Mortgage Refinancing- A Quick PrimerArticle Posted by Expert Author: Tony Caro on 04/25/2013
It is becoming increasingly difficult for many Americans families to make timely payments on their home mortgage. For such families, Mortgage Refinancing may be the only way out of this dilemma. The high interest rates and unstable economy have made it mandatory for many to get a new mortgage that replaces the original. This is called mortgage refinancing. It is done to get better interest term and rates for the borrower. The procedure is quite simple. The previous loans are paid off by creating a second loan. It is a great way to convert a variable loan rate to a fixed rate while getting much better interest rates.
Mortgage refinancing is easier for those with a perfect credit history. Borrowers that have bad or even slightly less than perfect credit are considered risky and aren’t given the more favorable terms. Banks and lenders necessitate that borrowers maintain their original mortgage for a minimum of 12 months before they are allowed to refinance. But terms and conditions vary for each lender so it is a good idea to shop around for the best refinancing opportunity. Choosing the original lender for mortgage refinancing is a good idea in many instances, nonetheless. This is because borrowers have better odds of getting better loan rates with their original lenders.
Article Posted In: Understanding the Refinance Process