| So you've lived in your home for some time now | | | | interest to make up for the fees you have to |
| and have been content mailing off your mortgage | | | | pay to rewrite your mortgage. The best time to |
| payment every month. Yet when you turn on the | | | | refinancing, according to some experts, is when at |
| nightly news you see that mortgage rates are | | | | least 40% of your monthly mortgage payment is |
| 1% lower than what you locked into 10 or 15 | | | | still going towards interest fees. |
| years ago and realize quickly that you may be | | | | If you do decide to refinance it is important to |
| paying more money than you have to in interest | | | | remember all the tricks we've talked about |
| rates on your mortgage. For millions of people | | | | before when shopping around for a mortgage. |
| every year, refinancing is an option they take to | | | | Get plenty of competitive bids, keep a close eye |
| give their mortgage a "health check" of sorts and | | | | on the fees, and be sure to read and understand |
| to help them lock in lower rates or take | | | | the risks involved. |
| advantage of increased property values to make | | | | Another reason that many homeowners refinance |
| some improvements to their homes. | | | | their mortgages is to take advantage of |
| Nobody likes to pay more than their neighbor did | | | | increased property values as to "cash out" on |
| for something - especially their house! Refinancing | | | | some of the equity. Say you have a child who is |
| is an activity that is as much a part of the | | | | ready for college and you need a way to pay for |
| mortgage process nowadays as taking out a | | | | it. Your home, with cost $100,000 twenty years |
| mortgage is to buy a new home. A smart | | | | ago when you took out your 30-year mortgage |
| homeowner knows that interest rates will rise and | | | | may now be worth $200,000. By refinancing you |
| fall and that by keeping track of where they are | | | | can in essence write yourself a check to pay for |
| currently they can save a lot of money over the | | | | home repairs or other needs and get the money |
| life of their mortgage note by locking in a lower | | | | easier at a better rate then taking out a 2nd |
| mortgage rate now, even if it means paying a | | | | mortgage. |
| little money up front. Refinancing helps millions of | | | | For those who use it wisely, refinancing can be |
| homeowners get lower rates on their mortgages | | | | one of the best financial tools you have. Not only |
| by paying off their old mortgage and writing a | | | | does it hold the potential to help you save |
| new one. | | | | thousands of dollars in interest charges by getting |
| Of course, as with any financial transaction, you | | | | you a lower rate, but it also lets you take |
| should carefully review all the costs associated | | | | advantage of increased property values to help |
| with refinancing and the potential benefits versus | | | | pay for other necessary items that come up in |
| the risks. Typically, if you only have a few years | | | | life. Yet another reason why owning a home is |
| left on your mortgage note then refinancing is not | | | | truly one of the best financial moves you will ever |
| for you - you simply won't save enough in | | | | make. |