Wednesday, 30 March 2011

Refinancing Loans

Answer: Obviously, the surgeon is the boy's mother!

Ah, another play-on-words riddle. Shame on me...

Here's a riddle for everyone to ponder, what does it mean to "refinance a loan"? What are you actually doing when you're refinancing a loan? Well in its most basic sense, it means to swap out your old loan with a more favorable loan.

Pretend you have a mortgage. So when you refinance the loan, you try to find the best mortgage rate on the market and take out a loan at that [presumably higher] rate. Then the money from this refinanced loan will directly pay off the old loan! It's a beautiful symmetry there, within the process of refinancing.

Now of course, the nitty gritty details. Math and math and lots of math is involved with calculating how best to refinance a loan. You want to look for companies/banks that offer "no closing costs refinance" or "no cost refinance" or "no fee refinance", you get the point. The main reason is because the institution that gave you your old loan will charge hefty fees for paying it off early. So if you really do have a homeowner loan or mortgage loan, especially if you have bad credit, make sure you have a no cost refinance!

And with that, I leave you with a very interesting article about Small-Business Lending. Happy refinancing!
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40 comments:

  1. Jay30 March 2011 at 02:27

    my skill in borrowing money has increased by +1. :)

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  2. JuX30 March 2011 at 03:15

    all this talk of refinancing is confusing me. lol

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  3. BlowingInTheWind30 March 2011 at 03:25

    @Jay.ca

    Yeh i just leveled up too xD

    Nice post!

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  4. Intraman30 March 2011 at 04:23

    that was pretty hard to follow :)

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  5. SomeRandomGuy30 March 2011 at 05:34

    Wish someone could explain to me how to make money out of the air without taking loans and without need to rob anyone as good as you explained what refinancing loans means.

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  6. Sphyrix30 March 2011 at 06:44

    thanks for sharing :)

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  7. CandleintheDark30 March 2011 at 07:26

    It actually doesn't need to be that complicated. It is simply a way to take advantage of the math incompetent culture we have in the US

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  8. Chuck30 March 2011 at 08:12

    That was thrilling stuff.

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  9. Dudemeister30 March 2011 at 08:30

    So where's the riddle? I am disappoint.

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  10. tissue rejection30 March 2011 at 08:31

    Lol, alright. Another riddle sometime soon?

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  11. DisposedCheese30 March 2011 at 09:18

    Got the last one wrong. AGAIN!

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  12. LoneIslander30 March 2011 at 09:20

    I find it funny that I read this in my accounting class as we are talking about loans.

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  13. David30 March 2011 at 09:24

    Thanks for the info, I never knew that.

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  14. Slamcakes30 March 2011 at 10:03

    But lots of people refinance and then lose their homes to foreclosure.

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  15. The Viking30 March 2011 at 10:51

    Thanks for the enlightenment!

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  16. Bassislv30 March 2011 at 12:07

    nice post, great info

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  17. consuela bananahammoc30 March 2011 at 12:18

    Level 12!

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  18. 12330 March 2011 at 12:47

    Not looking forward to having to pay a mortgage :(

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  19. J. Reaper30 March 2011 at 12:51

    My head hurts.

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  20. Kevings30 March 2011 at 12:52

    Actually i just did refinancing last week, thus i knew what the word ment ^^Good post though :D

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  21. D.30 March 2011 at 13:15

    This has always been my favourite topic during Economics class

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  22. allabout30 March 2011 at 13:21

    thanks for the info.

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  23. Justin testing30 March 2011 at 14:00

    Damn loans, how do they work!?

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  24. Found on the Internet Today30 March 2011 at 14:38

    I'm now officially puzzled :)

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  25. Hattiwatti30 March 2011 at 14:42

    Dunno

    ReplyDelete
  26. LunaSihne30 March 2011 at 15:04

    You always have really good stuff.

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  27. Justin30 March 2011 at 15:41

    lolwut

    ReplyDelete
  28. Jared Aguirre30 March 2011 at 15:44

    Riddles and quality information? Yes.

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  29. G30 March 2011 at 15:45

    Cool! your posts always get me thinking

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  30. Anonymous30 March 2011 at 17:01

    You're puzzling with ma'head!

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  31. schultzz30 March 2011 at 17:08

    you're like the real world riddler.

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  32. RedHeadRob30 March 2011 at 17:35

    I have to agree with schultzz lol. your certainly a brain wizard or something.

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  33. cool_cicler30 March 2011 at 18:20

    Good writing. Just discovered your blog. Will follow!

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  34. Ill30 March 2011 at 18:30

    glad this isn't a mess i have to deal with in my life yet lol

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  35. ed30 March 2011 at 19:21

    i like to pretend alot of things

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  36. Painkiller!30 March 2011 at 19:38

    Good post

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  37. The Emancipator30 March 2011 at 19:55

    Why thank you I'm still dealing with a student loan and the interest that comes with it.

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  38. Azurikai30 March 2011 at 20:51

    haha puzzling thoughts indeed.

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  39. THRASHER30 March 2011 at 21:09

    interesting

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  40. Stromatose30 March 2011 at 21:42

    ugh loans.... why couldn't i have been born into a rich family? but nooooo i get to pay for my own college.... anyways i like your blog(s) keep up the good work :)

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