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When you're down and out and undeniably broke, there's nowhere else to turn to. You can humble yourself and ask for help from friends and family. You can take on a second, even a third, job. Or you can take stock of the properties you own and realize that they may just save your life. Mortgage Refinancing may be the last resort. The question is, is it the best? Could there be a better way?

Seeking debt relief?

Dealing with long term mortgage refinancing is no walk in the park. The prudent thing to do when you opt for mortgage refinancing is to compare costs of your current loan with the new mortgage over a given time. If the results show that the new loan gives a lower cost, then get mortgage refinancing. Most people overlook this precaution and jump eagerly into the bandwagon, only to later regret their hasty decision. Instead of getting some relief from their financial responsibilities, they find themselves sinking deeper into debt.

The Internet is your friend at this time of need. With all the mortgage refinancing websites available online, you can take a peek at your options without having to deal with pesky salespeople that are likely to talk you into making a bad decision in pursuit of the almighty dollar. If you are seeking debt relief through mortgage refinancing, use the online calculator available on all mortgage refinancing sites. The results will show how much you will be paying in a given period. You can compare results of the minimum loan period on the new loan to make refinancing profitable. If you see that the break-even period pays, then get mortgage refinancing.

Understanding mortgage refinancing calculators

The calculator will require you to enter your loan balance amount, the interest, and the number of months to pay the loan. The calculator will then segment the costs into three divisions: upfront cost (new and old loan), monthly payments of principal and interest on the new and old loan, and the lost interest on both loans. Calculation will also factor cost offsets like tax savings on interests and points and show the break-even period. The results may show savings of thousands of dollars on the new loan.

For the average person, the online mortgage refinancing calculator is a life-saving device. They can immediately see the monthly payments they will make for a period of time, and the money they can save. The information they get will greatly help them in arriving at a decision.

Lock or float?

Lending institutions make money out of loans by charging interests. Your payment will go to the interests for the first few years. When you get a mortgage, you will be given the option to lock in or float your interest rates. In street parlance, you have a chance to decide on a fixed rate. This is an advantage for you when interest rates go up. You are safely locked in your going rate. When interest rates go down, you still stay fixed in your locked rate, which is a disadvantage.

The same goes for those who prefer to float their interest rates. When interest rates go down for several months, they can save a lot of money ' but when these rates stay up and go higher, they have to shell out more than the usual amount. Either way there are advantages and disadvantages.

Do you really need mortgage refinancing assistance?

Your existing loan is drying up your resources and a second mortgage is tempting. Don't fall into the temptation. The interest rates in second mortgages are prohibitive and can even be thrice as high as the initial mortgage. Instead of the second mortgage, get refinancing. If you have a pressing reason to get refinancing, by all means, go ahead. But if it is only to indulge yourself in luxury, forget it. You must not trade your house for an expensive car. In the long run, as interest rates are escalating, you might lose that car and everything else.

Mortgage refinancing may or may not get you out of debt. It will all depend on you. If you are committed to stick to your budget and spend years paying off the loan, then you are a good candidate. Tread carefully when you are getting mortgage refinancing to pay off your debts. You never know what you'll step on.