What You Should Know Before You Refinance Your Mortgage

June 7, 2011 - PRLog -- House prices in the US are crashing again. With 18 million households across the country on the verge of defaulting on their mortgage, how will the fall in house prices affect your mortgage?

Well if you own a house for $300,000 with a 90 percent mortgage and house prices fall, the percentage of the house that is covered by the mortgage will increase. However your mortgage repayments will only change if there is a change in interest.

And as lenders are threatened with over-valued mortgages, interest rates may be pushed up. Which means if you’ve maxed your borrowing (and repaying) power, a rise in interest rates and mortgage repayments could cripple you financially – and eventually be forced into foreclosure. But before you throw in the towel and head for foreclosure, consider refinancing your mortgage to save money on interest payments and pay off your home loan faster.

Read more at http://www.economywatch.com/economy-business-and-finance-news/seven-questions-to-ask-before-refinancing-your-mortgage.03-06.html

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