Refinancing, a simple word and a sometimes complicated process. If you are considering refinancing in Arizona the following tips can help you be prepared for the process. Refinancing in Arizona to lower your monthly payments can be a great idea, but it is imperative that you know exactly what you are signing up for before you sign the new papers.
Variable or fixed. Make sure you know if you are getting a fixed or a variable rate mortgage. With a fixed mortgage your payments will remain the same for the length of your mortgage (with the exception of a rise or dip in property taxes). A variable rate mortgage typically starts with low monthly payments that adjust over a period of time. With a variable rate mortgage the payments can go up dramatically after a period of time.
Is it a good idea to refinance? Sources say that refinancing in Arizona makes sense if you can reduce your current mortgage by 2 points or more. Analyze whether the cost of refinancing is worth it by figuring out how long it will take you to cover the refinancing cost and whether you plan on being in your home that long. If your new mortgage will save you $200 a month in mortgage payments but it costs $2,000 to complete your refi then it will be 10 months before you recoup the cost.
Length of your mortgage. Shorter loans have lower interest rates but higher monthly payments. Mortgages are usually 15 years or 30 years in length. Make sure that your new loan doesn't have penalties associated with an early pay-off if your plan is to pay your home loan off early.
Refinancing in Arizona can be a wise financial decision especially with mortgage rates at a 30 year low. Weigh all of the details and make sure that your new mortgage is exactly what you are looking for before signing on the dotted line.
Gina McKinley, an Arizona real estate agent, can help you with learning the in's and out's of Arizona mortgage refinance. Gina McKinley can be reached at (480) 355-8645 or by email.
Click here for more information about refinancing from Yahoo Real Estate.
;)
;)
