Refinancing a home is a big decision to make. The website http://www.ireversesell.com/2009/03/26/home-refinancing.html mentions many of the obstacles you must face, but doesn’t mention the incredibly low interest rates available.
Since the article was written these rates have continued to decline and with a reputable lender your mortgage could go down several hundred dollars a month.
A mortgagor with a six and a half percent (6.5%) interest rate could qualify for a fixed rate of five and a quarter percent (5.25%) depending on the equity in their home. A fifteen year fixed rate is even lower. As mentioned in the article the loan to ration value (loan to property value) is very important and for your security should not exceed 80&.
Do all your homework and know your current rates. If you have poor credit, you probably will not qualify. However, It might be worth your time to investigate with one of the major banks and it could save you money each month.
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