Bank Of America Refinance Is A Stimulus Plan For Mortgage Refinancing

By Sean A. Kelly

Bank of America refinance is a new mortgage refinancing option available thanks to President Obama’s stimulus plan. Whether you’re looking to lower your monthly mortgage payment, switch to a fixed rate, or even get cash out to finance a major expense, Bank of America has the mortgage refinance for your needs. They have both fixed rate and adjustable rate mortgage refinance options. The fixed-rate mortgage refinance option provides you the ability to have predictable monthly payments. If you like the idea of knowing how much your house payment will be every month, you may want to consider fixed-rate mortgage refinance loans. Fixed-rate mortgage refinance loans are available in a variety of repayment terms, with 30, 20 and 15 years being the most popular. Maybe you want to take advantage of low rates to lower your monthly payments. Or maybe you want to lock in your rate by switching from an adjustable-rate mortgage (ARM). Either way, the fixed-rate mortgage is a popular choice for refinancing. With adjustable-rate mortgage refinance, a lower initial interest mortgage may be quite attractive. You can save at the start of your loan with an adjustable-rate mortgage (ARM). An ARM refinance may provide a low interest rate for an initial payment period, making the initial monthly payments less than those a fixed-rate mortgage refinance usually offers. Refinancing into an adjustable-rate mortgage could be a good way to lower your monthly payments in the short term, but there may be other things to consider, including fluctuation of interest rates and monthly payments. Bank of America refinance rates can probably be the best rates that you will find and you can checkout more information about them on their website.

Bank of America is an established and famous bank in the country and they provide you help with bank of America refinance stable plans that can allow you to make use of your money intelligently. The positives are that Bank of America has convenient locations, a variety of loan products to choose from and competitive rates. However, you may want to consider that they may have high fees, and can have a lengthy loan process. When considering refinancing your home you may need to consider the costs of doing the loan to determine whether it makes sense to do so. It may always be a good idea to shop around and compare lenders to ensure you are getting the best deal. There are a host of avenues where you can get free quotes from different lenders. If you are looking into a mortgage or specifically a Bank of America Refinance to lock in a low or fixed rate mortgage, you may like to consider the following.

Before you decide to go for Bank of America refi you may like to take these factors into consideration. Are your ARM rates rising above market rates? As interest rates increase, ARM loan payments do too. Homeowners concerned about payments, and whose rates are higher than current fixed mortgage interest rates, might consider a refinance mortgage. Many economists forecast basically stable interest rates through Thanksgiving or so, but with the amount of uncertainty in financial markets, there’s no telling. You can begin the process with a mortgage lender and have him or her watch rates for you to establish a good time to lock your loan. You may like to ask yourself the question-Is refinancing affordable?

Refinancing involves expenses that can total around 2% of the total loan amount. Typically, financial advisors may suggest that a refinance mortgage is worthwhile if the savings on payments will pay for the refinancing costs within two years. Homeowners can calculate their own “break-even” date by dividing the up-front cost (the figure on the Good Faith Estimate form) by the anticipated monthly savings. The answer is the number of months it will take to pay off the refinance — and sooner is better. Have you grown roots? Homeowners who plan to stay in their home for a long period of time might find that a refinance mortgage makes sense. If you have a long term left on your mortgage payments, and your rate is higher than market rates — or you have an ARM or balloon-payment loan and want the security of a fixed rate — you may meet the “break-even” criteria outlined above. All of these and many others make up the list of reasons homeowners may choose to refinance their homes. Current interest rates are only part of the equation. It’s advisable that you establish your goals, learn about your options, and make the decision that’s best for you and your timetable.

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