| When Should You Refinance Your Mortgage? There | | | | minus closing costs.Ohio Mortgage Bankers |
| are two primary reasons to refinance a mortgage: to | | | | AssociationTo learn more about Ohio Mortgage |
| get a more desirable rate and terms or to extract | | | | options you can check with the Ohio Mortgage |
| cash from the home's equity. Both of these reasons | | | | Bankers Association, founded in 1961. OMBA is a |
| can of course also be fulfilled!Rate-and-term | | | | statewide organization devoted exclusively to the field |
| refinancingRate-and-term refinancing pays off one | | | | of residential and commercial real estate finance. |
| loan with the proceeds from the new loan, using the | | | | OMBA's membership comprises mortgage originators |
| same property as collateral. This type of loan allows | | | | and servicers, as well as investors, and a wide variety |
| you to take advantage of lower interest rates or | | | | of mortgage industry-related firms. Mortgage banking |
| shorten the term of your mortgage to build equity | | | | firms engage directly in originating, selling, and servicing |
| faster. Rate-and-term refinancing refers to a myriad of | | | | real estate investment portfolios.Members of OMBA |
| strategies, including switching from an ARM to a fixed | | | | include mortgage bankers, mortgage brokers, banks, |
| or vice versa. For example, if you have an ARM that | | | | mortgage insurance companies, attorneys, credit |
| is set to adjust upward in a few months, you can | | | | unions, saving & loans associations etcetera.OMBA is |
| refinance into a fixed-rate mortgage. Or if you have a | | | | dedicated to the maintenance of a strong housing, |
| fixed-rate loan and you know you will move in two or | | | | residential and commercial, real estate finance system. |
| three years, you could refinance into a lower-rate 3/1 | | | | This involves support for a strong economy; a |
| hybrid ARM.Cash-out refinancingCash-out refinancing | | | | public-private partnership for the production and |
| leaves you with additional cash above the amount | | | | maintenance of single and multi family home ownership |
| needed to pay off your existing mortgage, closing | | | | opportunities; a strong secondary mortgage credit |
| costs, points and any mortgage liens. You may use the | | | | delivery system; equitable tax laws; suitable shelter for |
| additional cash for any purpose. | | | | low income families and the disadvantaged; housing |
| For example, say you bought your house for $150,000 | | | | opportunities for the nation's veterans; appropriate |
| a few years ago and borrowed $120,000. Now the | | | | environmental measures; and fair and equitable |
| house has an appraised value of $250,000 and you | | | | bankruptcy laws.OMBA consists of 145 member |
| owe $110,000. With a cash-out refinance, you could get | | | | companies which represent approximately 80% of the |
| a mortgage for $150,000. You would pay off the | | | | mortgage lending business in the State of Ohio.Louise |
| $110,000 you owe and pocket the $40,000 difference, | | | | Wasa always writes about valuable news & reviews. |