Refinance is a process in which existing loan is repaid by means of new loan. Main aim of refinance is to save some amount towards interest payments each month. As is quite obvious, refinance loan is taken at lower interest rates as compared to the interest rates attached with existing loan . Rate at which interest is applied in refinance loan is called as refinance loan rate. Understanding refinance loan rate is very crucial for a person. Refinance loan rate mostly refers to the mortgage refinance loan rate. This is because in most of cases, refinance loans are taken for repaying earlier mortgage or home loans. Lower refinance rate helps a person in lowering monthly payments and investing saved amount in other avenues.
Since there are many mortgage and financial institutions that provide refinance loan, it is very important that a person check the refinance loan rate of all the lending institutions. This would help him in getting necessary amount at lowest possible refinance loan rate. However, there are many other aspects attached with refinance loan that should be understood otherwise a person may end up paying more amounts despite having low refinance loan rate. In general, it is seen that if refinance loan rate is not 2% or more lower than the existing loan rate, it is no use obtaining refinance loan. Some people do take loans where refinance loan rate is 0.5-1% lower than existing loan rate and end up paying high monthly installment.
Low refinance loan rate can benefit a person more if refinance loan is taken for longer repayment periods. This is because longer repayment periods have lower monthly installment. For example, if a person has taken a home loan for a period of 30 years and he has already paid installments for 18 years, benefits of low refinance loan rate are obtained when refinance loan is taken for a period of 25-30 years rather than 12 years. Though there are people who dont like to prolong loan obligations, repaying mortgage loans earlier require more monthly amounts.
If refinance loan is being taken for the purpose of debt consolidation, refinance loan rate becomes even more important. Refinance loan rate in such case should be lower than the average interest rates of loans that have been consolidated. Since credit card debts are among highest interest rates debts, it really makes sense to repay such debts by means of low rate consolidation through refinance. Calculations involved in above process are quite complex and thus, it is better if a person hires services of mortgage professionals or experts to ensure that he actually saves some money through refinance loan rate.
Getting refinance loan rate is not a difficult task. A person can contact all lenders locally for getting these rates. One of best ways of getting lowest refinance loan rate is by logging on to those web sites that allow a person in comparing different lenders. For getting refinance loan rates of various lenders, a person is required to provide details like place of residence, zip code, refinance loan amount required, income, details of existing loans, credit rating etc. Refinance loan rates vary not only from one lender to another, but also from one state to another. There are some web sites like Mortgage Amerivalue that helps a person in getting lowest refinance loan rates from qualified lenders.
30-year fixed rate mortgage loan is available at 5.46% whereas 15-year fixed mortgage loans are available at 5.05%. For a 3/1 ARM refinance loan, interest rate is 5.13% whereas for a 5/1 ARM loans, interest rate is 5.20%.30-year fixed jumbo mortgage loans are available at 6.58%. All rates mentioned above are lower than their last week values. This shows that there is a downward trend in mortgage rates and thus, it does make sense to refinance existing mortgage loans. Interest rates mentioned above are national weighted averages and interest rates of individual lenders may vary to some extent.
E Loan is one source that can help a person in getting lowest refinance loan rates. For getting refinance loan rates, there are some particulars that have to be provided by a person. Let us understand this with the help of an example. If a person living in California wishes to get a refinance loan for $100000 on a property that has an estimated value of $120000, following refinance loan rates are provided:
For 1 year ARM loan for 30 years, refinance loan rate is 5.375%. Refinance loan rate for a period of 3 Year ARM for 30 year fixed loan is 4.5%. Similarly, if a person wishes to get a refinance loan for as 5 year ARM loan payable in 30 years and with fixed interest rate for 5 years, he has to pay refinance loan rate at 4.625%. For 15 year fixed rate refinance loan, interest rate is 4.875%. Refinance loan rate attached with 20-year and 30-year fixed mortgages is 5.375%.
Credit score of a person plays a crucial role in determining the refinance loan rate. If a person has excellent or good credit, he can easily qualify for lower interest rates. With bad credit, getting low refinance loan rate becomes difficult.
FHA Refinance loan is one option that helps a person in repaying existing loan at low interest rates. Through FHA mortgage loans, a person can easily lower his monthly payments. There are many sources like Mortgage Expo in United States that help a person in getting FHA Refinance loans at low rates. Mortgage Expo specializes in providing low FHA refinance loan rate in a simple, secured and hassle free manner. Refinance loan rate quote can be obtained on no-obligation basis and free of cost. Mortgage experts associated with Mortgage Expo helps a person in getting all the formalities completed for mortgage refinance loan. All refinance loan solutions are provided after complete understanding of financial circumstances and needs of clients.