Housing costs are one of the largest components of most household budgets. With interest rates changing so frequently, you should periodically determine whether refinancing at current interest rates would save you money.
To determine whether you should refinance, you should know what to expect and consider what the costs of obtaining a new mortgage will be compared to the savings you will enjoy with a reduced interest rate.
Refinancing: What's In It For You?
You own your house. You're settled in and comfy. Still, with mortgage rate changes, you wonder if it's time to refinance.
Your answers to the following questions will help you determine if refinancing your home is the best decision for you. Ask yourself:
- Why do I want to refinance?
- To lower my monthly payment?
- To payoff my current mortgage faster?
- To eliminate private mortgage insurance?
- Make home improvements?
- Payoff consumer debt?
- How long do I plan to own this property?
- Can I reduce the equity in my home by rolling closing cost into the new mortgage?
This type of loan is great for projects when you know exactly how much money you need. You will receive funds in one lump sum, and enjoy the comfort of knowing your rate will remain the same.