The past couple of years have been quite a roller coaster ride for the real estate industry. Several home loan corporations, banks and financial corporations have gone bankrupt and foreclosures rocked the banking and financial scene. Like most Americans, I have had my own financial problems the past year but I am more than proud to say I have kept my home and stayed out of foreclosure. This, I successfully accomplished when our family decided to refinance my home loan.
My family was already halfway through our mortgage payments and we were hoping to get the home loan over and done with, in the next five years. However, times were hard and my husband, who worked at a reputable bank at that time, was among the tens and thousands of Americans who were laid off work. We had difficulties meeting credit card payments as well as paying utility bills, much more meeting deadlines on our mortgage payments. Thus came the idea, why not refinance my home loan? Indeed, we had to think of ways to save our home from foreclosure and having the family move out was definitely unthinkable.
Like many of our neighbors, we were on the brink of a foreclosure after we had missed on several mortgage payments on our home. We also considered selling out but it was too painful to let go of a place that you and your family have learned to call home. There were several things we had to consider before we finally got to decide whether or not to refinance my home loan. Among them was the question: are we getting a good deal?
Getting a good deal at refinancing means that you will be refinancing the loan at an interest rate that is lower than the previous loan. That way, you will be saving a few thousand dollars on interest payments in the long run. It is also advised that you consider the monthly payments. Be realistic and refinance your loans on terms that you can actually meet. For example, if you are unable to make monthly payments of $1200 on your current loan, make sure that you are able to get a deal that will allow you some breathing space on your monthly payments. How much can your budget actually afford?
Lastly, it will also be good to consider if you really are able to save up in the long run. What are the terms? How long will you be making payments on your home, 10 years? 20 years? Do the math on your monthly payments and check your savings.
It really was a good thing that we were able to refinance my home loan at a very acceptable rate. Not only was the interest rate a tad bit lower than the old loan, the new terms gave me enough space to make sure that I would meet the subsequent payments on the loan. We were more than happy to refinance my home loan. There was no doubt about it. Refinancing helped save the residence we have learned to call home.