Many homeowners may feel that they are tied to their original mortgage loan
Calabasas, CA (Vocus) March 19, 2007
Countrywide Home Loans encourages homeowners to conduct an annual mortgage evaluation to ensure that their home loan terms are still in line with their current financial and personal circumstances. Many Americans may overlook their home as a useful financial management tool - indicating a gap in Americans' appreciation of potential ways to make the best use of a new or existing mortgage. However, depending on their future plans and expected financial situation, there may be various mortgage solutions that, in fact, help them manage and achieve their changing financial goals. Many mortgage lenders, such as Countrywide, offer free home loan consultations to help homeowners evaluate their home financing options. Homeowners may also call 1-800-641-8271, for a no-obligation, free home loan consultation, or visit us on-line.
"Many homeowners may feel that they are tied to their original mortgage loan," said Greg Lumsden, senior managing director and president of Countrywide Home Loans' Full Spectrum Lending Division. "They tend to underestimate the potential value of changing their home loan strategies to meet short-term or long-term goals and match their current life stage. These homeowners may think of their mortgage as something they're stuck with until they sell their home, and that just isn't the case any more for many homeowners."
Homeowners should review their monthly mortgage statement and loan terms regularly to determine if refinancing would be helpful to their circumstances. Options might include:
- Investigating Interest. Obtaining a new loan may be a smart move when homeowners have a current mortgage with an adjustable interest rate that's on the rise. They may consider loans with a lower rate, a fixed payment, a different loan term or other features that match their current financial situation or long-term goals.
- Considering Cash-Out. A cash-out refinance can leverage equity as a source of funds needed to meet personal and financial goals, including home upgrades that may add to the property's value in the long run.
- Unlocking the HELOC. Homeowners may choose to open a home equity line of credit (HELOC) to tap funds from available equity to be used for multiple purposes, or in an emergency. Interest rates and monthly payments are generally lower than on credit card or installment loans and the interest paid is often tax deductible (a tax advisor should be consulted). Plus, payments are not usually due until money is accessed, so the unused line of credit provides a safety net for emergencies.
As with any financial decision, consumers should carefully evaluate their options and fully understand the advantages and disadvantages before making a change.
Homeowners can speak with a home loan expert at 1-800-641-8271 or visit Countrywide Home Loans 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.