Interest rates fluctuate as changes occur in the general economy. If you purchased your home when interest rates were higher, you may want to consider re-financing your loan at a lower rate.
You will have to apply for the new mortgage and have your current income eligibility assessed. Depending on how long you have had your present loan, a current appraisal may be required. There are closing costs, such as attorney, title fees, recording and notary fees, and appraisal charges.
The biggest factor in your decision should be the length of time you plan to remain in your home. If you will be there for only a year or two, it may not pay to re-finance. If you will be in your home longer, re-financing could provide you with lower mortgage payments. Your Realtor can help you work out the numbers and can refer you to reputable lenders.
CMG Home Loans - Toms River, NJ
Dallas, Great points. The most important piece in a refi would be the monthly savings VS the cost to gain the savings. You can not look at just the rate savings, because a smaller loan requires a much larger difference in rate to make sense than a larger loan.
Rates are still near 40 year lows right now, and will not be here forever!
May 06, 2010 04:01 AM
Rainmaker
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