Wednesday, February 29, 2012

When to Refinance a Mortgage | Rai Chertkoff Real Estate Guides

Mortgage Refinance

Most people know just enough about refinancing to be cautious. Here is some information that can help the process along. Going through with refinancing without knowing the basics can lead to disaster. Don?t make a huge mistake by rushing into refinancing without knowing what you are doing or how you will benefit.

There are many homeowners who are thinking of refinancing in order to help reduce their monthly cost of their current mortgage loan. Throughout this article we will go over how and when to refinance. These recent days have brought interests rates to about 6%. Those homeowners who purchased their homes when rates were higher can benefit a great deal from the lower interest rates if they were to refinance.

When to Refinance

Refinancing worked a bit differently in the past. It was said that one should wait to refinance their mortgage until they can lower their rate by at least 2%.

However in today?s world it is recommended to refinance whenever the rates drop lower than your current rate.

Two reasons why this no longer applies.

Biggest reason this no longer applies is that the rates back in the 1980s were much lower than they are today. Refinancing from 7% to 6% is equivalent to refinancing from 14% to 12%. When refinancing you must make sure that the cost of refinancing is worth the end savings.

These days there are advertisements for mortgage refinancing and whenever you notice one that offers a lower rate than you current loan look into it. It will be worth investigating if you can save a few hundred dollars a month.

Knowing when to refinance if never a for sure thing.

Are interest rates as low as they are going to get? No one knows for sure so it can be a bit intimidating but with some patience and with a little research refinancing should be a helpful tool not a harmful one. Know what you are doing and make sure those benefits outweigh the cost of refinancing. Refinancing can be the answer that you have been looking for to get stable again.

Find More Mortgage Refinance Articles

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  4. Understanding the Usefulness of Mortgage Refinance Calculator
  5. Tips for Home Mortgage Refinance

Source: http://www.rai-chertkoff.com/2012/02/27/when-to-refinance-a-mortgage/

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