According to the National Association of Realtors, home depreciation is affecting homeowners across the nation. As a result, many consumers are jumpy that home values may begin to drop before they refinance their adjustable rate mortgage. Millions of homeowners have mortgage loans that are scheduled to recast which will cause interest rates to rise. Borrowers will have rising monthly payments as a result.
The good news for people who are considering refinancing your ARM is that the current market is yielding low rates with affordable payments blessed with interest only monthly payment options. The immovable rate 2nd mortgages are a entire percentage point lower than the prime rate for home equity lines of credit that are reported in the Wall Street Journal.
The bottom line you need to concentrate on is whether or not the home equity loan offers you monthly savings by consolidating your debt. If you have the capability to lock into a immobilized rate mortgage and save a few hundred dollars a month, then it is time to call your loan officer. Ask your loan representative if you can eliminate your revolving credit cards at the same time you refinance your ARM.
How much money would you save by refinancing into stationary rate loan?
As many of borrowers already know, consumer debt is at an all-time high, and if you have credit card bills mounting each month it may be time to consider a 125% 2nd mortgage. This 2nd mortgage requires zero equity, and the loan balances can even exceed the value of your home. FHA mortgages will permit you to subordinate your existing 2nd mortgage if you do not have enough equity to refinance both loans into one mortgage.
– 2nd Mortgage Loans to 125%
– Home improvement financing
– Debt consolidation for lower Payments
Immobile rate 2nd mortgage loans can convert adjustable rate rate credit card debt into a elementary interest installment loan that yields significant monthly savings and extra tax deductibility as well. Homeowners benefit from diminished their numerous credit cards balances when the compounded interest debts convert to ordinary interest savings. People are saving thousands of dollars each year, when they consolidate their variable interest loans into a stationary rate 2nd mortgage or FHA home loan.