The increased number of mortgage companies in the US has actually made the market competition fears for lenders. In order to survive in the market they often resort to low interest rates, simple re-payment options, bad credit acceptance and more. The current situation has actually turned the market in favor of borrowers. Borrowers taking advantage of declining and increasingly asking mortgage lenders to help them refinance their homes!
It's a great time to refinance for a couple of reasons:
Rates are low right now and a lot of people have seen appreciation of property values. So consumers have equity in their property and if they have a higher rate or an adjustable rate, it's the right time to put things into something more standard (for example - consolidating debt).
Also the tax filing season at the moment means a good time to trade up to a lower mortgage rate!
The first benefit of mortgage loans is that there are many types of mortgage loans and are available and used worldwide. The flexibility of interest rates also adds to the benefits of mortgage loans. Here, the interest rates may be fixed for the life of the loan or can be changed at certain predefined periods. The amount paid per period and the frequency of payments; in some cases, the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid.
LendAdvisors.com - Blog that helps you with Real Estate, Mortgages & Refinance.
