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  1. Avoid These Common Mistakes When You Refinance a Mortgage

    Avoiding these common mortgage refinancing mistakes will help you accomplish your goals when you refinance a mortgage. Mortgage Refinancing: 10 Common Mistakes to Avoid

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  2. Top 10 mortgage mistakes to avoid - Choice Finance® mortgage ...

    Top ten Mortgage Company, lender Top 10 mistakes to avoid Home buying, refinancing, home equity loan. Back to frequently asked mortgage questions

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  3. Mortgage Refinancing, Mortgage Refinance Rates, Home Refinancing

    Mortgage refinancing can reduce your payments with a lower rate. GMAC Mortgage offers low mortgage rates for refinancing your home loan.

    http://www.gmacmortgage.com/mortgage-refinancing.html

  4. Refinance Mortgage Loans to Avoid Foreclosure of Your Home ...

    In previous years, people who could not pay their mortgage loans had no other recourse but to see their precious homes taken away by banks. After years of hard work ...

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  5. Stop Foreclosure Loans - Loan Modification Foreclosure To ...

    Looking for stop foreclosure loans because you are having problems repaying your mortgage? This loan modification foreclosure help is something that you should look into.

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  6. Avoid These Mortgage Refinancing Mistakes | Mortgage Rates ...

    Homeowners who are unfamiliar mortgage refinancing, as well as those who are desperate to change their loan conditions, are too often careless and end up making ...

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  7. Mortgage Refinancing -Mistakes To Avoid - Refinancing Your ...

    All of us do mortgage refinancing. Acting in response to the global recession in the latter part of 2008, the Federal Reserve has been authorized to pump in a lot of ...

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  8. Mortgage Inspection Service Urges Homeowners About to ...

    With mortgage interest rates at near historic lows, the Mortgage Inspection Service is urging all U.S. homeowners on the verge of refinancing their home ...

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  9. 5 Mistakes to Avoid When Refinancing - Kiplinger - Personal ...

    Mortgage rates are at record lows and should stay that way as long as economic reports continue to be disappointing, according to Bankrate.com, which tracks mortgage ...

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  10. Need to Refinance to Stop Foreclosure - LoveToKnow: Answers ...

    Do you need to refinance to stop foreclosure? While there are indeed some lenders who will refinance a mortgage to help the homeowner avoid foreclosure, if you are ...

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  11. 10 Mistakes to Avoid When Refinancing a Mortgage

    With mortgage interest rates as low as they are right now, homeowners can save a lot of money by refinancing their home loan. But it's not as simple as finding a good ...

    http://www.mortgageloan.com/10-mistakes-to-avoid-when-refinancing-a-mortgage-3481

  12. FHA Refinancing to Avoid Default or Foreclosure

    FHA Refinancing to Avoid Default or Foreclosure FHA borrowers have a variety of options they can use to avoid defaulting on FHA mortgage loans and/or going into ...

    http://www.fha.com/fha_article.cfm?id=217

When to Avoid Mortgage Refinance

When to Avoid Mortgage Refinance

 

It is tempting to consider refinancing a mortgage these days because interest rates are as low as they have been in decades, and they can hardly get much lower. So anyone with a mortgage should at least think about whether refinancing makes sense in their case. There are some situations, however, where refinancing is best avoided.

 

Let’s start with good reasons for refinancing. These could include switching from an adjustable mortgage in which the interest rates are susceptible to increasing making payments higher, to a fixed rate mortgage where the payments will not change. Or perhaps you want to switch your loan to 15 years and pay off your house. You might even want to refinance and take some money out of your home equity to pay off high interest debt like credit cards. Going into debt to pay off other debts is not a good idea, however, in the opinion of this author. Just avoid building up credit card debt in the first place.

 

If you have been paying on your mortgage for quite a while and don’t have that much longer to pay it off, it is probably better not to refinance. You will be paying most of the finance charges in the first years of the mortgage and much more of your payments are applied to the loan principle towards to end. Refinancing may result in lower monthly payments, but because you will probably be paying for more years, and you will be paying mostly interest and little principle in the early years of the loan, you could end up paying a lot more overall before paying the loan off.

