Homeowners in Maryland enjoy a faster growing real estate market than many states in the US. With the average home appreciating 20% or more, even when other states are experiencing foreclosures and depreciation - home values hold steady.
This is great news for Maryland homeowners since it allows them to have alot of equity in their homes, which can leverage to finance home improvement projects and consolidate debts.
How does refinancing work?
Mortage refinancing allows you to exchange your current mortgage loan for another mortgage loan - usually a loan with better terms. Homeowners do this for two main reasons:
1. To lower the current interest rate on their mortgage, thereby lowering their monthly mortgage
payment. In some cases homeowners, who took out a mortgage when interest rates were not low can save up to 25% on their mortgage bill.
2. To take cash out of their home for a home improvement project, to consolidate debts and pay them off or to start a new business venture such as real estate investing.
How do you find the best interest rate on a refinance loan?
The internet has made it easy to find and choose mortgage lenders. But how do you find the best Maryland refinance lender for your situation? The answer is simply. Get quotes on your refinance loan.
In addition to your refinance loan interest rate, there are other terms such as loan type (30 year fixed, 20 year fixed, Adjustable rate mortgage (ARM), Interest only, etc), prepayment penalties and points that you must take into consideration when looking for a refinance loan. Getting refinance loan quotes from multiple lenders allows you to compare apples to apples and make the right decision.
