Michigan Mortgage Blog -Atlantis Mortgage
Your TRUE No Closing Cost Lender
Is It A Good Idea to Refinance Your Mortgage?
It's a rare case that, when buying the house, a mortgage loan isn't necessary. In other words, very few people have tens or hundreds of thousands of dollar available to just drop down so that they can buy a home of their own.
Mortgage loans come in all varieties. Adjustable rate mortgages, fixed rate mortgages, loans that are repaid over 10 years, 15 years or even 30 years, mortgages with no down payment on the home or no closing cost mortgages are all loans that you'll hear about when you're looking into buying a home.
But when you take out a mortgage, there's one other thing that you will need to consider: is there ever a right time to refinance your mortgage?
When you refinance your mortgage, you have the opportunity to take out a new loan to pay off your current mortgage. Sometimes, it's a great idea to refinance, other times is isn't.
If you have an adjustable rate mortgage and interest rates are climbing, it may be a great idea to refinance at a low fixed interest rate. If you have a long term mortgage, want to avoid early repayment penalties and have more disposable income than you had thought that your would, it can be good to refinance for a shorter term loan.
Similarly, it may be wise to refinance if other situations change: you'll be staying in your home longer, or you wish to make upgrades to your home and want to tap into your equity.
It is important, however, that you speak with a loan counselor prior to making the decision to refinance. It's important to know all of your options, the risks and the benefits as well as the advantages and disadvantages that may exist when you refinance.
Is that to say it's not a good idea to refinance your mortgage? Not at all: it's just to say that, just as you did your research to get a mortgage, it's important to know all of your options before you refinance.
www.atlantismortgage.com
Jonathan Saffiedine
866-357-9100
;)
;)
