Photo Scanner: Refinance Fees

Monday, 12 November 2012

Refinance Fees

With the housing market on the slow path to recovery, many brokers continue to offer low-cost refinances -- a mortgage payment revamping that covers closing costs -- to sweeten the deal for homeowners. A low-cost refinance also referred to as a zero-closing mortgage rate, is essentially a way to finance closing costs. For homeowners who plan to stay in their home, this is advantageous with one overarching caveat: it's beneficial as long as it lowers monthly mortgage payments and there's no change in the loan's balance, maturity date (the final payment date of the loan) or on the terms of the loan. Whatever the circumstances were when you took out your Home Equity Lines of Credit, the time may come when you decide to refinance your HELOC or refinance a home equity loan. Make sure you have clear goals as to why you are refinancing, and be certain those goals can be met by the program you choose. Typically, people look to refinance a HELOC to lower the rate, but sometimes getting a larger line of credit or even extinguishing the loan all together can be motivations to refinance. Some Home Equity Lines of Credit come with a lump-sum balloon payment that is required at some specified time. Refinancing to avoid having to come up with the lump-sum is another reason to refinance.