If there is even the possibility that you might sell in the near future, please do not refinance your current mortgage on your home or you may not be able to buy another one. When you refinance, you are telling the lender that this is your primary residence which is part of the reason that they are willing to do the refinance, especially one of the HARP loans that may not require an appraisal or closing costs. If you refinance and then sell the property within a short period of time, say less than a year, then you go to get a new loan for your next purchase, the lender finds the refinance on your credit and will in all likelihood it will cause you an issue and perhaps even a loan denial.
I really hadn't thought of this myself, duh, even being in the business for well over 10 years, I guess I often wondered why someone would pay closing costs and refi just to get maybe a quarter point lower rate and then decide to sell, but never really understood the impact it could have on a buyer trying to get a new loan for purchase in a short period of time. Had this come up recently and my lender gave me the story.
Something to keep in mind. Also, when considering a refi, consider the amount of closing costs and the amount of time that it will take you to recoup that cost versus the savings on the rate. Often lenders will tell you that's not advisable unless you are getting at least 1 point better on your rate. Discuss it with a trusted lender before you proceed and be sure that you don't plan a move from that property anytime in the foreseeable future, i.e., 2-3 years.
HAVE A GREAT YEAR!
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