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The Fast Track to Gaining Equity with Refinancing
When most people think of refinancing, they think of a way to lower
their monthly payments or to get cash out of their homes, but there's
another aspect to refinancing that more and more people are finding out
about and utilizing.
Your home is probably your biggest asset, and the equity in your home
is the key to that asset. If you're paying off at typical 30-year
mortgage, you could be throwing some of that equity, and thousands of
dollars, away. More and more people are finding out that by refinancing
their homes, they can build equity faster and pay of their loans
earlier. With mortgage rates being some of the lowest in history, now
is the perfect time to review your refinancing options and look closely
at what refinancing can do for the equity in your home.
If you can refinance your home at a lower interest rate, but make the
same monthly payment that you've been making, you can save thousands
of dollars in interest, pay your home off early, and build equity
faster than if you had continued to pay at the higher rate of interest.
Some borrowers who qualify may even want to refinance at a lower
interest rate, but take out a 15-year mortgage instead of a 30-year
mortgage.
A 15-year mortgage can save you thousands of dollars. For example,
let's take a $100,000 mortgage with a 7 percent interest rate. If you
were to take out a 30-year mortgage with those terms, your total
payments would equal $239,511 and the total interest you paid would
equal $139,511.
If you took that same exact mortgage amount and interest rate, and took
out a 15-year mortgage, your total payments made would equal $161,789
and the total interest you paid would come to $61,789, saving you
approximately $77,722. Obviously, if the loan amount were higher, and
the interest rate were to decrease when you refinance, you will save
substantially more.
Even if you do not qualify for a 15-year refinance, you will want to
ask the lender to prorate the length of your loan to the amount of time
you currently have left to pay off.
For instance, if you've been paying on your mortgage for 10 years,
ask for a 20-year mortgage instead of a 30-year plan. This will ensure
that your home is paid off in the quickest amount of time possible and
that your equity accrues at an accelerated rate.
See http://mortgage-info-voice.blogspot.com for more info.
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Written by Craig Romero
Discover how to quickly build a minimum of $40,000 worth of home equity
and pay your mortgage off in 10 years or less without making biweekly
mortgage payments. Visit: www.wisemortgageinfo.com
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The Fast Track to Gaining Equity with Refinancing.
