but if you can obtain a lower interest rate, you might reduce your monthly payments. Some homeowners refinance to obtain a different type of loan. For example, they might replace a variable rate mortgage with a fixed-rate mortgage or replace a 30-year mortgage with one that has a 15-year amortization schedule. Unfortunately, if you’re facing foreclosure and have missed or made late payments, you might have difficulty qualifying for a new loan.
Here are some good resources on refinancing your mortgage:
• A Consumer’s Guide to Mortgage Refinancings, available on YouTube as well as in text versions online, provides information on refinancing, including worksheets and a glossary of industry terms. • Visit bankrate.com and search for “How to Know When to Refinance Your Mortgage” to look at current interest rates available in your state and an online payment calculator. • The bankrate.com site also has a section called “7 Home Refinance Options for People with Bad Credit.” • For more information regarding types of mortgages and the settlement process, download the booklet Buying Your Home: Settlement Costs and Helpful Information at hud.gov. • Veterans with a VA mortgage can check VA.gov online for eligibility to refinance using Interest Rate Reduction Refinancing Loans (IRRRL).
REVERSE MORTGAGE
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