Refinancing, is this a good option

Refinancing, is this a good option

During your lifetime there may be situations that come up that make you consider refinancing your Seattle home. There may be an emergency situation that you need to handle, a family vacation that you’ve always wanted or a series of renovations that your house desperately needs that make you think about refinancing. Whatever the reasons may be, you should know that sometimes refinancing is your best option, and sometimes it is not.

Is refinancing right for you?

Refinancing is a very long and complicated procedure. It can take up to a month to find out all the details about your application, although it can also go faster as well. It all depends on the financial institution in Seattle you are approaching and how fast their processing is.

You will have to look around for different quotes for refinancing. Banks will offer different interest rates and different financing structures so you are going to have to look through the various offers to find out which one would work for you.

In a lot of cases refinancing is not your best option. It depends on your original mortgage and how many fees you’ll have to pay. In some cases the high cost of paying the fees needed to refinance costs more than any profit you will make.

Personal loans

If you find that refinancing is not the best choice you should take a look at getting a personal loan. If you have a lot of equity built-up in your Seattle house already you’ll probably find that you are offered a very good interest rate on the personal loan based on your assets.

Credit cards

These must be used with caution because of the high interest rate attached to them. If you have a card with a grace period and a high credit limit, you might want to think about using your card if you know that you can pay most of it off by the time the grace period is over. If you manage to pay it all off within that timeframe you have essentially taken out a no interest loan.

Financing your Seattle home may very well be a good option for you, but it is really one of those things that need to be discussed with a loans officer because everyone’s situation is different.

This Seattle real estate blog is courtesy of Adrian Willanger at Coldwell Banker Danforth & Associates 206 909-7536 helping people buy and sale homes in the Greater Seattle area.

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