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A $200,000 loan over 30 years at 8.25percentt would require monthly payments of $1,502.66, while refinancing to pay back the same amount over the same term at 6.5percentt would result in payments of $1,264.32, a savings of $238.34 a month.
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She refinanced to pay off some credit cards and settle into a 30-year, fixed-rate loan.
The most compelling reason to refinance is to pay less in interest.
They relied on revolving accounts: refinancing the house to pay the credit-card bill, using the credit card to pay the electricity bill before the power went out.
Consider refinancing your mortgage to pay for home improvements.
Another option is refinancing to a fixed-rate loan while rates are at historic lows.
They refinanced their loans to pay for vacations, operations, tuition or, frequently, investments in more houses.
(Ms. Shock refinanced her home to pay for her week-and-a-half-long stay at a residential treatment center).
As a result, the church cannot refinance its mortgage to pay for much-needed neighborhood programs like a food pantry and soup kitchen.
Meanwhile, he has been cashing in some stocks and refinanced his home to pay bills.
Those who refinanced in the last year or two don't have to consider amortization tables, but they do need to know their equity position — and when the refinancing would begin to pay off.
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