SO, YOU'RE REFINANCING?

REFINANCING IS YOUR DECISION


When you have invested in your home for a long time, refinancing your home can become a very stressful decision. There are times when it becomes necessary to refinance your home and it is then that you want to make sure you are getting the best deal possible. There are many resources that the homeowner has at his disposal to help him make this life altering decision.

Some will apply for refinancing of the mortgage on line. The internet provides some anonymity. You can question the lenders and mortgage brokers without letting them know your identity. Researching on line allows you to be able to contact as many individuals as possible without the worry of them discovering who you are.

Today, almost everyone has refinanced or thought about it at one point or another. There are plenty of ads that urge you to refinance with no hassles. The rates have plummeted to record lows over the past few years, and refinancing has helped many borrowers lower their monthly payments. There are many factors involved in refinancing your home which could make it difficult if not confusing to complete this process. You must be armed with knowledge about refinancing in today’s information market in order to avoid being caught up in the web of deception. Even a small rate cut can pay off quickly.

You should also be aware that you can avoid a cash layout and still get a low rate by adding fees and closing costs to your new mortgage. That does not necessarily mean that you will carry a lot of debt. If you have had your mortgage for three or more years, you’ve probably reduced your balance by several thousand dollars. You, maybe able to lock in a lower interest rate, tack on the closing costs to your new loan and still end up with a mortgage amount less the original one. Therefore, you can end up with a lower monthly payment.

There is another factor we must consider and that is whether you are planning on staying in the home, or moving out within the next few years. If you choose the latter, the monthly savings may never add up to the costs involved in refinancing. Also, watch out when financing with finance companies, some finance companies charge interest rates up to 50%. Therefore, you should look carefully at the contract before you sign on the dotted line.

Remember, you should always do research, begin with the internet and continue with the mortgage brokers and other lenders; the choice as always is up to you.

Happy Surfing,