What Is a Rapid Refinance?

Save
Rapid Refinance
Rapid Refinance (Image: "What subprime crisis? Affordable houses are everywhere." is Copyrighted by Flickr user: woodleywonderworks (woodley wonderworks) under the Creative Commons Attribution license.)

Refinancing is a money-saving option that appeals to many individuals. Rapid refinancing can be even more effective and appealing because of the fast turnaround time. However, it is important to consider all aspects of a process before deciding whether or not it is right for you. Businesses and individuals alike must make this choice.

Function

A rapid refinance is designed to allow individuals to refinance their properties or assets within a very short time frame. The most common form of refinancing is property or home refinancing. Rapid financing is done so that individuals can avoid bankruptcy, purchase additional assets and quickly lower their existing payments. A rapid refinance is also useful when interest rates are volatile. The rapid refinancing process allows mortgage holders to quickly lock in a certain interest rate.

Features

There are many features that signify a rapid refinancing transaction. Usually a rapid refinance can be completed in under ten days. Many banks offer rapid refinancing, but let the bank know that time is an issue. When a rapid refinance is completed all processes are completed as quickly as possible. However, refinancing (even a rapid refinance) takes longer when many property owners are refinancing at one time than if there are few property owners.

Types

There are two main types of rapid refinance: individual and corporate. Most refinancing is done on an individual basis; home owners want lower payments, to receive their home equity, or to receive a better interest rate on their homes. However, rapid refinancing can also be completed in corporate settings. From 2002 to 2006, the United States government provided a rapid refinance program to rural broadband companies suffering economic hardships. The program was designed to enable broadband connections to be accessed all over the country.

Benefits

The ability to quickly refinance a home or other asset can be invaluable. With a refinance it is possible to save money that would otherwise have been spent on higher interest rates or variable mortgage rates associated with property loans. When a household or business has lost considerable income it can also be beneficial to refinance a property to obtain the equity for other uses. Rapid refinancing also enables individuals to receive their refinancing benefits much faster.

Considerations

Rapid refinancing is not for everyone or for every situation. Consider the benefits and cost of the refinance. In some cases a refinance can actually hurt the property owner and cost more in the long run. Someone who does not plan to own a property until the mortgage is paid off should stay away from refinancing. In some cases the fees associated with the refinance can also cost more than the benefits the refinancing provides.

Related Searches

References

Promoted By Zergnet

Comments

You May Also Like

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!