Homeowners have had various difficulties and trials within the housing industry as of late, but there are some opportunities that have been made available to help homeowners with the affordability of their home. Interest rates on home loans have been quite low over the past months and, as a result, homeowners have been able to take advantage of refinancing opportunities in a variety of ways.
One way that homeowners have used refinancing as a way to lower their overall mortgage costs is by putting cash towards their mortgage principal at the time of refinancing. Many homeowners have refinanced to longer-term mortgages, like a 30-year fixed mortgage, as a way to lower their monthly mortgage payment obligation, but homeowners who have used cash-in refinancing have set themselves on a course to erase their mortgage debt faster and at a lower overall cost.
While this option may not be available for all homeowners, low rates have made shorter-term mortgages more affordable, in certain cases, and homeowners who have been able to afford the costs of cash-in refinancing, have not only reduced the timeframe during which they will be repaying their mortgage, but they have been able to lower the total cost they will pay on their home as well.
Homeowners who have attempted to lower their overall home loan costs have done so for obvious reasons, but cash-in options have also been used by homeowners who simply want to own their home outright in a shorter period of time. Understandably, various mortgage difficulties like underwater home loans have caused trouble for homeowners who are attempting to refinance, but in some cases, cash-in has been used to help homeowners refinance an underwater mortgage.
Underwater assistance plans are available through programs like the Home Affordable Refinance Program and through the FHA, but some homeowners who may not be in a severe underwater situation and were looking for refinancing opportunities were able to put money towards their underwater mortgage and refinance by making up the difference.
Again, the number of homeowners who are in a position to put money towards their mortgage may not be high, but cash-in options along with refinancing opportunities have been one way that homeowners have lowered the total costs on their mortgage. Homeowners who may qualify for cash-in refinancing will typically need equity in their home, a good credit score, and obviously the money that will be required to meet the costs of this type of refinancing.
Yet, homeowners who have been successful at cash-in refinancing have also researched various offers from different financial institutions to make sure they got the most affordable refinancing opportunity for their situation.