There's no better time to refinance your mortgage.1997 was undeniably a pivotal year for the mortgage industry. With the mortgage refinancing Refinancing An extension and/or increase in amount of existing debt. trend now sweeping the nation, interest rates at a five-year low and capital availability at an all time high, the residential real estate market is flourishing flour·ish v. flour·ished, flour·ish·ing, flour·ish·es v.intr. 1. To grow well or luxuriantly; thrive: The crops flourished in the rich soil. 2. . Compared to the first major real estate boom in the early 1980's, when 30-year fixed rates were at 18.75 percent, today's mortgage market is booming--with rates at a low 7 percent. The benefits of refinancing existing mortgages are numerous, as the market or the time could not be better. Whether it be to save money by reducing monthly payments, to shorten (audio, compression) Shorten - A form of lossless audio compression. the term of a mortgage or to increase the liquidity of an asset, now is the time to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. . With property values and home equity soaring soaring: see flight; glider. soaring or gliding Sport of flying a glider or sailplane. The craft is towed behind a powered airplane to an altitude of about 2,000 ft (600 m) and then released. , homeowners who could not refinance during the recession of the early 1990's because of significantly decreased asset values and unfavorable interest rates are now rushing to refinance. Many of the country's baby boomers See generation X. , who are now hitting their 50's, are opting to shorten their mortgage terms from a 30-year fixed-rate mortgage to a 15-year mortgage, allowing them to be mortgage-free by the age of 65 to enjoy their retirement years. For the Generation X group of homeowners, refinancing provides an opportunity to save additional capital for their children's college educations, buy a second home or renovate their existing home. And for those homeowners with a 1-year adjustable mortgage rate, refinancing offers a chance to benefit from the low, longer term interest rates. In a mortgage market as healthy as the present one, refinancing proves beneficial to those who take advantage of the prime rates. Real estate owners who once lacked enough equity to refinance, coupled with the strict lending criteria of the banks of the earlier Nineties, are faced with a win-win win-win adj. Of or being a situation in which the outcome benefits each of two often opposing groups: a win-win proposition for the buyer and the seller. situation today. Not only have rates gone, down but there has been appreciation in the value of the apartments over the past three years. The savvy homeowner and buyer have the advantage to gain from today's hot market. Refinancing now will yield greater benefits later. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion