Monday, September 14, 2009

Bank of America Mortgage Rates – Save Money by Refinancing

Bank of America mortgage rates have been near or below 5.1% for the entire month of September. You could save quite a bit of money by refinancing at a lower mortgage interest rate. Most American home owners could benefit greatly by refinancing under 5%. There are many bad credit borrowers that cannot get this low of an interest rate on their home mortgage but they could still benefit by refinancing. Even if you aren’t exactly excited about the refinance process, it would be smart to at least explore your options.

The refinance process can be time consuming and grueling but if it ends up saving you several hundred dollars a month it would be well worth it. You would be surprised how much money you can save over the course of your loan by putting forth some extra time and effort for a few weeks. If you can save $100 on your home loan each month that could add up to several thousand dollars over the lifetime of a loan.

One thing that is going to be very important during the refinance process is your home value and credit score. If both of these have been on the decline during the recession you are going to find it much harder to get a low home refinance rate

. If you have been good with your financial life over the last few years and both of these are on the rise you are going to be one of the few Americans who will get to refinance under 5%.

The value of your home has a lot to do with those homes surrounding yours. If there has been a foreclosure or short sale in your neighborhood or surrounding area you could find that your home value has declined much more than you expected. Obviously there is nothing you can do about this but it is just the way it is in the current housing market. You might want to do this research before you go through the entire refinance process and find out that your home value is 20% less than what you expected it to be.

There are many great resources to fix your credit score but the best thing you can do is pay off debt. If you have extra money sitting around, the best thing you can do is pay off debt. Even if you KNOW you are going to make money on other investment vehicles you could greatly help your credit score by getting rid of some debt. Now is a great time to refinance so get out there and see how low of a refinance mortgage rate

you can get.

Author: Mike Garner


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