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The process of paying off an existing mortgage with a new loan secured by the same property is called refinancing. This is true for refinancing a home in any area in Ohio.

Borrowers can often benefit financially from refinancing their homes in the Ohio area. And there are two basic types of refinance mortgages that those living in Ohio can choose from:

• An Ohio Reduction Refinance. This refinance mortgage process is made solely for the purpose of reducing the mortgage. With this transaction the new mortgage loan is increased to include, or what they call a “roll in,” the fees/closing costs associated with the new loan. With an Ohio Reduction Refinance, if you use Fannie Mae, you might be allowed to obtain a small amount of money from the transaction without it being considered a “cash-out″ refinance. With an Ohio reduction refinance Fannie Mae will allow up to 2% of the loan balance, or $2,000, whichever is less, as the maximum cash-out.

• An Ohio cash-out refinance. This Ohio refinance mortgage transaction is made specifically to obtain money. In this transaction the new mortgage balance is increased to take care of the closing costs, pay off the existing mortgage balance, and provide the person borrowing with the money they are requesting. The person who receives the cash in the Ohio cash-out refinancing can use the money for paying off credit card debts, paying tax liens, or for any thing else they would like.

If you live in Ohio and are considering doing an Ohio mortgage refinance on your mortgage then the single most important thing you must evaluate is the new value of the property. The estimated value of the new property must be correctly evaluated against the balance of any existing liens (including the balance of the current mortgage).

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With the current economy families across the country are making the tough choice of continuing to make payments on their homes or save what little they have left to start over. The latter deteriorates your credit and will expose you to a possible foreclosure. So the burning question when faced with this dilemma is “Should I stay or should I go” or should I refi my home?

The facts are that many people took cash out, borrowed more than they can afford, took teaser rates, or applied using some form of a stated income loan which would often over inflate the borrowers actual income through the home refinance or home purchase process. The economy may not have hit the bottom and a result is found with thousands of families unable to refinance or sell their homes. There are a lot of people that are leaving their homes and just giving the properties to lenders. Is this the right decision?

I don’t have the right or wrong answer here but I do know that up until the 90’s most people bought a house as a place to live and somewhere to stay and raise a family.That might be a Walton’s way of thought but sometimes the truth hurts.With national home values increasing faster than expected in the 1990’s to 7% a year; it started a trend.  Lending practices began to recover from the S/L crisis and a new way of thinking was born in the lending world. Are you still breathing?When was the last time you reviewed your credit report? Obviously you can afford a house.With that in mind you might be able to say stated income and teaser loans were common, due to a housing prices from the mid 90’s.Then the temptation comes in to play with values skyrocketing and homeowners using that money to buy expensive items. Most of us took money from our homes to purchase the things we could not normally afford, and this began a cycle of refinancing for the new toy everyone wanted that year.

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