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The Raleigh Movers Present Serial Refinancing

Homeowners have been taking advantage of the low interest rates to refinance their homes and lower their monthly mortgage payments. Now, there's even serial refinancing happening nationwide. The Raleigh moving specialists found out that to keep up with the better rates, nearly 2.2 million homeowners have refinanced their mortgages at least twice since 2009. From 2006 to 2008, 3.5 million homeowners refinanced twice. Lenders these days are increasingly offering to waive some of the closing costs making it even more worthwhile to refinance. A few years ago when people were trying to refinance, it was an expensive proposition with thousands of dollars in closing costs and other fees due to the lender. It made the whole transaction not even worth the future savings. The local Raleigh movers learned that at the height of the housing boom, 86% of borrowers who refinanced took out cash and ended up with a higher loan amount. People had to pay thousands of dollars in closing costs and prepayment penalty fee unless they paid a substantial portion or all of the mortgage. So at the time, refinancing was not worth it for most people, only those who were going to fall into substantial savings and a better rate such as two percentage points more.

These days, the local Raleigh movers learned, borrowers are refinancing when rates drop as little as three-eighths of a percentage point. However because there are almost no more closing costs, lenders charge a slightly higher interest rate. The numbers vary depending on who the lender is and what type of loan the homeowner has. In order to get 1% to 1.75% of the loan amount to be applied toward the closing cost, a lender generally increases his or her rate by 0.25 percentage point or more. This allows homeowners not to have to commit to staying in that same home for years to come just to offset the upfront costs of refinancing. In turn , this affects the selling market as well, giving more freedom to homeowners to list their property on the market sooner. Thanks to no more substantial cost to refinance, people are refinancing again and again, hence the serial refinancing even if it's just a small difference. Some lenders are saying, 30% of their customers have refinanced twice or more. Of course for those with lower credit scores, refinancing might not be worth it because the rate they'll get won't be a good one. The Home Affordable Refinance Program might be a better option.