Loan Interest Rate has Reached a New Low: Time to Consider Refinance（2）

• Consolidated debt: if you have several loans, merging them into one loan can help you reduce your interest rate and the combined payment is easier to repay. For example: you now have 3 credit cards and all three have different interest rates. You can claim the debt of the three credit cards and pay them off together. This has the advantage of allowing you to get lower interest without paying separately.

• Change your loan type: if you use a variable rate loan, you can use Refinance to switch to a fixed rate loan. For example, when the economy is sluggish and the floating market interest rate is high, if you use Refinance to activate a fixed interest rate (usually between 4% and 5%), this will help the lender to save a lot of interest.

• Pay off payments due: Some payments need to be paid back within a certain period of time, but if you don't have as much money to pay together, you can use Refinance to give you more time to pay off the debt.

What are the famous refinancing loan companies in the United States?

These refinance loan companies can not only find the loan amount online, but many also provide online refinancing services: everything is done online. These refinancing services have reduced the rent of physical stores and can be lowered in terms of price.

1. Quicken Loans: The largest online lending company in the United States, in addition to the 15 and 30 year term options, you can also choose a fixed rate loan term ranging from 8 to 30 years.

2. Rocket Mortgage: a subsidiary of Quicken Loans, depending on your credit score, it can help you organize the interest and loan structure that suit you, and then help you lock in that interest rate.

3. AmeriSave: The advertisement will not require an SSN or the credit report drawn will harm the credit report, you can obtain the interest rate and the pre-qualification in three minutes.

4. Paramount Bank: provides quotes for different types of loans, including Jumbo, Conventional, FHA, VA, etc., announces that the loans can be customized and guarantee the lowest interest rate.

5. Better Mortgage Corporation: Very intuitive and easy-to-use interface, which can provide quotes through simple-to-ask house type questions and market assessment, completed online, with very little human intervention , so if you just want to test the water temperature and don't want to be disturbed You can first try this platform to get an interest rate benchmark.

What are the disadvantages of refinancing?

Not everyone is able to apply for refinancing. In fact, the cost of early refinancing can sometimes be high. What are the disadvantages of refinancing?

• Transaction costs: refinancing is actually very expensive, especially for home loans, and the closing cost can reach several thousand dollars. Before applying for refinancing, make sure you understand the processing costs and processing of the lender.

• Higher interest costs: some people may find that refinancing is counterproductive, especially if you extend the term of the loan, you may have to pay more interest on the debt.

• Loss of loan capacity: because refinancing is also a loan request, remember that all loan-related transactions will affect your credit. Maybe you will reduce your credit due to refinancing.

When is refinancing most appropriate?

Obviously, most people think that refinancing is saving money, but in the following cases, you can consider refinancing appropriately:

• The credit score becomes higher: if you apply for a loan when the credit is low, the relative interest rate may be higher than the general public, but after a while, your credit score may be higher, you can consider refinancing Pay off your debt at a lower interest rate.

• Renovation of a house: if you buy a house, and after a certain time, the mortgage interest rate is low, or the mortgage is almost finished, you can request a refinancing to refresh projects that require loans to long-term home, such as adding a pool, renovating the bedroom, renovating the property, assuming you can use Refinance to pay off the mortgage, and then use the remaining money to make the payments. expenses that need to be changed at home.