Thursday, 29 November 2012 11:49
Are you thinking about refinancing your home? If so, there are a lot of items to consider when making this decision.
There are several reasons it may make sense for you to refinance your mortgage. In the current market, you may be able to refinance to a lower rate. Or maybe you’d like to have a lower monthly mortgage payment to free up some extra cash. You may also want to shorten the length of your loan term to pay off your home earlier. Consolidating debt by refinancing can make sense as well.
If you do choose to refinance, you’ll want to consider a few things.
• What are the new loan terms? What is the new rate? What would be the loan amount and how long is the repayment period? Compare these items with your current loan terms.
• What are the costs associated with refinancing? This may include origination fees, application fees, and a home appraisal fee.
• How long will you remain in the property?
Using a mortgage calculator
is a good place to start to help you determine if refinancing is right for you.
Although refinancing may seem like a good idea, it’s important to remember that it doesn’t make sense for everyone. For instance, you’ll want to consider the money you’ll save each month versus the amount it will cost to refinance. If you don’t stay in the property long enough to recoup the costs, it may not be the right choice to refinance.
Consider talking with a Mortgage Specialist about these items and more to make an informed decision about refinancing.