Refinancing: A way to save in troubled times

September 20th, 2011

More people have found themselves falling below the poverty line as the nation continues to struggle with high unemployment and a stalled housing market. For some of these people, home ownership is a dream that will continue to be deferred--or possibly never achieved at all. Others may have experienced home ownership only to lose their houses after a job layoff or some other financial hardship.

You can't really predict what will happen with your finances in the future, but you can take steps to improve your situation so that you will be cushioned from an unexpected change in your financial situation. Specifically, you may want to take a look at your mortgage loan to see if refinancing makes sense.

Using mortgage calculators

First, it's a good idea to review the amortization schedule for your current mortgage. It's important to know how much of your monthly mortgage payment goes toward principal and interest. Once you plug in the numbers, the amortization chart will show how much of your monthly payment goes toward interest in the early years of your loan. If it appears that you can knock off some of those interest payments by getting a new loan, a refinance calculator can help you run the numbers.

Compare mortgage deals

Contact several lenders to get mortgage quotes. A closing cost calculator allows you to compare various fees involved with refinancing. Some mortgage lenders may be willing to waive or reduce certain fees. Never agree to a refinance without getting a reliable estimate of the closing costs associated with a loan.

This is a tough economy, and it appears that it's going to take some time to really recover. But that doesn't mean you can't take steps now to improve your situation. Refinancing is just one option that could help lower your monthly bills. If you need help putting together a better financial strategy, consider talking with a financial planner or a debt counselor.

Posted By :

Why the GDP announcement already seems like old news

November 13th, 2013

Stronger GDP growth in the third quarter shouldn't have enough impact to change your mortgage plans....  Read More

A second bite at the refinancing apple

November 06th, 2013

With housing prices continuing to rise while mortgage rates fall, new refinancing opportunities are being created...  Read More

Poor jobs report dampens economy, reveals silver lining for borrowers

October 30th, 2013

Discouraging economic news has a silver lining for mortgage shoppers, in the form of sharply lower rates....  Read More

Budget deal leaves mortgage rates stable -- for now

October 23rd, 2013

The budget deal removes one potential disruption from the mortgage market, but don't expect rates to stay stable forever....  Read More

0 Responses to "Refinancing: A way to save in troubled times"

No Comments

Leave a Comment