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Wednesday, August 09, 2006

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Worried about your mortgage loan?? Nothing to worry. Relax. Time has come for you to get rid of your worries, simple it sounds. Yes, the only way to relax your loan burden is REFINANCING.

Refinancing?

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Refinancing is nothing but simply the act of getting a second loan to pay off the original with new interest rates and new repayment schedule. This method lowers your monthly payment as the new loan will be a smaller amount than the original mortgage loan.

Best time to refinance?

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The apt moment to refinance a mortgage is after a major portion of the mortgage has been repaid and sufficient equity has built up as equity is the important factor which will secure the refinance loan. It is essential that we have enough to cover the loan amount.

Nextly, one has to be clever enough to apply for their refinance loan at a time when interest rates are lower than when you took the original mortgage. The lower interest rate acts as an additional bonus to refinancing.

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Your monthly payment depends on the tenure you choose and the amount that needs to be paid of the original loan. In 95% cases, the monthly payment amount on refinancing is low and bearable by any normal individual.

INDICATIONS FOR THE RIGHT TIME TO REFINANCE??

There are plenty of indications to know the right time to refinance, these are a few among them. Watching the news or reading finance journals to determine what national interest rates are set at and know whether they are
likely to increase or decrease in the near future.

Next, you may also notice lenders offering special rates or promotions for a limited time. What one need to do is inquire whether these special rates are legal and if yes, reason out if that will suit your needs or will you have to wait for even low rates.

A variety of good opportunities come in your way to stimulate borrowing, but be sure to select the correct one that suits your needs.

DO NOT LET OPPORTUNITIES GO AWAY JUST BECAUSE YOU ARE UNSURE.

IN SHORT, REFINANCE IS JUST A WAY TO GET RID OF YOUR OLD LOAN WITH A NEW LOAN.


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