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.
1 comments:
A loan modification program subsidized by President Obama's stimulus plan is available help to delinquent homeowners to lower their monthly payment.
obama loan modification
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