Refinancing Your Home                          

With interest rates so low, homeowners are asking themselves, “Should I Refinance?” For many, refinancing your home will save you money, lower your payments, and/or save on interest costs.

If current interest rates are lower than the interest rate on your mortgage, it may make sense to refinance. You will need to factor in the closing costs to see whether it is worthwhile to refinance.

Through refinancing you can also reduce the term of your loan, potentially saving money over the long run. If you have a 30-year loan, you can switch to a 15-year loan. Interest rates are usually a little lower for a 15-year loan. Your monthly payment will increase, but you have chopped the loan payment period in half, saving substantial interest costs.

If you have substantially credit card debt, consolidating the debt into your home mortgage will also save you money. Interest on mortgage debt is much lower than interest on credit card debt. However, if you refinance, consolidate your debt, then go out and ring up more credit card debt, you have not done yourself any favors.

Refinancing your home can also save you money if you go from an adjustable-rate mortgage to a fixed-rate mortgage. You will be able to lock in a low rate over the life of the loan.

There are times when the answer to “Should I Refinance?” is no. If the value of your house has gone down since you purchased it, you may not be able to refinance. If your income has decreased, you may be turned down for a refinance loan. If your credit score is low or you have been late on mortgage payments in the last twelve months, you will probably find it difficult to refinance.



Mortgage Refinance References & Resources

Federal Reserve: A Consumer's Guide to Mortgage Refinancing

Smart Money: Should You Refinance?

Investopedia: Home-Equity Loans - What You Need To Know

Refinancing Calculator

Mortgage Refinance Tips & Guides

Mortgage Secrets Exposed

Learn How To Smash Your Mortgage

Do It Yourself Mortgage Modification

Pre-Foreclosure Acquisition Services

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