Home Equity Loan – When Does Refinancing Make Sense?

Written by Charles Essmeier

Forrepparttar last two years, interest rates have been much lower than anytime duringrepparttar 150066 last thirty years. This has resulted in an unprecedented boom in real estate sales, home refinancing and home equity lending, as borrowers try to take advantage of these rates forrepparttar 150067 long term. But refinancing or even borrowing against your home’s equity may not make sense for everyone. When is it a good idea to refinance your home? When is it not advisable?

Traditionally, lenders advised homeowners not to refinance unless doing so would lowerrepparttar 150068 interest rate onrepparttar 150069 loan by 1-2%. While anyone who can save 2% on their interest rate would almost certainly benefit from doing so, others might find refinancing worthwhile even with a smaller reduction inrepparttar 150070 interest rate. Increased competition among lenders has broughtrepparttar 150071 costs of refinancing down in recent years, so homeowners can realize a significant reduction in their home payments with reductions of ½% or so, depending onrepparttar 150072 size of their mortgage.

The key to whether or not refinancing makes sense is how longrepparttar 150073 homeowner intends to remain in his or her home. The costs ofrepparttar 150074 refinancing, which can run $1000-2000, are amortized overrepparttar 150075 life ofrepparttar 150076 loan. For many people, a reduction of $50 or more inrepparttar 150077 house payment would be more than enough to justify a new mortgage. If payments cannot be reduced by at least that much, or ifrepparttar 150078 homeowner plans to live inrepparttar 150079 home only a short while, refinancing may not be a good option.

Refinancing may also make sense for those with Adjustable Rate Mortgages

Refinance Your Home Equity Loan

Written by Carrie Reeder

Refinancing your home equity loan is an excellent way to save money. By refinancing your home equity loan you can lower your interest rate and finance for a longer or shorter term. Some things to consider before refinancing your home equity loan arerepparttar possible tax benefits, how long you intend to stay in your home, what your long term financial goals are, and how could you userepparttar 150037 money to benefit your family. Refinancing your home equity loan is a great way to save money each month.

A home equity loan is a great way to getrepparttar 150038 cash you need and lower your monthly payments atrepparttar 150039 same time. If you already have a home equity loan you may be able to refinance at a lower interest rate and save money. With one short application you can get several quotes and be pre-qualified by multiple lenders. The quotes are free and there will be no credit check until you selectrepparttar 150040 lender that will offer yourepparttar 150041 best terms. Refinancing your home equity loan could give you extra cash each month and drop your interest rate dramatically. Bad credit, past bankruptcy, and foreclosures are all considered. There are numerous options available in refinancing your home equity loan.

One simple online quote request will give you several quotes from lenders who can design a loan package especially for your situation. If you are a homeowner with an existing home equity loan, consider refinancing to take advantage ofrepparttar 150042 many loan options offered by mortgage lenders. Your quick online quote request will give you quotes from several lenders who can refinance your home equity loan even if you have poor credit. There is no mandatory credit check so you will only have one inquiry on your credit report after you have selectedrepparttar 150043 lender that is right for you.

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