| The biggest decisions in life are the ones we think | | | | You should not have any surprises in this area or |
| the most about and carefully consider the impact | | | | any other area. The refinancing costs vary from |
| of our choices. If you are contemplating | | | | state to state and are dependent upon what |
| refinancing your home there are four things you | | | | outside entities such as appraisers or lawyers |
| need to consider: You need to think about what is | | | | need to be involved in the details of your |
| your current mortgage rate and the payment | | | | refinance along with your lender. Knowledge allows |
| amount. You need to think about what the new | | | | you to prepare as well as determine if you will be |
| mortgage rate will be and your approximate costs | | | | able to recoup the costs fast enough to justify |
| and fees to refinance as well as how long you will | | | | refinancing. |
| be staying at your current residence. | | | | 4. Knowing the payback period is essential to |
| 1. By looking at your most recent monthly | | | | determining if you will be in your home long |
| mortgage statement you can most often find | | | | enough to make refinancing a worthwhile |
| your current mortgage rate, payment amount as | | | | investment. You need to be in the home long |
| well as the total amount outstanding on your | | | | enough to recover the costs of the refinance at |
| mortgage loan. If you do not see this information, | | | | a minimum. Often this is not an easy decision |
| call your lender and get it. At a minimum, the | | | | even with the information of the length of the |
| outstanding principal balance should be listed on | | | | payback period. None of us are capable of |
| your statement. | | | | knowing exactly what will happen in the future. |
| 2. Because mortgage interests vary almost | | | | This knowledge is simply significant so that we |
| hourly, you need to do your homework ahead of | | | | can make our best guess or estimate of what will |
| time and research what the current mortgage | | | | happen based upon predictable factors as well as |
| rates are. Up-to-date mortgage rates can be | | | | the probability of the unpredictable (such as a |
| found at or by checking with your local financial | | | | corporate relocation) happening within a certain |
| institutions. When you refinance you should really | | | | period of time. |
| consider decreasing the repayment time of the | | | | Knowledge and the application of the same |
| loan. Even a small reduction in mortgage interest | | | | determine the ultimate success of the house |
| can generate enough causal effect and increased | | | | refinance. If this seems overwhelming, begin |
| cash flow to help you make the same or slightly | | | | interviewing lenders who can discuss your specific |
| larger payment than what you were paying | | | | needs and give you the answers and solutions |
| previously to reduce the length of the loan. | | | | you need. See below for more information on |
| 3. Know exactly what your refinancing cost will be. | | | | Mortgage Refinancing. |