When Should You Consider a Mortgage Refinance?
As you no doubt already know we are having record low interest rates at this moment.
Chances are the amount of interest you would have to pay for a new home loan is less the amount of interest you are currently paying on your existing home.
So the question is would now be a good time to mortgage refinance your loan.
This depends on a number of factors, which we will discuss.
Will the refinance be cheaper than the fees that you must pay in order to have this done for you.
You must pay an accountant or other such entity a fee in order to set up the refinancing of your home and if there is not much of a difference between the percentage that you are currently paying and the present which you have to pay after the refinance then it may not be worth your time or trouble in order to get a refinance of your home.
When considering a mortgage refinance this calculation should be first on your mind.
Additionally, a mortgage refinance may not be in your best interest if you have to refinance into a variable interest rate loan.
Although the loan rate may fact be lower than the current rate that you are paying if you have a fixed rate loan at this time you do not have to worry about your payments increasing suddenly if the loan rate were to change.
With a variable rate loan rate can go up and down considerably and you will want to weigh this option carefully before deciding to refinance into this type of loan structure.
Chances are the amount of interest you would have to pay for a new home loan is less the amount of interest you are currently paying on your existing home.
So the question is would now be a good time to mortgage refinance your loan.
This depends on a number of factors, which we will discuss.
Will the refinance be cheaper than the fees that you must pay in order to have this done for you.
You must pay an accountant or other such entity a fee in order to set up the refinancing of your home and if there is not much of a difference between the percentage that you are currently paying and the present which you have to pay after the refinance then it may not be worth your time or trouble in order to get a refinance of your home.
When considering a mortgage refinance this calculation should be first on your mind.
Additionally, a mortgage refinance may not be in your best interest if you have to refinance into a variable interest rate loan.
Although the loan rate may fact be lower than the current rate that you are paying if you have a fixed rate loan at this time you do not have to worry about your payments increasing suddenly if the loan rate were to change.
With a variable rate loan rate can go up and down considerably and you will want to weigh this option carefully before deciding to refinance into this type of loan structure.
