The mortgage refinance business is very competitive. Make sure you donât get conned by unscrupulous lenders. Jack Guttentag, the Mortgage Professor, cautions, âThe refinancing market is something of a jungle, but you are safe if you observe one basic principle: You cannot save money on a refinance unless the interest rate on the new mortgage is below the rate on the existing one.
âSome con artists will show you that your total interest payments will decline if you refinance into their higher-rate loan. However, they get that result by assuming that you will repay your new mortgage (but not your old one) on an accelerated (biweekly) schedule.
âSome others ⦠get (a lower) result by extending the term. If your current mortgage does not have many more years to run, an extension of the term can reduce the payment by more than the higher rate increases it. If you do it, you pay for it big time in the form of a higher loan balance in future years.â
To learn about two other steps you can take to help with credit repair, and to receive a complimentary Mortgage Refinance quote, visit Bad Credit Mortgage Refinancing Now, a site that can help you determine if refinancing makes financial sense for you.This article is free for republishing
Source: http://www.articlealley.com/article_187054_19.html
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