Capitol Lending - Refinancing

Capitol Lending

Refinancing
Purposes Lower Rates: when the mortgage rates decline, borrowers can save on mortgage payments by refinancing. Cash out: borrow more than the amount currently owed in order to take out equity. Lower payments: If the borrower needs to lower the mortgage payments, borrower can either refinance when the interest rates decline or increase the term of the loan. Borrowers should make refinancing decisions carefully since the transaction is not costless.
Industry Outlook

ECON 101: Supply and Demand The recent appreciation in home pricing caused by the lack of supply of new homes. As the chart shows, whenever the supply of new homes drops, the price of new homes soars.

Recent appreciation of real estate prices is largely caused by the availability of low cost capital. While we expect the mortgage rates to rise over the next year, capital flows will remain strong.