Banking-and-finance

Mortgage Interest Rates Low – Should Homeowners Refinance Now? Mortgage Interest Rates Low – Should Homeowners Refinance Now? If you have been considering refinancing your current mortgage, there may never be a better time than right now. Mortgage rates are historically low, and homeowners are jumping on the refinance bandwagon in record numbers. There are many reasons to consider refinancing your mortgage, and lots of companies out there who are willing to be of service to you in that regard.
Why You Should Refinance
Among the top reasons that you might consider refinancing your mortgage right now is that interest rates are the lowest that they have been in many years. What is your current mortgage rate? The average rate for the American homeowner right now is just under 6 percent, and if you are paying more than that, you should consider refinancing. For every ½ point of interest that you shave from your overall mortgage, you save thousands of dollars over the life of the repayment. That can amount up to significant savings over your lifetime.
One problem that many homeowners face is that their payments on their existing mortgage are so large that they have little or no money left once their payments have been made to pay for other necessities in life. When you refinance, you can choose a different term which (coupled with your reduced rate of interest) will allow you to make a smaller monthly payment on your mortgage, leaving you with money left at the end of the pay period for the other purchases and bills that you have. This has the added great benefit of allowing you to protect your credit rating by not falling behind on your mortgage payments, which can be very detrimental to your overall credit score and ability

to borrow money, access lines of credit, get a good rate on your credit card, or even get the job that you want.
Shopping Around For Your New Mortgage
While the average closing fees on mortgages taken out right now are just under $1,000, you should look for a lender who is willing to share some or even all of the costs with you. Many lenders will do so, or they will add the cost of closing fees and other fees related to mortgage refinance into your loan payments. Because there are many little details involved in mortgage refinancing, it is always pertinent to shop around for the best all around deal on your own mortgage.
A lender who is willing to write your new mortgage at a percentage point difference from another lender may not offer the other terms that you are looking for, such as no penalty for pre-payment, which is an important term that you should demand in your new mortgage if at all possible. While getting the perfect mortgage refinancing package takes a bit of work and involves exploring your options, it is possible.
Bad Credit Mortgage Refinancing Options
For those borrowers with bad credit, do not despair. There are lenders who are willing to rewrite your existing mortgage to more favorable terms, regardless of your past mistakes. And even though your new interest rate will be slightly more than the average borrower with good credit, it can still be lower than what you are paying now and payable over a longer period of time which can make your payments smaller and easier to fit into your current budgetary constraints.
Amanda Hash is an expert financial consultant who specializes in helping people to recover their credit and get approved for home loans, car loans, personal unsecured loans, unsecured credit cards, refinance home loans, consolidation loans, student loans and other financial products. If you want to learn more on how to get approved for Bad Credit Loans and Unsecured Loans just visit http://www.yourloanservices.com/ and you'll find all the information you need.