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Mortgage Experts Offer Five Reasons to Refinance Your Home Now
Bills.com Reports Refinancing as One of Consumers' Top Concerns
| Source: Bills.com
SAN MATEO, CA--(Marketwire - February 2, 2010) - Mortgage experts from Bills.com, the leading
resource for free, objective and expert money advice, today advised that
consumers considering a home
refinance should begin the process now. Further, the company reported
that the most frequently asked question of its Ask Bill expert advice center
concerned home refinancing rates and recommendations.
"Market conditions have aligned to make this a perfect environment for home
refinancing," said Ethan Ewing, president of Bills.com. "Low rates and
compelling opportunities to refinance into shorter term loans have arrived
at the same time as large consumer demand."
Ask Bill is a free service that allows consumers to ask any money question
of human experts and receive personalized advice to their inquiries. One of
the most frequently asked questions of 2009 concerned
interest rates for home refinancing.
This high level of interest on behalf of consumers corresponds to favorable
market conditions for refinancing. Specifically, these factors include:
1. Interest rates continue to hover around all-time lows, making it
sensible for anyone carrying a higher rate interest loan to consider refinancing. With
some exceptions, a 1/2-point to a 1-point drop in rate will generally make
refinancing worthwhile.
2. Low fixed interest rates make converting from an adjustable rate loan
into a fixed 15- or 30-year loan a smart move. Even if the adjustable
payment is currently lower than a fixed rate payment, when rates rise again
the monthly payment on an adjustable rate loan will quickly leapfrog a
fixed rate loan.
3. The current difference between fixed 15-year and 30-year interest rates
is significant, making refinancing into a shorter-term loan a compelling
opportunity. This can save hundreds of thousands of dollars over the life
of a loan and shorten the time to payoff with sometimes only a slight
increase in monthly payment.
4. FHA efficiency mortgages provide consumers with an opportunity to
refinance into a loan that will help pay for home efficiency improvements.
These loans are meant to provide consumers with a way to make energy
efficient improvements to their home as part of an origination or
refinancing. This is a great way for homeowners to cost-effectively lower
their utility bills through basic home repairs.
5. Those homeowners whose equity situation has steadily deteriorated,
leaving them with little, no or negative equity in their homes, should ask
their lender or broker for help. Most have some flexibility with government
programs aimed at reducing rates for homeowners in weak equity positions.
"This interest rate environment provides opportunities for those trying to
escape high interest rates as well as those making savvy long-term
financial decisions," continued Ewing. "Anyone considering a home refinance
should move quickly to lock in rates now."
To learn more about home refinancing or to ask your question of Ask Bill,
visit Bills.com and its interactive set of financial tools at
http://www.bills.com.
About Bills.com
Bills.com is the leading resource for free and personalized money help.
Founded by a group of financial experts intent on helping consumers save
time, money and stress, Bills.com is designed to give consumers confidence
in making money decisions. The site offers useful information, powerful
tools, and real money experts to give consumers the information they need
in the way they want it.