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Why Refinance?
There are many reasons for refinancing, including:
1. Lowering your interest rate
2. Changing the number of years you will pay on your mortgage – for example, taking a 15 year mortgage instead of a 30 year mortgage
3. Consolidating debt by taking a larger mortgage and using the excess cash to pay off higher interest debt
4. Taking out equity to remodel
How Much House Can I Afford?
As a general rule, you can buy a home with a value two to three times your annual income.
When Should I Refinance?
If the rate in the market is at least one point lower than your current interest rate, refinancing usually makes sense. In addition, you should consider refinancing if you can get a lower interest rate with little to no costs to you, including closing costs. Always remember, if you have had a 30 year mortgage loan for several years, when you refinance you will typically get a 30 year mortgage – that means it will take 30 years to pay off the new loan, extending your payoff period.
How Can I Lower or Eliminate Closing Costs?
You can reduce the “points” you pay on a mortgage by taking a slightly higher interest rate (a “point” is equivalent to 1% of the mortgage amount). In addition, many lenders re offering “no closing cost” loans, because of the extremely competitive mortgage environment. You should question all closing costs, and ask lenders to reduce or eliminate as many as possible. Also, if cash is an issue, you can often roll the closing costs into the mortgage amount – you will still pay them over the life of the loan, but a lower interest rate may more than make up for it!
Will My Credit Affect My Mortgage Interest Rate?
The answer is yes it can. If you have poor or damaged credit, you will most likely have to pay a higher interest rate. You should know your credit history and score, and check to see if there is anything unusual or wrong on your credit report. You should also try to clear up any mistakes as early as possible.
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| Refinance Mortgage Resources |
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For Available Refinance Mortgage Sites - Check Out These Links
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