A Guide to a Refinancing Mortgage

Refinance your mortgage so you don’t lose your house! For most Americans a mortgage is the largest investment they will ever make. Owning a home has always been considered a major aspect of the ‘American Dream’. While many Americans work and save for years to be able to afford their dream home many times they find themselves in over their heads and unable to afford their monthly payments. These days’ defaults on home mortgages are at a record high because people were given home loans that they could not afford. This is one of the main factors which led the federal government to lower the base interest rate, which in turn lowers mortgage rates. It is important for homeowners to take advantage of the lower interest rates by refinancing mortgage loans.By refinancing mortgage loans homeowners can save hundreds of dollars a month on their mortgage payments. This often times leads to tens of thousands of dollars in savings over the course of a thirty year mortgage! By refinancing mortgage loans for lower rates many struggling homeowners will be able to save their homes from foreclosure.Homeowners may also want to look in to refinancing for not only the lower rates, but also to make their loans more affordable by stretching out the term of their home loan. Refinancing mortgage loans can also mean to change the term of the mortgage. It is common for a home owner who is struggling with his monthly payment to refinance to a new thirty year mortgage. This would of course require him to be paying his mortgage for a longer period of time in the long run, but in the short term he will have an easier time affording his monthly payments and the likelihood of losing his home will be much less. Over time when he becomes more comfortable with his payments, maybe by getting a new job or paying off another loan, then he can either refinance to a shorter term mortgage or put more money towards his principle to pay off the loan early.Refinancing mortgage loans is a great way to make it easier to afford a home when an owner is struggling to make his payments. A borrower can either lower his rate in order to lower his monthly payment or change the term of his loan in order to lower his monthly payment. It is important to research if this is the best option for you, but it can never hurt to get a few rate quotes! Check to see if refinancing mortgage loans is right for you and your family!