Analyze Your Savings
Check the market closely to determine the available rates and the costs associated with
refinancing. These costs can include items such as an appraisal and other various fees and
points. Then determine what your new payment would be if you refinanced. You can estimate
how long it will take to recover the costs of refinancing by dividing your closing costs
by the difference between your new and old payments (your monthly savings). However, the
ultimate amount you may save depends on many factors, including your total refinancing
costs, whether you sell your home in the near future, and the effects of refinancing on
your taxes. The old rule of thumb used to be that you shouldn't refinance unless the new
interest rate is at least two percentage points lower. However, many
companies are now offering zero point loans and low-cost refinancing. Therefore, even if
your rate change is less than one percentage point, you may be able to save some money by
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 |
