 2011 were for this type of loan. With interest rates slowly inching upward, refinancings have slowed down considerably. However, there are still some very good reasons to refinance:
Homeowners looking to remodel have a few options for financing the work. Most of the options, though, are more difficult to get in the current housing market. Home equity loans are rare because few homeowners have enough (if any) equity to pay for anything more than an estimate on the home improvements. But there is one financing option out there for home improvements. It's the 203k renovation loan from FHA. Download the FHA 203k Survival Guide here and learn more!
This is a story about how I used the refinance remodel option to get a new kitchen. Once upon a time I wanted a new kitchen. My wife and I looked around our house and realized that we'd be here for a long time, and it was time to invest some money in one of the rooms where we spent most of our time. When friends come over, we end up shooting the breeze in the kitchen. Between food prep, cooking and clean-up we're in the kitchen almost every night for at least a couple hours it seems like. So as we looked around the kitchen that looked like it was built and decorated in the 1980s we decided it was time for a remodeling project. The problem: cost.