Ditech : Do You Need a Refinancing

What is mortgage refinancing?

As a borrower, you may refinance your existing mortgage to repay your existing mortgages. The main purpose of mortgage refinancing is to acquire a mortgage at a lower interest rate and utilize substantial monthly savings for more immediate requirements.

Advantages of mortgage refinancing

Lower Monthly Installments- when you refinance your mortgage at a lower interest your payable interest rates are substantially reduced.

Reduce the Mortgage Term- By reducing the rate of interest you can shorten the length of the mortgage.

Use the equity of your home for your benefit - As an alternative to a home equity loan, you can choose to refinance your home for an amount greater than the remaining balance of your mortgage.

Consolidate your debts- by refinancing your mortgage at a lower interest rate; you can consolidate all your individual loans into one new mortgage at a lower rate of interest.

Types of mortgage refinancing you can opt for

Rate and Term Refinancing- This refers to a change in the rate and term of an existing loan or mortgage. Rate and term mortgage refinance allows you to secure a lower interest rate, change the terms, or opt for a lower payment plan…all without paying off any additional debts.

Cash-Out Refinancing- A cash-out refinance differs from rate and term refinance in an aspect that the new loan amount is larger than the existing loan amount due to the additional cash you take with the new loan. By opting for a cash-out refinancing, you can pay off your debts on top of their existing loan amount, and changing the rate and term of the existing loan at the same time.

Ditech : Refinance Mortgage Online: Why Refinancing Online Can Save You Money

If you are in the market to refinance your mortgage, shopping for a new mortgage online can save you a great deal of money. The Internet makes it easy to locate mortgage offers and find the best loan for your financial situation. Here are several tips to help you find the most competitive mortgage offer for your financial situation online.

Refinancing Your Mortgage Online Is Easy

The Internet makes it very easy to compare mortgage companies and their loan offers. After a quick online search you can locate hundreds of lenders competing for your mortgage. With very little effort you can quickly compare multiple offers and determine which one is best for your financial situation.

How to Compare Mortgage Loan Offers

When you compare mortgage offers it is important to compare all aspects of the loans you are considering, not just the interest rates. Many homeowners make the mistake of choosing the mortgage with the lowest interest rate; these homeowners often overpay for everything from lender fees to closing costs by neglecting to include these expenses in their comparison. When you compare loan offers always request a copy of the Good Faith Estimate from the lender for an itemized list of all expenses associated with the mortgage offer.