 

If your home has gone down quite a bit in value you might not even have enough equity to pay off the original mortgage with the amount you can borrow for a refinance. Remember, you will only be able to borrow about 80% of the amount the house is worth for a refinance. Some loans are structured to include a higher amount, but those costs are built in and those types of loans are expensive. Another reason to forego a mortgage refinance is if you have already taken a good bit of equity out of the home via second mortgages or home equity loans. These withdrawals might make it unfeasible for you to refinance.

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  • How Can I Avoid These Scary Closing Costs? - Fox Business
    How Can I Avoid These Scary Closing Costs?Fox BusinessI tried to refinance with a lender, but the estimated closing cost was almost $5000, so I didn't go with the refinance. I have $40000 equity in my home, but I am not sure if it is a good idea to borrow against that equity to pay off the mortgage.and more »
  • FHA Streamline Refinance Expert, Steve Hays, Launches New FHA Refinance Website - PR Web (press release)
    PR Web (press release)FHA Streamline Refinance Expert, Steve Hays, Launches New FHA Refinance WebsitePR Web (press release)FHA streamline refinance expert, Steve Hays, is using his 20-year career as a mortgage expert to help homeowners struggling with their mortgage. The launch of http://www.fhaeasyrefi.com is designed as a first step resource to help homeowners meet the ...and more »
  • More Iowans catch up on mortgages - Omaha World-Herald
    More Iowans catch up on mortgagesOmaha World-HeraldThat means someone with a $150000 home whose interest rate was 6 percent could save $200 per month by refinancing at a 3.75 percent rate, which was possible in the first quarter of 2012. Lower payments help people stay in their homes and avoid falling ...and more »
  • Senate Banking Committee Chairman Tim Johnson Gives His Statement on Mortgage ... - LoanSafe
    Senate Banking Committee Chairman Tim Johnson Gives His Statement on Mortgage ...LoanSafeThe Committee heard from HUD Secretary Shaun Donovan, discussed the state of the housing market and explored potential legislative and regulatory options to help responsible homeowners refinance their mortgages and avoid foreclosure.and more »
  • Rep. Tim Johnson Statement on Mortgage Refinancing - LoanSafe
    The Real Deal New YorkRep. Tim Johnson Statement on Mortgage RefinancingLoanSafeThe Committee heard from HUD Secretary Shaun Donovan, discussed the state of the housing market and explored potential legislative and regulatory options to help responsible homeowners refinance their mortgages and avoid foreclosure.Senate Banking, Housing and Urban Affairs Committee HearingInsurance News Net (press release)all 11 news articles »
  • Use Tax Refund to Cut My Mortgage Payment? - Fox Business
    Use Tax Refund to Cut My Mortgage Payment?Fox Business(You could drastically reduce your mortgage payment by $416 per month, but your $5000 in savings would be gone in only one year.) The long-term approach to lower your mortgage payment is to research refinancing opportunities.
  • Obama Heads to Nevada, Swing State Where Latino Voters Are Key - Fox News
    The Associated PressObama Heads to Nevada, Swing State Where Latino Voters Are KeyFox NewsObama was to promote housing policies to help homeowners avoid foreclosure in a quick visit Friday to struggling Nevada, which ranks second in the nation in foreclosed homes and has the highest unemployment in the country. Obama won in Nevada in his ...Obama Heads To Struggling Nevada To Talk Economy, Housing After Fundraising SwingHuffington PostPresident Obama's Empty Promises On The Housing CrisisLas Vegas TSGObama wants Congress to help homeownersOneNewsNowall 599 news articles »
  • 5 Ways to Avoid Filing for Bankruptcy - U.S. News & World Report (blog)
    5 Ways to Avoid Filing for BankruptcyU.S. News & World Report (blog)If you're paying off your home, another method is to restructure or refinance your mortgage. By arranging a new mortgage payment plan, you may be able to save some money to put toward paying down your debt. It's worth it if you can avoid bankruptcy or ...and more »
  • Lenders less leery of reducing homeowners' principal - The Republic
    Lenders less leery of reducing homeowners' principalThe RepublicSome economists and politicians have argued for years that the only way to revive the housing market and jumpstart the economy is to vastly reduce the amount Americans owe on their mortgages. But lenders have balked at writing down debts.and more »
  • When to Refinance Again - New York Times
    New York TimesWhen to Refinance AgainNew York TimesTHOSE who refinanced their mortgages a year or so ago, when interest rates averaged just below 5 percent for a 30-year fixed-rate loan, may be wondering whether it's time to refinance yet again, now that rates are at least a full percentage point lower ...and more »

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