Refinance

Refinance

The option for change...

As we've already shown at Fixed Rate Refinance, a mortgage is a repayment agreement between you and your lender with your home as collateral. A refinance then is simply the transfer of the repayment obligation from one loan to another. You can find a different home loan with your current lender and avoid any excess lender fees, but it isn't always guaranteed your current lender will offer the lowest refinance rates.

When to refinance

When you took out your initial mortgages you knew you were facing a difficult battle, a drawn out , intense financial fight to the end when your home finally became yours entirely. You also knew that times change, and the mortgage you took out at the beginning may eventually become financially obsolete. You should consider a refinance when:

• The rates on your current fixed rate home loan are much higher than those for current mortgages. If you stand to save a significant amount on your interest payments, look into it.
• You've taken out an ARM and are convinced - as the great majority of mortgage professionals across the country - that rates are going to rise very soon. Prepare against future cost increases and avoid missing our on today's low fixed rates.
• If your current lender is not accommodating to your needs or demands for home equity financing, or if you feel you are being taken advantage of in any way.

There are so many competitive lenders today that each individual home owner can afford to be a little pushy, can afford to tell your lender the direction you want your home loans to go. If you believe you can save money or make your life easier with a refinance - consider it.

Look before you leap

We emphasize the need to consider a mortgage refinance before going at it at full speed. Once you find that amazing refinance rate determine how long it would take for your new rate savings to compensate for the refinancing costs - if ever! Also, be sure the mortgage your are refinancing into isn't going to end up costing you more - if you've spent 20 years of a 30-year mortgage and are looking to refinance into a lower rate, make sure that refinance loan isn't set up for another 20 years. Take a look at all sides of your refinance opportunities before you agree to anything - use calculators, use rate comparisons, but most of all be sure to use your better judgement.

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