Wednesday, September 29, 2010

Money Matters Lead to an Increase in Refinanced Homes

When I first learned I would be a mom, I knew I needed to make a financial plan. From saving for a house to setting money aside for the future, my family needed a budget. So, we sat down and made a plan. As we were going through options, we talked about different financial possibilities. I wanted to make sure we didn't have to worry about trying to refinance in the future, but it turns out there may be more benefits to the process than I thought.

For many people, refinancing is a smart decision. It isn't about moving money from one bank to another. I recently learned more about this process when I talked with a friend of mine who has refinanced her home. She worked with Mortgage refinance California specialists to complete the paperwork to restructure her home mortgage from a balloon payment to a 15-year, fixed-rate mortgage.

I asked her why she made the adjustment, and she was more than willing to share the details. She bought the property as an investment before the economic crash of 2007 to 2009. When the housing market dropped, she needed to look at all her options. The balloon loan she had originally taken out allowed her to hold on to the property because of the low monthly payment. However, the loan was about to mature to the large portion of the mortgage.

In order to avoid the larger portion of the payment, she needed to refinance her mortgage. It turns out she was able to hold on to the property long enough for the market to begin to recover, and she had no problem qualifying for the refinance. In fact, she said her lender had told her refinancing was on the rise in California, as well as other states.

When money matters, consider refinancing. It may be just what you need for your financial plan.

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