It's important for homeowners to recognize that they are not necessarily locked into their original home loan and that they may have a wealth of opportunities available to them when they strategically manage their mortgage
Calabasas, CA (PRWEB) April 24, 2007
Countrywide Home Loans is offering mortgage refinancing insights to homeowners about how and when they may best capitalize on refinancing their existing mortgage, promoting informed decisions among borrowers. As the refi boom in recent years has illustrated, many homeowners recognized the benefits of refinancing when interest rates decreased--but it may be well worthwhile for them to consider refinancing in any market as a way to leverage their mortgage as a strong financial management tool. For a no-obligation, free home loan consultation, consumers may call 1-800-508-0751 or visit https://loans.countrywide.com/FTLP/WHNew/SEOP3/default.aspx?from=EN_10&afid=826&sourceid=EN_10;11428;3;120;;2;826;68512;375;CFSL;all;List1;Theme;Theme;1;2;04242007;SEOP1; [on-line.]
"It's important for homeowners to recognize that they are not necessarily locked into their original home loan and that they may have a wealth of opportunities available to them when they strategically manage their mortgage," said Greg Lumsden, senior managing director and president of Countrywide Home Loans' Full Spectrum Lending Division. "By factoring in some key considerations, homeowners eligible to refinance can maximize this opportunity and use it as a means to help them achieve personal and financial goals. Countrywide is committed to providing homeowners with the tools and information they need to fully take advantage of their home's financial potential."
In considering whether to refinance, homeowners should consider among other factors the:
- Length of time they plan to stay in their current home.
- Amount of equity they have accumulated in their home.
- Interest rate of their current mortgage as compared to a new loan's rate.
- "Break-even" point, i.e., how long it will take to recover the cost of refinancing. Countrywide offers an online Refinance Calculator to help homeowners evaluate their individual situation.
Homeowners opt to refinance for a variety of reasons. Here are a few of the most popular:
- Debt-consolidation--By accessing their home's available equity through a "cash-out refinance," homeowners may be able to pay off non-tax-deductible debt, such as credit card balances or car loans, and take advantage of the deductibility of mortgage interest (borrowers should consult a tax advisor for details). Additionally, homeowners who have a first and second mortgage often choose to consolidate both loans to achieve monthly payment savings.
- Home improvements--A cash-out refinance can provide homeowners with the funds to upgrade their home, potentially increasing its value when they decide to sell. Some homeowners use the cash-out funds to increase their home's energy efficiency, which can not only save on monthly utility bills, but also increase the home's marketability.
- Fixed-payment stability--When interest rates threaten to rise, homeowners with adjustable rate mortgages (ARMs) often decide to refinance a mortgage to a fixed-rate for greater peace of mind.
- Short-term savings--For homeowners planning to move out of their home within a few years, switching from a fixed-rate mortgage to an ARM can make a lot of sense. In doing so, homeowners can take advantage of the lower initial interest rates of a new ARM to save on monthly payments in the short term.
- Equity boost--Homeowners can build equity faster by moving to a shorter-term mortgage. For example, refinancing a 30-year loan term to a new 15-year loan may mean higher monthly payments (depending on the current loan's rate), yet homeowners can reap the benefits of building equity more quickly and saving significantly in interest costs over the life of the loan.
For more ideas on when and why refinancing can work well in a variety of scenarios, homeowners can speak with a Countrywide home loan expert at 1-800-508-0751 or visit on-line.
*About Countrywide Home Loans, Inc.
Countrywide Home Loans, Inc., a member of the Countrywide® family - America's #1 home loan lender - (as ranked for 2006 by Inside Mortgage Finance, Feb. 2, 2007, Copyright 2007), originates, purchases, securitizes, sells and services home loans and is the primary subsidiary of Countrywide Financial Corporation (NYSE: CFC). Countrywide Financial Corporation, through its subsidiaries, provides mortgage banking and diversified financial services in domestic and international markets. Founded in 1969 and a member of the S&P 500 and Fortune 500, Countrywide Financial Corporation is headquartered in Calabasas, California and its family of companies has a workforce of more than 55,000 in over 900 offices across the country. http://www.countrywide.com