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Cash
Out Refinancing
The last
few years have seen the lowest rates in decades not
to mention a continued surge in refinancing like no
other decade. Current 30 year fixed rates remain well
below 6.00%. With 15 year fixed rates below 5%. Consumers
are seeing financial advantage that could save them
thousands of dollars over the life of the home loan.
What should you do?
A year
to year comparison of average mortgage rates reveal
the median rate for interest charge savings is 7% or
under. These factors indicate that the long anticipated
savings for home owners seeking refinancing has arrived.
The rates should remain low through the fall/winter
months, though fluctuating several basis points. This
should prove ideal for home bound shoppers seeking to
find the best bargains and low interest rates that will
significantly reduce interest charges and possibly save
thousands of dollars over the life of the loan. Among
the more sought after loan programs at this time is
what is called Cash Out Refinancing.
What is cash-out refinancing? Cash-out refinancing allows
you to refinance your mortgage for more than you owe
and then pocket the difference in the form of cash.
This can be ideal for funding college education, buying
a car, investing or pursuing a business venture. You
use it as you need it.
How does
it work? Here's an example: You currently owe $90,000
on a home that's valued at $160,000. You are seeking
to lower the interest rate. You also want $20,000 in
pocket-able cash. You refinance the mortgage for $110,000.
This leaves you with a lower rate on the balance you
owe on the house, and you pocket $20,000 cash to use
as you wish.
To begin the process take advantage of low rate loan
quotes from various lenders competing in highly active
online lending marketplaces like LoanWeb.com. Fill out
a quick quote form and take your time comparing rates
quoted from various lenders. In time you're bound to
get an offer you cannot refuse. Once a good offer is
made make sure to ask for a good faith estimate.
Compare
Lowest Cash Out Refinance Rates at
LoanWeb.com
For more information on what consumers in the financial
industry are doing go to Mortgage Loan Search
Author:
Mark Askew
Editor for the Mortgage Loan Search Network, the MLS
Rate Watch Program Newsletter and a host of e-business
periodicals
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