Refinance Mortgage Home Loan
Refinance for more than the balance remaining on your
old mortgage, i.e. tapping your home equity, or "cashing
out." Thanks to favorable rates, you should be able
to do so without boosting your monthly bills. For example,
at 8.5%, the payment on a $200,000, 30-year fixed-rate
mortgage is $1,538. But at 7.5%, that same payment lets
you borrow nearly $20,000 more.
One of the best uses for the extra cash you can get through
refinancing, is to pay off any higher-rate loans you might
have.
Let's say you have a $15,000 auto loan at 10% and are
making minimum payments on a $10,000 credit-card balance
at 17%. Your monthly payments on those debts would total
$680. Then you refinance your mortgage, taking out an
additional $25,000 to pay off your car and credit card,
Result: At 7.5%, your additional monthly mortgage payment
would total only $175, so you would come out $505 ahead
($680-$175=$505).
Sure, all the extra cash needn't go for paying off debts.
When the Wilsons' swapped their ARM for a fixed-rate last
December, they also increased their mortgage load by $34,000,
from $106,000 to $140,000. They used $3,000 of the proceeds
to pay their refinancing costs and another $17,000 to
pay off a 10% home-equity loan that had been costing them
$250 a month. Then they spent the remaining $14,000 to
build a garage for Bill's boat - and they did all this
for just another $19 a month...and Now the ADDED BONUS!!
This addition to their house also increased the home's
overall value!!
So you can plainly see why it makes sense to refinance
your home mortgage, consolidate your debts, and make home
improvements!
Begin
Your Refinance Quote by Clicking Here
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