Wednesday, January 31, 2007

Cash Out Refinancing Rates - Good Time To Refinance?

At the present time mortgage rates are steadily going up. What does that spell for those seeking to lower mortgage payments, payoff credit card debt and opt for cash out. That all depends on three factors

1. The type of refinance loan program you choose.
2. Getting a good deal on rates
3. locking in rates on time

So yes it's all about rates and fees. Not so long ago I blogged about home mortgage refinancing vs. home equity loans and how to best deal with mounting debt issues.The issue had to do with the desparate measures people take to deal with defaulting on a car or home loan. Obviously getting financial counseling is one of them. Why? Although learning how to manage money is essential to maintaining or raising the quality of life many choose to get help when it's late in the game instead of getting this vital education and training before the game begins.

Now standing deep in debt homeowners decide to run for help. The fact is depending on the depth of debt, your options may prove much more limited than you realize. That said, when working income is just not there and credit card interest and penalty fees are mounting up more desparate measures are needed to deal with defaulting on a loan.

Home Equity Loan - A Solution?
Many homeowners opt early in the process to take out a home equity loan or home refinance loan. When rates began to decline in November and December there is no wonder why refinance applications went up. But now there is a slightly different reality, at least for the moment. Rates are climbing. What to do?

Cash Out Mortgage Refinance Options
There is always the trusty home equity loan program. But rates on these loans are higher than rates on a home refinance loan with the cash out option. That said refinancing may be your best bet.