Deciding To Refinance
Traditionally, the decision on whether or not to refinance has meant balancing the savings
of a lower monthly payment against the costs of refinancing. But in recent years,
companies have introduced "no cost" and low-cost refinancing packages that
minimize or completely eliminate the out-of-pocket expenses of refinancing. (These
refinancing packages compensate with a higher interest rate, or by including some of the
costs in the amount that is financed.)
With traditional refinancing, the most often cited rule-of-thumb is that the interest rate
for your new mortgage must be about 2 percentage points below the rate of your current
mortgage for refinancing to make sense. However, with the newer low- and no-cost
refinancing programs, it can be worth your while to refinance to
obtain a smaller reduction in interest rates.
How long you expect to stay in your home is also a factor to consider. If you'll be moving
in a few years, the month-to-month savings may never add up to the costs that are involved
in a refinancing. |
REFINANCE
Refinance Considerations
Refinance Once, Then Do It Again
Build Home Equity Faster
Get Your Hands on Some Cash
Trade your ARM for Fixed Rates
Mortgage Refinance Costs
Analyze Your Savings
Paying Points For A Lower Rate
Your Personal Income Taxes
Consider Other Mortgage Programs
Deciding To Refinance
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