Refinance Loans

1. Refinancing should be considered when interest rates rise. False They should be considered when the current interest rates are lower than when the borrower first made their purchase. They can actually allow a borrower a lower interest rate. When refinancing at a lower interest rate, the borrower can save up to thousands of dollars on the repayment life of the loan. 2. How long you plan on keeping your house affects if refinance loans are best for you. True Refinancing can take at least three years to fully realize the savings from a lower interest rate, given the costs of refinancing. It may be wise to switch to a 15-year fixed rate refinancing plan. If the borrower pays off the balance early with a refinance loan, they may pay substantially less interest even if the payments are higher. 3. You can get approved for a refinance loan online within minutes. True Most companies provide very prompt approvals online. Hundreds of websites are dedicated to serving the refinancing community. Financial lending institutions usually have a free consultation and free application processes. 4. You must have perfect credit to get approved for a refinance loan. False To decision to refinance is also an option if the borrower has less than perfect credit. There are many lending companies that specialize in helping those with credit problems. It is best to obtain a credit report, so that the borrower knows exactly where they stand to negotiate refinance rates and terms with lenders. The credit report can be obtained through a request to one of the three major credit reporting bureaus: Equifax, Experian, and Trans Union. 5. A refinance loan is a way to get out of debt. True Romans 13:8 - Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law. Loan Rates