In today's Real Estate market, many home owners are looking for ways to reduce their cost relative to their house payment. One way to do this is to refinance their property and reduce their mortgage payment.
Short refinancing is the key to saving money and reducing your payment. Mortgage companies are looking to invite customers into the arena of refinancing by taking their loans and recalculating them with a smaller interest rate and reducing the customers monthly payment.
A short refinance is a loan where the first lender agrees to drop part of the balance so a new loan can get approved. The short refinance offers the original bank more money than a short sale or a foreclosure. A lower balance on a new 30 year fixed rate loan with a low interest rate can lower your monthly payments by hundreds of dollars. This savings can amount to thousands of dollars a year.
The question would be raised of why would my current bank or lender agree to release part of my balance so I could get a loan somewhere else? The answer is simple: The short refinance offers the old bank more money than a short sale or a foreclosure. The new loan is not a government bailout loan apart of the governments.
These days the best thing to do is to find ways to save money by looking at your existing financial situation. Many times the answer to save money is directly in front of you simply by altering your existing situation with your current financial investments.
Using companies who are looking for customers to help is the best thing you can do to help yourself. Many companies are going through tough times now and refinancing is a way for them to make money. It of course helps you the customer as well so you should reach out to those companies because they have fast systems in place to assist you in these programs.
