There are many types of refinancing available if you are looking for a way to lessen the monthly bills that you need to pay. For most home owners, however, it is very important to carefully consider these types of refinancing before rolling any additional debt into the payments for your home. If, for instance, you are attempting to eliminate high interest credit card balances and consolidate those into your home loan only to later accumulate additional debt on your cards again, you are entering dangerous territory.
For the most careful consumers, however, it is important to realize that with the right kind of loans you can take advantage of lower interest rates and an option of paying off your loan early without any penalties.
Conventional Mortgage Refinancing Serves as a Real Advantage to Many First Time Home Buyers
When was the last time that you went in apply for a home loan? If it has been a while then you may have forgotten how your current credit situation plays into the rates that are available to you. Your current credit score, along with the amount of the money that you are able to put down can help you get the best loan opportunities. And while there are many favorable mortgage loan options available, the fact of the matter is if you are not a good candidate with a great credit score you may instead fall victim to loan options that are not that good and may make it difficult for you to meet. Late payments, combined with high interest rates, can cause you to default on a loan and make your credit situation even worse.
Consider some of these statistics about the kind of loan rates that are available and the impact that this has on they have on the economy of the nation:
- although there are many challenges that first time home owners face, 13% of all buyers cited that saving for a downpayment was most difficult step in the home buying process, according to the 2017 Home Buyer and Seller Generational Trends Report conducted by the National Association of REALTORS.
- 59% of all buyers used conventional loans to finance their home, according to the 2017 Home Buyer and Seller Generational Trends report.
- 59% of home owners wish they understood the terms and details of their mortgage better, according to data collected in September of 2016.
- Unfortunately, as many as 63% of home owners are delinquent in their mortgage payments and are not even aware of services that mortgage lenders can offer to individuals having trouble with their mortgage, aApproximately 63% of homeowners are delinquent in their mortgage payments and are not aware of services that mortgage lenders can offer to individuals having trouble with their mortgage.
- Perhaps one of the reasons that so many or these loan consumers are uninformed is that approximately 35% of home buyers were also first-time buyers, according to the 2016 National Association of REALTORS Profile of Home Buyers and Sellers.
- Home loans play a significant role in the nation’s economy because the 2016 National Association of REALTORS Profile of Home Buyers and Sellers survey indicated that among those who financed their home purchase, buyers typically financed 90% of the home price.
Taking the time to explore the various types of refinancing options can help current home owners make good decisions about the future of their current loan and make comparisons about the opportunities that might be available to them.