When Money Is Tight: Benefits of Refinancing
It is a time of financial woes. Watching the news at night makes me want to rewind the clock in order to make different decisions in preparation for the doom and gloom we are experiencing. With trouble in the housing market, the stock market and the job market, is there any aspect of the economy that looks promising?
With interest rates at an all time low, people interested in refinancing are finding excellent rates and cost savings in an environment where good news is hard to come by. Homeowners who have enough equity in their home are finding lenders who need the business after the boom times where refinancing was a standard along with quick sales and growing home values. Mortgages companies are looking for viable customers and are finding the refinancing market one saving grace in a long line of deteriorating markets.
Homeowners find refinancing beneficial, especially if they hadn’t locked into a low interest rate. As home values have decreased, if a home is valued appropriately and the homeowner has enough equity in the home, the low interest rates can lower their monthly mortgage rates. With the need for bright spots in a troubling economy, finding extra money every month can be essential for survival until the economy rebounds.
January 29th, 2009 at 2:15 pm
Oh sure, but when you’re trying to also take advantage of all this and buy a flip/rental home, nobody wants to both lend you that and refinance your current home, too. It’s even worse if you’re trying to do things financially with a business, too.
January 29th, 2009 at 2:17 pm
One way I found to afford college was to refi my house that I’ve been living in for awhile now. I was lucky because a friend is in the business and helped me jump through all the hoops. It sure helps with the college bills! What a relief.
January 30th, 2009 at 10:59 pm
Refinancing isn’t as easy as it used to be, either. It would be great but everyone’s worth less now, so do it if you can but otherwise don’t worry about it and go play with your kids.
February 23rd, 2009 at 8:21 am
I spent all day friday going through the refinance process with my bank and you are right that it is not as easy as it was before but things are looking good. There is some money out there to be loaned, you just need to seek it out and have the qualifications needed. I, hopefully, will hear something today.