What are some Tips to help you to decide if you should refinance your mortgage
The following common-sense guidelines will help you make an objective decision:
Tip 1: If you do not plan on keeping the house for very long, then refinancing is likely not in your best interests.
Tip 2: Unless you are getting a lower interest rate, refinancing your home may cost you more money in the long run. This may require you to pay higher monthly payments.
Tip 3: If you have have a mortgage (especially adjustable rate mortgage), keep a close eye on mortgage rates. If you can get a lower, fixed rate by refinancing. Then you may be able to save thousands of dollars over the life of that “refi” loan.
Tip 4: An enduring myth says that you should not refinance your mortgage, unless the interest rate is a minimum of two points less than the current loan. This is not always true because there may be other benefits to refinancing.
Tip 5: If you are paying private insurance on your current mortgage, then refinancing may permit you to cut this unnecessary expense from your budget.
Tip 6: With refinancing, keep a close eye on the closing costs. They can cut into the amount of money you will save through the refinancing process.
We hope these tips were helpful. If you have any more questions or want some scenarios to decide if you should refinance your mortgage Call us 909-920-3500.
Teresa Tims is President of TDR Mortgage in Charming Downtown Upland CA. She prides herself in offering quality home loan products, competitive pricing and knowledgeable assistance when helping her clients select a home loan. Teresa is a life-long resident of the Inland Empire.