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Refinancing: When Is It Worth It?
By: Teve Torbes
When is it worth it to refinance your house? This guide will take you through a
couple of the points you’ll need to know about when you’re trying to decide
whether to refinance your mortgage or not.
Generally, you need to be aware of what the interest rate you’re paying on your
mortage is. When interest rates start to go down, you have to be ready to jump
on it and take advantage of a lower rate. It generally costs a couple of
thousand dollars to refinance, though, so you need to think about several
factors before deciding whether or not to do it.
First, how much are you paying now? You need to know both your monthly savings
and the amount of time you expect to be there. Only refinance if you’re sure
that you will be staying in that house for awhile - moving and selling your
house would wipe out all the benefit of refinancing. You also need to think
about whether interest rates will go lower in the future. You don’t want to jump
on a refinancing and then suddenly find out a few months later that interest
rates have dropped a point. Even a small change in interest rates can produce a
large gain over the life of your loan, so you want to make sure you’re
refinancing at the low point. Talk to your bank loan officer - they’ll generally
tell you whether they think it’s a good idea and what direction they think
interest rates will be going. Ask them to show you specific calculations, and
then check them yourself. They'll easily be willing to do this, after all, they
need you to be able to make a sale. Mortgages are their business, but yours is
making sure you get a good deal.
About the Author:
Teve Torbes has a cool web site at http://www.forkliftsguide.com/ along with one
at http://www.forkliftsguide.com/forklift-safety.htm and another at http://www.forkliftsguide.com/nissan-forklifts.htm |
