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Refinanced Homes

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Refinancing may refer to the replacement of an existing debt obligation with a debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage.

If the replacement of debt occurs under financial distress, refinancing might be referred to as debt restructuring.

A loan (debt) might be refinanced for various reasons:

  1. To take advantage of a better interest rate (a reduced monthly payment or a reduced term)
  2. To consolidate other debt(s) into one loan (a potentially longer/shorter term contingent on interest rate differential and fees)
  3. To reduce the monthly repayment amount (often for a longer term, contingent on interest rate differential and fees)
  4. To reduce or alter risk (e.g. switching from a variable-rate to a fixed-rate loan)
  5. To free up cash (often for a longer term, contingent on interest rate differential and fees)

Refinancing for reasons 2, 3, and 5 are usually undertaken by borrowers who are in financial difficulty in order to reduce their monthly repayment obligations, with the penalty that they will take longer to pay off their debt.

In the context of personal (as opposed to corporate) finance, refinancing multiple debts makes management of the debt easier. If high-interest debt, such as credit card debt, is consolidated into the home mortgage, the borrower is able to pay off the remaining debt at mortgage rates over a longer period.

For home mortgages in the United States, there may be tax advantages available with refinancing, particularly if one does not pay Alternative Minimum Tax.

From Wikipedia under the GNU Free Documentation License
Sat May 5 15:52:42 2012

refinance

From Wiktionary under the GNU Free Documentation License
Sat May 5 15:52:44 2012



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New in HARP 2 Program - OC METRO
network.ocmetrobusiness.com
New in HARP 2 Program - OC METRO

Dr. Shab Kavandi, network.ocmetrobusiness.com
2012-04-19 12:28:02

One of the most biggest change in HARP 2.0 is that there is no longer a limit on how far underwater your mortgage can be and still be able to refinance . Previously, there was a 125 percent loan-to-value limit on mortgages refinanced through HARP -- that is, the balance owed on your mortgage could be no more than 25 percent greater than the value of your home . Under the new rules, it doesn't matter how much your home has fallen in value, you can still qualify to ...

Borrowers: Foreclosed , Struggling or Underwater? You May be ...
fraserlawfirm.com
Borrowers: Foreclosed , Struggling or Underwater? You May be ...

wp_admin, fraserlawfirm.com
2012-04-20 14:42:42

The settlement is designed to provide restitution to borrowers who were improperly foreclosed on between 2008 and 2011. In addition, borrowers who are currently struggling with their mortgage payments or have homes that ...

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