Refinancing Your Mortgage

Refinancing Your Mortgage 101
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

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