It is a commonly asked question in today’s real estate market that how much I can save with refinancing. After that the Obama Mortgage Bailout Plan will begin to take effect at the beginning of March it has now become even more important to know that what will be the benefits of refinancing.

For those who have decided to refinance they are going to be offered lower mortgages rates by mortgage lenders as many lenders are going to get incentives to offer lower mortgage rates. As you have now the opportunity to refinance at lower rates, the question arises how much will you really save?

You cannot get the answer to this question without analyzing your current mortgage loan.  According to the general rule of thumb you should refinance if you are going to reduce your mortgage by a full percentage point. In order to determine the exact amount that you will save on your monthly payments if you opt to refinancing to a lower rate you can use the mortgage calculator.

It is now very attractive to find out lenders who are in reality offering the low rates that are being advertised as nowadays the government is encouraging home owners to refinance.

All such ads advertising for rates under 5% are seen by us but there are very few home owners that have got the chance to lock in at these offered rates.  Now at this time you may get the lower rates as lenders will get incentives to offer you these rates. Read the full story

During the past 30 years, interest rates have reduced and moved significantly in a financial tide of Bad Credit Home Refinance. For example rates for traditional 30 year, fixed rate mortgages were around 18 percent near the beginning of the 1980s, right now, we can see that the interest rates have lowered up to 5 percent and some recent days have witnessed that the level of interest rates have lowered down up to 4 percent.

Those home owners who have bought their homes when interest rates were far high than the today’s rates, are now considering mortgage refinance in order to get the benefit of today’s lower rates. If you’re also one of those homeowners, then you should have complete knowledge about the expected costs that might be involved in refinancing your home, some of these are appraisal, title insurance, and a loan origination fee. You can use the general rule of thumb called the 2 percent rule in order to figure out that this total cost of refinancing is either higher or lower than the potential money you can save by refinancing. Simply, in this rule it is mentioned that the percentage difference between the current interest rate you have on your loan and the new rate being offered should not be less than 2 points. Refinancing could be most beneficial for those borrowers who have bought their homes in 1980’s and have got 18 percent interest rate, and if they go with the refinancing option they will get the interest rate of 4 percent, which gives them a huge difference of 14 percent.

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