Refinance a Mortgage? If the King of Pop Can Do It, So Can You

By Richard Barrington
LoanPage.com Columnist

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It was reported recently that Michael Jackson, the artist formerly known as "the King of Pop," was looking to refinance the mortgage on his infamous Neverland Valley Ranch. It just goes to show--if someone who has sold tens of millions of records can have trouble making his mortgage payments, the average American shouldn't feel so bad.

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Michael Jackson's situation is a reminder that you can look to refinance as a way to regain control over your mortgage situation. Corporations do this kind of thing all the time--they call it restructuring debt. For individuals, it is important to remember that mortgage companies would rather see you refinance than default, so you should not hesitate to work with them on options to make your debt more manageable.

Reasons to Refinance

If you are having trouble with your mortgage payments, there are at least three reasons to you should look at ways to refinance:

» You may be able to lower your interest rate, since mortgage rates have been trending downward lately.
» You may be able to spread your remaining mortgage balance over a longer period of time.
» You may want to take some uncertainty out of your budgeting by switching from an adjustable rate to a fixed rate mortgage.

Comparing Mortgage Companies

Looking at different ways to refinance has never been easier, because of the availability of Internet information on different mortgage companies. Mortgage calculators can help you compare how the rates offered by different mortgage companies will translate into monthly payments, but also look at features besides interest rates. Sometimes, making a mortgage affordable is as much a question of structure as it is of the interest rate, so you'll want to see what other options different mortgage companies have to offer.

Source
The Washington Times

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.

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