Yep, that’s right. Ben Bernanke, the Federal Reserve Chairman, refinanced his home. Your eyes do not deceive you. So, what about you? Don’t you think it’s time for you to refinance your home too? According to Bernanke’s financial disclosure form, he took out a 30-year mortgage with a fixed rate of 4.25% to replace one he took out in 2011 at 5.375%. Granted Bernanke has better credit than most Americans and has access to information the average consumer doesn’t, but besides that why are so many Americans waiting to refinance their homes when rates are at historic lows?
Because no two situations are alike. Refinancing isn’t an option for some homeowners because they have no equity in their homes, their homes aren’t worth as much as the balance on their mortgages or they have bad credit while homeowners who have a FICO score of 740 or above, at least 10% equity in their home and few debts are better equipped to refinance.
Continue reading “Ben Bernanke Refinanced his Home, Maybe You Should Too”
Unless you’re living under a rock, you know it’s a presidential election year, with Election Day less than two months away. And while many are already sick and tired of the mud-slinging and negative ad campaigns, there’s one thing that homeowners should be paying close attention to – a refinancing expansion bill the White House is urging the U.S. Senate to vote on as early as this week.
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For the past decade many homeowners have taken advantage of cash-out refinancing, taking out a new mortgage with a loan amount that’s bigger than the balance on the old mortgage with the homeowner receiving a check for the difference at closing. However, today mortgage lenders are seeing much more of what’s known as “cash-in” refinancing where the borrower refinances their home mortgage for a smaller amount than their old loan, with the homeowner taking a check to the closing.
Continue reading “Why Cash-in Refinances are in Vogue”
Most people who consider refinancing their home mortgages do it to get a lower mortgage rate. According to the Bureau of Economic Analysis the average interest on an outstanding mortgage at the beginning of 2010 was 5.979%. With mortgage rates at historic lows and well below 5.979%, refinancing is a no-brainer. But what many home owners don’t know are the other reasons why they should consider refinancing their home mortgages.
Continue reading “Why You Should Refinance”