Home Equity Mortgage & Loan Refinancing

By Sam Ferdi

Home Equity Mortgage Loans

When to get a home equity mortgage.

o If your original home equity mortgage was doused with an outrageous interest rate, refinancing the loan allows you to save money every month.

o By refinancing your home equity mortgage you can lower your interest rate and finance for a longer or shorter term

o If you currently have an adjustable rate mortgage that has crept up and is getting ready to roll into high rates you could refinance your loan into a new fixed rate loan

• A home equity mortgage is a great way to get the cash you need and lower your monthly payments at the same time

o You could lower monthly mortgage payment by refinancing into a new, lower-rate home mortgage loan; it could be a fixed rate loan, an adjustable rate mortgage, or a fixed-ARM combination loan.

• If you have made your payments on time, have built up some equity in your home and have a good overall credit score, refinancing at a lower mortgage rate could lower your monthly payment.

o You can also find an offer that suits you and you can even find lower home refinance rates.

o Home equity line of credit can be compared to how credit cards work. When you file an application for this type of loan, your home is used as collateral.

You must speak with a financial advisor before you decide to refinance. If you have decided to refinance your home loan, then you must analyze how this will fit in your long term/short term goals.

Your quick online quote request will give you quotes from several lenders who can refinance your home equity mortgage even if you have poor credit.

Consolidate your loans if you recently bought a home recently with a 1st and 2nd mortgage. You could refinance your loan to draw cash from your home’s equity for debt consolidation, home improvements, investments or any other purposes.

If you purchased your home with less than 20% down payment, you probably have a monthly mortgage insurance payment along with your principal and interest. A home loan refinance will eliminate mortgage insurance such that it should be designed to not only get a loan without mortgage insurance, but also to find a rate that is lower than your current loan.

Home equity mortgage can be very risky. If you fall behind on your second mortgage, you could very easily lose your home. Predatory lenders know this, and they search the market of home equity borrowers, looking for victims that are within striking distance. Many “lenders” are not after your interest rate money, but after your home.

They target borrowers who:

• Have credit problems
• Are elderly and on a fixed income
• Have low income

So, be careful