Finance home re finance mortgage debt consolidating Free sex chat in philippines

One of the best reasons to refinance is to lower the interest rate on your existing loan.

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These homeowners may justify such refinancing by pointing out that remodeling adds value to the home or that the interest rate on the mortgage loan is less than the rate on money borrowed from another source.Another justification is that the interest on mortgages is tax deductible.Today, many lenders say 1% savings is enough of an incentive to refinance.Reducing your interest rate not only helps you save money, it also increases the rate at which you build equity in your home, and it can decrease the size of your monthly payment.While these arguments may be true, increasing the number of years that you owe on your mortgage is rarely a smart financial decision, nor is spending a dollar on interest to get a 30-cent tax deduction.

Many homeowners refinance to consolidate their debt.

Refinancing a mortgage means paying off an existing loan and replacing it with a new one.

There are many reasons why homeowners refinance: the opportunity to obtain a lower interest rate; the chance to shorten the term of their mortgage; the desire to convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa; the opportunity to tap a home's equity in order to finance a large purchase; and the desire to consolidate debt.

Some of these motivations have benefits and pitfalls.

And because refinancing can cost 3% to 6% of the loan's principal and – like taking out the original mortgage –requires appraisal, title search and application fees, it's important for a homeowner to determine whether his or her reason for refinancing offers a true benefit.

Take this step only if you are convinced you'll be able to resist the temptation to spend once the refinancing gets you out from under debt.