Well, that depends on the borrower, the loan, and other factors. However, most people will find that refinancing a home loan now, will probably save them a lot of money. Here are some reasons it may be a good idea to get a mortgage refinancing today.
Many homeowners are struggling financially and keeping up with their monthly mortgage payments is difficult, sometimes impossible, to do. In the past, homeowners in this situation did not have much wiggle room with banks and lenders due to the economy, and housing market, being in good overall shape.
Now though, things have changed and many homeowners from all across the country are struggling financially. The housing market has not picked up as anticipated and things are still quite slow overall. As a result of this though, many homeowners, with a good or bad financial situation, may still benefit a lot by refinancing their home loan.
This is true because it is not a rare occurrence for banks to encounter a homeowner having financial problems these days. Many people have already lost their homes, and many more are still in foreclosure or will soon be facing it. The housing market has not picked up and banks are feeling the pinch of having a lot of properties on their hands that they are unable to sell at a profit.
That is why mortgage interest rates are so low right now. Between government housing stimulus packages and record low interest rates, many homeowners can easily shave a few interest points off their current home loan and save themselves a lot of money in the process.
Interest rates are well below 3.5% for a 30 year fixed rate mortgage right now, and many homeowners are easily paying 2% more than that currently, or more. Plus, banks and mortgage lenders are easing some of the restrictions they had in order to allow more struggling homeowners the chance to refinance, save money, and prevent a foreclosure.
The banks do not want more properties to have to deal with and are much more eager to work with homeowners in nearly any financial situation get a better deal on their home loan through refinancing.
While refinancing a home loan may not be a good idea for all people, it is something to be considered for a lot of homeowners. Saving 2% or more in interest rates would equal a lot more extra money every month. Plus, many foreclosures would be avoided and homeowners would be able to make their loan payments now, and in the future.
Everyone has a different situation and the outcome will be different for a lot of people. It is best to take your time, review your finances and goals, and contact a professional mortgage agent or lender and then shop around.
By Martin Fisher