Refinancing

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Related to Mortgage refinance: Mortgage rates

Refinancing

An extension and/or increase in amount of existing debt.

Refinance

To repay a loan by taking out another loan. Refinancing can allow one to secure a lower interest rate; for example, one can replace a loan at an 8.5% rate with one at 5.5%. In the case of a balloon loan, refinancing can repay the principal if one does not have sufficient funds to do it; that is, if one has made only interest payments over the life of the loan and has not saved the principal amount when the loan comes due, refinancing can prevent bankruptcy. There are two main drawbacks to refinancing. First, there is no certainty that one will be approved for it. One thus takes a risk every time one decides to make only interest payments on a loan or mortgage. Secondly, refinancing generally resets the repayment period; that is, if one refinances six years into a 10 year loan, the one generally repays the new loan over 10 years instead of the remaining four.

Refinancing.

Refinancing is the process of paying off an existing loan by taking a new loan and using the same property as security.

Homeowners may refinance to reduce their mortgage expense if interest rates have dropped, to switch from an adjustable to a fixed rate loan if rates are rising, or to draw on the equity that has built up during a period of rising home prices.

Closing costs for a refinance are generally comparable to those for any mortgage. If you're refinancing to reduce your payments, you'll want to calculate how long it will take before you recover the closing costs and begin to save money.

If you're planning to move within a few years, refinancing may not actually save you enough to justify the closing expenses. And if you refinance to use some of your home equity, you run the added risk that prices could drop and you could end up owing more on your mortgage than you could realize from selling your home.

References in periodicals archive ?
The government of Nigeria has said that a new Nigeria Mortgage Refinance Company (NMRC) will be launched on January 16.
The mortgage loan professional explains the easy formula to calculate if mortgage refinance is right for you.
The firm arranged a $4 million, 10-year first mortgage refinance for Parkside Court Apartments located in Ewing, NJ.
The Jordan Mortgage Refinance Company is a public listed company established in1996 following the Jordanian Prime Ministry's approval of the Housing Sector Restructuring Project.
With the expected increase in mortgages rates, the Association expects the mortgage refinance share of total mortgage originations to decline from 70 percent to 54 percent.
Now we continue to grow, and seek to add more high-caliber mortgage refinance professionals to our award-winning sales department.
25 million fixed-rate mortgage refinance for an 82-unit multi-family property on Rutgers Street in Manhattan.
com), a nationwide mortgage lender specializing in FHA mortgage refinance loans, has been selected as one of the Tampa Bay Business Journal's 2009 Best Places to Work.
Ngama explained that $250 million would be devoted to the establishment of a mortgage refinance company, while the balance would be used to set-up three other firms to drive the Nigeria housing finance project.
Global Banking News-March 20, 2013--Nigerian central bank reveals draft on proposed Mortgage Refinance Company(C)2013 ENPublishing - http://www.
Ranieri, senior vice president and managing director of NorthMarq Capital's Capital Services Group East, arranged a first mortgage refinance and a revolving line of credit for the Franklin Hall Apartments, a 65-unit multifamily property located in Bloomfield, New Jersey.
com, the nation's premier source for residential mortgage refinancing, today announced that it has expanded its licensing and is now accepting mortgage applications in Arkansas, New Hampshire and New Mexico, further expanding its national footprint as a leading mortgage refinance lender.