Getting Profit Through Refinancing

by Nasrul Hanis

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One of the profitable ways to manage your property is through refinancing.

Refinancing is a method to take the remaining loan balance and let it being recalculated at a lower rate so the monthly payment lower than usual. Loans that can be refinanced could be ones for your home and real estate. Many people especially investors and landowners have adjustable rates and go for refinance to get a lower amount which will help them to save extra money for each month.

Refinancing allows the borrower to put more of someone’s monthly payment into his/her principal of the loan by allowing his/her to settle loan faster than usual. When the interest rate becomes low, it helps credit score to increase due to being able to pay on time. It also can either lower your payment or to reduce the time on your loan. In addition it is also a way to consolidate several loans into one and refinance to one low rate which is very beneficial for you.

Refinancing means paying off an existing loan and replacing it with a new one. In fact there are many common reasons why homeowners do refinance and one of them is having the chance to shorten the term of their mortgage. Refinancing can cost between 3% and 6% of the loan’s principal and requires appraisal, title search and application fees thus it’s very important for an owner to determine whether the reason for refinancing offers the real and reasonable profit.

One more important thing that you have to know is refinancing is a complicated process. Consider your financial situation and the disadvantages before going for it. Although it seems so profitable, refinancing can be a deadly slope to never-ending debt! It’s important to keep this in mind when considering refinancing in your strategy. Again, look at your financial situation and the current market situation.

The biggest disadvantage of refinancing is you have to consider all the various fees associated with the process. You will be charged fees at every turn. Refinancing might involve certain procedural costs including processing, document preparation, administration, application, valuation, inspection, appraisal, credit report, arrangement and etc.

Refinancing can be a great financial move if it reduces your payment and shortens the term of your loan. It can also be a valuable tool in getting your debt under control. However before you go for refinancing don’t ever forget to consider your financial situation or you might have to face trouble instead of getting profit in the future.

{ 22 comments… read them below or add one }

used cars red deer July 26, 2010 at 6:51 am

well, refinancing is more of a burden than comfort for me….

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Austin Mortgage July 27, 2010 at 4:16 am

Refinancing can be good, but we’ve been dealing with a lot of people who want to refi at a fixed rate..which given that rates are ridiculously low right now, that’s what I would recommend. Of course, every situation is unique.

Now that purchase loans are down, we’re starting to see refi apps shoot back up.

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High Class Service Apartments July 28, 2010 at 6:25 pm

Thanks for the informative post about getting profit through refinancing. Surely it will help to reduce the debt burden.

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Telemarketing July 29, 2010 at 5:07 pm

Refinancing is not just a piece of cake kind of marketing. This business really needs a reliable financing back up. So glad to read about this post, thanks for some tips and advices.

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Edmonton apartments July 31, 2010 at 4:32 pm

Refinancing is kind of a trap to businessmen who doesn’t know the do’s and dont’s in marketing. Once you ventured in this kind of financial technique, make sure that you are prepared and you know how to handle future problems. Thanks for the informative post.

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Ryan August 6, 2010 at 3:13 pm

The biggest disadvantage of refinancing is you have to consider all the various fees associated with the process. You will be charged fees at every turn. Refinancing is a very complicated process.

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Roch August 16, 2010 at 11:18 pm

I admit old marketing tricks. Can get things sold quicker. We see many vtb here in Canada.

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Chris @ Jacksonville Homes August 17, 2010 at 6:03 pm

As we have a tight economy many home owners are need of financing for their property.Your posting will help to achieve profits and gives a clear idea about refinancing. Thanks

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Private Placement Memorandum August 21, 2010 at 6:59 am

Refinancing can present a great opportunity with interest rates at record lows. Great time to check on breakeven dates, etc.

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Henderson homes August 24, 2010 at 5:24 am

I will be refinancing in a couple months, thanks for the post..

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Marysville Homes September 1, 2010 at 1:44 am

While interest rates are great, refinancing can be a challenge to many now because home prices dropped considerably and most people don’t have enough equity. However, there are some options out there, especially if the home is owner occupied.

I personally just finished refinance process on my home via HARP (Home Affordable Refinance Program). I was amazed how easy it was. No appraisal, no income verification. Just credit check. (Like good old times 🙂 )

People definitely should look into it to see if they qualify.

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Derbyshire Builder September 1, 2010 at 11:13 pm

Many people took the refinancing route in the UK but also released equity in the process, they now find themselves in negative equity, not a good place to be

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NY Daily Quote September 6, 2010 at 9:14 am

Interesting article. Do you think this is a particularly good time to refinance, considering how low the interest rates are?

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Trust Deeds September 7, 2010 at 10:41 pm

Only if you have the liquid assets, otherwise, refinancing may send you under. Interest rates may drop further, but what’s the use of a 0.something percent? Nothing….

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Edmonton rentals September 8, 2010 at 4:34 pm

Refinancing is somewhat a bit dangerous method if you are new and don’t know how handle this technique. Thanks for sharing the post though, it gave me an idea and background regarding this technique. It’s not that easy but if you’re willing to take risks and consequences just to save your business why not use this technique. That is if your brave enough to handle it.

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Edmonton rentals September 13, 2010 at 4:26 pm

Refinancing is a bit complicated if you have no idea and background about it. It could endanger your business if you cant handle this technique properly. Thanks for the tips.

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lassy September 14, 2010 at 11:19 am

nice idea..what particular firms offer the same principle? it is a bit risky to loan with collaterals i really need help from other people.

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Edmonton rental listings July 20, 2011 at 4:00 am

Interesting read on Refinancing. I think its still better to focus on other areas of your business or personal finance, but I can see how this could be beneficial.

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Las Vegas condos August 10, 2011 at 7:52 am

I still need to refinance, looking for a bank to offer best rate,

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Dream Living January 23, 2012 at 7:45 pm

thanks for sharing in your informations

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vijayamcy Service apartments August 10, 2017 at 7:00 pm

Thanks For your information regarding Regarding”Getting Profit Through Refinancing”. very Informative content,expecting more stuffs from you.

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Buy CA books August 18, 2017 at 1:21 pm

Excellent idea ! keep sharing your knowledge

Well done !!

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