![]() |
![]() |
|
![]() |
![]() |
Top Rank of
Latest Update Of
All Rank Articles
|
||||||||||||||
![]() |
|||||||||||||||||
![]() |
|||||||||||||||||
Home Mortgage RefinancingHome Mortgage Refinance and Mortgage RefinancingHome mortgage refinancing is a popular means for homeowners to save money. Home mortgage refinancing is obtaining a new mortgage to pay off an existing mortgage. Homeowners are tempted to refinance every time mortgage rates drop. They may use home mortgage refinance to change their adjustable rate mortgage into a fixed rate mortgage. Generally, homeowners refinance to take advantage of low interest rates. Others use home mortgage refinance for cash through cash-out refinancing. Despite the purpose, home mortgage refinancing is a unique process for every homeowner. Before you try home mortgage refinance, you need to calculate the expenses and determine if you will really benefit from it. At one time, if the new loan's interest rate was not at least 2% lower than that of the old mortgage, refinancing wasn't a good idea. Our changing market, though, has made this standard completely invalid. You now have to consider the interest rate, settlement costs, points, closing costs and fees required for home mortgage refinancing. To determine some of the costs, you will have to contact lenders for their exact fees. Starting with the original lender may lead to incentives because they may want to keep your business. Also, find out if there is enough home equity to merit home mortgage refinance. With all the details in hand, sometimes you'll find that home mortgage refinance just isn't for you.
If you decide to pursue home mortgage refinancing, do so with caution. Always work with companies that are known and reputable. Make sure that they are federally insured as well. If you've never refinanced, talk to someone who has and ask them what to expect. They may even be able to recommend a good lender. should I refinance?Why should I refinance and when does it pay to do so? Refinancing can be worthwhile, but it does not make good financial sense for everyone. A general role of thumb is that refinancing becomes worth your while if the current interest rate on your mortgage is at least 2 percentage points higher than the prevailing market rate. There are several reasons to refinance your home:
It is better to refinance if you can get an interest rate at least two percentage points lower than what you are currently paying. However, every situation is different. Some lenders are offering reduced fees or no points. Asking yourself a few questions may help you determine if you can save money:
There are other considerations, too, such as how long you plan to stay in the house. Most sources say that it takes at least three years to realize fully the savings from a lower interest rate, given the costs of the refinancing. Itemize all the expenses of the refinance and estimate your new monthly payments. Answering these questions can help you to decide if you should refinance. Talk with mortgage lenders, real estate agents, attorneys, and other advisors about lending practices, mortgage instruments, and your own interests before you commit to any specific loan. |
|||||||||||||||||
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
Home
| Home Mortgage | Mortgage Refinancing | Mortgage Company | Mortgage Quote | Mortgage Rate | Mortgage Lead | Mortgage Broker | Florida Mortgage
Copyright © 2005 By Mortgage All Rights Reserved. |