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Refinance Debt Article
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Mortgage Refinance
from:Not everyone that owns a home has a mortgage, but a large percentage of homeowners have mortgages on their home. Not only do they have a mortgage, but will probably have one for many years. Years ago, when couples or individuals purchased a home, they got a mortgage for the shortest term possible, with many having their mortgage paid off in ten years. With the rising costs of real estate and homes, people are going for long and longer terms on their mortgages. Common mortgages today are 20 to 30 year mortgages. However, interest rates do not stay the same over a 20 to 30 year span so many people do a mortgage refinance on their home. In fact, many do a mortgage refinance many times in the life of their loans.
Lending institutions do a mortgage refinance for many of their customers. In fact, they are quite use to having them come in for a mortgage refinance. Interest rates today are constantly changing and smart homeowners take advantage of when they interest rates are low as a good time to do a mortgage refinance. Even a decrease of 1% in interest may not seem like much, but when you're borrowing a large sum of money over many years, you're paying a lot of interest. Even 1% can add up to a lot of money over the term of the loan. While banks have different ways of amortizing the interest over many years, you can do a hypothetical scenario. If you borrow $100,000, 1% of that is $1,000. Multiply that $1,000 times the number of years you have your mortgage and you have a very large sum. So, you can see why many choose to do a mortgage refinance when the interest rates go down.
When you take out a mortgage for the first time you will be charged certain fees besides the money you borrow. These fees are usually one-time fees for appraisal of your home, title insurance, loan document preparation fees, etc. Sometime these fees can add up to $1,000 to $2,000. Many people decide against a doing a mortgage refinance because of these fees. They feel they aren't saving that much if they are adding additional dollars onto their loan balance at the same time. In some cases, this may be the case, especially if it's an individual that keeps refinancing at different banks. Each time you go to a different bank, they will have to charge the fees, whereas if you do your mortgage refinance at that same bank, you can usually avoid the fees. In most cases, however, the amount you will save on interest will more than pay for your fees in addition to giving you lower monthly payments.
Refinance Debt News
BSkyB to raise $600 million in bond issue - WTOP Radio
LONDON (AP) - Satellite broadcaster British Sky Broadcasting Group PLC said Tuesday it plans to raise $600 million in a bond issue to refinance existing debt and acquire new businesses. BSkyB, whose biggest shareholder is Rupert Murdoch's News Corp ...
Read more...UPDATE 1-Cemex in talks with five banks to refinance debt - Reuters
MONTERREY, Mexico, Nov 14 (Reuters) - Cemex, the world's No. 3 cement maker, said on Friday it was in talks with five banks to refinance part of its debt. Cemex (CMXCPO.MX: Quote , Profile , Research , Stock Buzz )(CX.N: Quote , Profile , Research ...
Read more...UPDATE 1-Thai AIS sees Q4 revenue up, to refinance debt - Reuters
BANGKOK, Nov 14 (Reuters) - Thailand's top mobile phone firm, Advanced Info Service ADVA.BK, said on Friday it expected revenue in the fourth quarter to rise by 3-5 percent from the third quarter due to higher mobile use during the festive season ...
Read more...Mall owner may file for bankruptcy - Battle Creek Enquirer
General Growth Properties, parent company of Battle Creek's Lakeview Square Mall, might file for bankruptcy as it struggles to refinance debt. Shares of General Growth Properties tumbled 64 percent on Tuesday, after the company announced Monday it ...
Read more...Ala Moana Center owner may default on debt, file bankruptcy - Honolulu Advertiser
Shares in General Growth Properties Inc., owner of Ala Moana Center and Ward Centers, plummeted yesterday after the company said it may file for bankruptcy if it can't refinance or extend nearly $1 billion in debt due next month. The nation's second ...
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