Does Refinancing Your Home Makes Sense? 3 Questions That will Help U

With the drop in the interest rate many of my past clients will touch base with me to ask either what the current value of their home is or if it is worth for them to refinance. I am not a lender or a financial adviser so seek professional help. I am a home owner and the way I look into making this decision whether to refinance or not is below:

1. How many years I do plan to stay in the home-  If for more than 5 years reconsider refinancing your home may make sense.

2. Cost Associate to Refinancing versus savings- Remember there is no such as zero cost refinance. Speak to your lender to under where the hidden cost of refinancing is. If you are investing in refinancing learn how long it will take you to break even the saving compared to expenses to refinance your home.

3. Goals to Refinance- This is far more important than the above reasons. Many home owners refinance either to cash out, consolidate debts, drop PMI, ARM to fix mortgage etc. What ever your reasons or goals are compare your current monthly payments and lifestyle to what you are targeting yourself for.

Little Extra - Use online calculator to help you figure how much you will safe if you refinance over keeping current mortgage scenario. If you are still confused meet with a local lender who can schedule a face to face meeting to help you understand your choices.

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