Refinancing Your Mortgage
By make money
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
About The Author: Meleik Norman represents Mortgagewayz.com
where we have Great rates on new home mortgages, refinancing,
home equity loans, debt consolodation loans, and more for all
credit situations. If you wanna learn more just visit my
website at http://www.meleiksmall.mortgagewayz.com
Ray Burton is a personal training business owner, online writer and growing net entrepreneur. He is also the author of the controversial workout e-book, The Fat 2 Fit Program which is also part of his passive income sources along with the membership site FitterFast.com.
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Filed in Passive Income Business, Real Estate Money |
