Typically, homeowners start thinking about refinancing when there’s a sudden decline in interest rates or if there’s a change in their financial situation. Even though a sharp decline in interest rates could make refinancing appear like a no brainer, you should take into consideration all factors and not just one variable. Before making any decisions - ask yourself:
Expect to go through a mortgage application process like you experienced with the original loan you took out. You’re actually replacing a mortgage with the new loan when you refinance your home.
Refinancing can actually be a wise financial choice - allowing you to meet a variety of needs, such as:
Try using one of the available online calculator tools from Bankrate.com to help crunch the numbers in your refinancing decision:
Refinancing Rule-of -Thumb - If interest rates are 1/2% to 5/8% below your current interest rate, it may well be a good time to think about refinancing your loan. You can keep abreast of interest rate fluctuations and trends and compare rates on Bankrate.com’s website.
When considering refinancing your mortgage, it’s prudent to speak to a financial expert to assist you in weighing your options - making sure that a refinance fits into your overall financial goals.
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The Author: admin Website: http://www.newhomes.com About: Frank has 11 years of Internet marketing experience within the real estate industry. As Director of Internet Marketing at American Home Guides, Frank was responsible for the creation and implementation of all search engine marketing. He developed a network of over 400 web sites that brought in over 2.5 million visitors a month.
This entry was posted by admin, on Friday, March 16th, 2007 at 4:35 pm and is filed under Mortgage/Home Financing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Comment by Michael Stankard
THis is a great article about re-financing!
Great resource Victoria, thanks
Comment by seth.newton
There’s so many things to take into consideration when you’re looking into refinancing, thanks for spelling some of the options…. is there a place online that serves as a central repository for financial experts? I don’t want to get ripped off….
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