| | Practically everyone has refinanced or thought about it at one point in
time. We've seen the dozens of commercials that urge us to do it. With
rates at record lows over the past few years, refinancing has helped
many borrowers lower their monthly payments.
Refinancing your mortgage can be a very hard and confusing experience.
When you're making your decision, there are several things to keep in
mind.
First, even a small rate cut can pay off quickly.
Second, if you are planning to stay in your home for at least three to
five years, it may make sense to pay "points" (a point equals 1% of the
loan amount) and closing costs to get the lowest available rate.
And third, you can avoid a cash layout and still get a low rate by
adding the fees and closing costs to your new mortgage. This does not
mean shouldering a lot of extra debt. If you've had your current
mortgage for at least three years, you've probably reduced your balance
by several thousand dollars. So you may be able to tack your closing
costs onto your new loan, lock in at a lower rate and still end up with
a mortgage amount that's less than your original one. More importantly,
a lower monthly payment.
Another factor to consider is how long you expect to stay in your home?
If your planning to move in the next few years, the monthly savings may
never add up to the costs that are involved in refinancing.
You may have bought your home with a finance company mortgage, or took
out a second mortgage to pay for central heating or furniture. Your
payments are probably very high because some finance companies charge
interest rates of up to 50 per cent. It is advisable that you look
carefully at the small print to find the true rate—most mortgage
refinancing loans are over a fairly short term, about 15 years at most.
HOMEOWNERS Please get the very BEST financing rates available today
Meleik Norman represents Mortgagewayz.com where we have Great rates on
new home mortgages, refinancing, home equity loans, debt consolodation
loans, and more for all credit situations. If you wanna learn more just
visit my website at www.meleiksmall.mortgagewayz.com |
| | Posted 10/4/2006 1:55 AM - 4 Views - 2 eProps - 1 Comment
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