Frugal Alert: Home Loan Refinancing

January 24, 2012

Finances

When I was an apartment dweller, and even after I’d bought my first home, any discussion or mention of mortgage financing promptly put me to sleep. Zzzzzz. What could be more boring??

Now that I am an experienced home owner with a ton of kids, a remodeled kitchen, and my sights hopeful for more home improvements, home refinancing has taken on a brand new, bright, and shiny appearance. šŸ™‚ When we bought our house, mortgage rates were right around 8 to 12 percent. Outrageously high, in my opinion. WAY too high. We got some assistance through the United States Department of Agriculture, getting a secure loan at a low interest rate for first-time homeowners. We were also willing to buy a clunker of a home and fix it up. Our home equity has shot through the roof, even in these shaky economic times. Eventually, we will refinance. We will probably go with a smaller company, too.

Now that the housing industry has shrunk and investors are nervous, interest rates have been creeping down for several years. After the housing bubble burst, the banks need business. You can use this to your advantage if you already own a home. Refinancing a mortgage can save you TONS of money. As a savvy, frugal homeowner, it really helps to check the rates now and again. Mortgage companies like Aurora loan and others are eager to help homeowners refinance. It can be such a win-win situation. You get a low interest refinance loan, the lender gets your business.

The federal government has a terrific website called USA.gov. They maintain a list of mortgage programs, mortgage calculators, articles, tips and more for squeezing out every last buck of your loan. There’s also information on veteran’s loans and rural housing assistance. Good stuff. I was listening to Clark Howard over the weekend, and he was talking with a lady who refinanced her 7.9 percent mortgage for 3 percent!! The clincher is qualifying for such low loans. Your credit must be really good.

Check out the websites and see if refinancing is helpful. In this day and age of shaky Wall Street investing and political upheaval, it’s best to get out of debt ASAP.

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One Response to “Frugal Alert: Home Loan Refinancing”

  1. Lin Says:

    I was just thinking about that–I heard that the rates were like 3%. Thanks for the nudge–I think I’m calling my bank tomorrow.