Should I Refinance my
Mortgage?
If you are trying to track for a new loan, the interest rate isn’t the
only thing you need to consider.
You need to have clairvoyance ability to know exactly the right time to
refinance your mortgage that’s why many experts say if you find a decent deal
that saves you a huge amount of money, don’t beat it by predicting
mortgage-rate moves because it is not worth trying. Keep in mind that interest rate isn’t the
only thing to consider when chasing for a new loan. Also refinancing isn’t free. There are bills for your lawyer’s fee, bank
fees and new appraisal and inspection.
Timing is a must when you’re asking yourself,
“Should I refinance my mortgage?” Refinancing comes with a new set of closing
costs, and sometimes the practical thing is to continue paying on your existing
loan. Other times, you might need cash for a major purchase, and retrieving
your home equity can make decent financial sense.
In the end, you need to decide what your goal is
before deciding on a solution. Learn more about finding the best time to
refinance your home.
Cash-out
refinances
Cash-out refinances normally used to pay down debt.
They have pros and cons.
Imagine that you use a cash-out refinance to pay off
credit card debt. On the pro side, you're lessening the interest rate on the
credit card debt. On the con side, you may pay thousands more in interest because
you're taking up to 30 years to pay off the balance you shifted from your
credit card to your mortgage.
But the major risk in this situation is in shifting
an unsecured debt into a secured debt. Miss your credit card payments, and you
get nasty calls from debt collectors and a lower credit score.
Failure mortgage payments, and you can lose your
home to foreclosure. Home equity debt that's added to the refinanced mortgage
always was secured debt.
Not Sure If You should refinance?
Use our mortgage refinance calculator to help you choose if you should
refinance your mortgage. Estimate the
amount of money a refinancing could save you by conforming the information of
your current home loan with new rates, terms, and other factors.
Related Links : http://www.moneycrashers.com/should-i-refinance-my-mortgage/
Related Links : http://www.bankrate.com/finance/financial-literacy/when-is-cash-out-refinancing-a-good-option--1.aspx
