Refinance Options - Fixed Rate vs. Adjustable Rate Mortgages

We also had a good community and were enjoying our new church family. Do I still feel the sting from those high equity years? I most certainly do. The learning lessons will live on. We now try to keep our debt as close to zero as possible.

5. For those loans closed after June 3 2013, the FHA will begin assessing the MIP over the life of the loan. Home owners will not be able to cancel the MIP after reaching a certain level of home equity. For those with an FHA loan today, the MIP can be cancelled if the home owner has paid at least five years' worth of MIP and the loan balance has fallen to 78% of the property's purchase price.

Refinancing loans offer an excellent opportunity to pay off existing debts and reduce periodic payment obligations. You may even liquidate equity that has accumulated in real property over the period of tenure by refinancing. Extending the tenure of a refinancing loan is another effective way of lowering monthly payments. This is a widely accepted tactic of saving, and using the saved amount to pay off the principal of the loan. Therefore, extending a loan works as a two-way process, it lowers your monthly payment and reduces the payment burden since you use the amount saved to payback the principal amount.

This decision to refinance a mortgage usually comes down to ask you the question that "Will I benefit financially from a mortgage refinance?" To find out the various benefits of refinancing, you should keep the following points in mind:

Some lenders may offer a much lower interest rate with a higher number of points, while others may offer a higher interest rate and only zero to one point involved. Refinancing a mortgage usually involves allowing a loan company to pay off your original home loan in return for you signing a loan contract with them. Take the time to explore all of the different refinancing options you have available to you. Refinancing your home or property is a big decision that could drastically affect your financial future, for the good or the bad, depending on how smart you go about the process. Many loan agents offer you refinancing deals that seem too good to be true, and while most of them seem to have your best interests at heart, do try to keep in mind that they are not paid unless they approve you for a loan--and you take it.

Many lenders are willing to offer a refinance mortgage loan if you have equity in your house, and you may choose to refinance to get cash for something you want or need such as a vacation, home improvements, or a college fund. You may also decide to refinance simply because it makes good financial sense. A lot of times, people have to take less-than-ideal mortgage terms when they are buying their house, either because they have bad credit or little credit when they first take out their home loan.