What Happens When Home Mortgages Refinance?

You’ve probably heard people talking about how loan modification companies can help home mortgages refinance. Still, refinancing is a pretty broad word. While some homeowners might want to decrease their monthly payments, for example, others pursue home loan modifications to lower their total interest.

So, what can refinancing your mortgage do for you?

Adjust Your Interest

Your interest rate determines your monthly mortgage payments, so a lower rate means lower payments. For example, a $150,000 mortgage over 30 years will cost you $899 a month at 6 percent interest, while that same mortgage is only $852 per month at 5.5 percent. You could save $47 a month, or $564 a year!

Adjust Your Mortgage Length

If you think you need more time to pay back your loan, extending your mortgage from 15 years to 30 will allow you to decrease your monthly payments. Alternatively, you could switch from a 30-year mortgage to a 15-year mortgage to decrease your total interest costs by increasing your monthly payments.

For more information on mortgage refinancing, start browsing loan modification companies today! Calculate your own potential savings with the handy mortgage calculator to your right.

It’s Never Too Late for a Home Loan Modification

If your house is in active foreclosure, you might think you missed the boat on a home loan modification, however this is not the case. Even during foreclosure, it’s never too late for loan modification companies to help you negotiate refinancing options with your lender.

How? As long as your family is still in your home, you still have time to set up a home loan modification with your bank. A loan modification can ultimately reverse your foreclosure, lower your monthly payments, decrease your interest rate, and even forgive certain penalties.

This is because a loan modification is your chance to convince your lender that you can afford to keep your house. Maybe you’ve had a recent hardship that will make your delinquent payments more understandable. Or perhaps you expect your income to increase over the coming years because of a new job or home boarder.

Regardless of your timeframe, the best way to ask for loan modification help is by consulting loan modification companies. These services will help you present your case to the bank, and they won’t even accept a fee unless your home loan modification is successful.

Loan Modification Help: How Did We Get into This Mess?

Many homeowners are surprised to find themselves facing foreclosure. They committed to what they believed to be an affordable mortgage — with the potential of refinancing — only to get stuck with astronomical interest rates and a house worth less than its debt. If you're looking for loan modification help, it's important to understand what went wrong, and what you can do make it right again.

We can trace much of the financial crisis — and the difficulties faced by individual homeowners — to the rise in sub-prime lending in the years leading up to the recession. Sub-prime borrowers are loan candidates with poor credit histories who are at a heightened risk of defaulting on their loans. Until 2004, only 10% of mortgages were sub-prime mortgages, but government deregulation and greed increased the rate of sub-prime mortgages to 20% during the height of the housing bubble in 2005 and 2006. During this time, many sub-prime lenders committed to mortgages they thought they could afford, often because they were unable to understand the exact provisions of their loan agreements.

Who could have? It's unrealistic to expect everyday people to understand the legalese of mortgage contracts. That's where loan modification companies come in. Specialists at these companies will advocate for lower interest rates and monthly payments, in addition to explaining your modification in terms you'll understand. Banks may have gotten us into this mess, but loan modification companies can get us out.

Bulldozing Your House? Try a Home Loan Modification First

One of the weirdest homeowner stories of late involves a man from Ohio who actually bulldozed his $350,000 home before the bank could seize it. The man said he demolished his house to “send a message” to banks everywhere, and a surprising number of Americans have rallied to support him. But before you jack a 'dozer from a nearby construction site, consider some advice — if you're behind on your monthly payments, a home loan modification can help.

Instead of demolishing your precious walls and floors, why not demolish those high interest rates and monthly payments? A loan modification firm like www.WeFixMortgages.com features experienced staff members willing to go to bat for you and negotiate with your bank to make your mortgage more affordable. After a loan modification, you'll owe smaller amounts of money each month, and your penalties and late fees might even be forgiven.

Nobody wants the bank to seize their home, and loan modification companies make it possible to avoid foreclosure without operating any heavy machinery. So turn off that 'dozer — your situation isn't as dire as you think.