According for the Mortgage Bankers Association, 2009 will start to see the amount of mortgage refinances rise from about $850 billion to over $9 trillion. The economic crisis has affected everyone in a way or another some have had their salaries decreased, others are looking in a salary freeze and several families that had two incomes are actually trying to produce ends meet with only one. Although even living inside a cave in Afghanistan you'd still know that the economy sucks! So over the previous couple of years, people have lost a great deal of money and assets and ran their credit into the ground.
If you answer yes to any or all 4 questions, then it can be a no brainer to refinance using a reputable bank. Refinancing will result with the idea to lower payments you must pay monthly, or perhaps a shorter loan term to repay the entire money you owe. Our increased loan payment put stress on our budget which was uncomfortable at times. Not everyone refinance their mortgage with the goal of spending less by paying down their mortgage early.
If you are taking out an interest-only loan, you have the option of applying some months of your mortgage repayments to just the interest amount of your house refinancing loan. Even if you have good credit, expect to be rejected by some mortgage lenders. For example, if your home may be worth $100,000 and you will still owe $60,000 on your own mortgage, then your property equity is $40,000 or 40%.
Can you lower your rate by no less than 2%. However, you should not be afraid to search around at other banks