Another Chance for a Refinance
Posted on | June 9, 2010 | No Comments
If you have an interest rate of over 6%, you may want to consider a refinance of your loan. You will also need to consider your blended rate if you have a first and a second as this could be a lot higher than what you can currently get. However, before you go hog wild and do a mortgage refi, ask your self a couple of very important questions first.
- Will I stay in this house long enough to recoup the closing costs of a refinance? This is traditionally 4 to 5 years.
- How much will this actually cost me to do a refinance and am I willing to pay that?
Most people just see the interest rate as lower and assume (you know what they say about assumptions…) it’s a better deal. However, that is just not true in many cases and as much as the regulators have tried to protect the consumer, it is still up to you to make the final decision. And making that decision is not always an easy one. This is just one reason to work with someone who can fully explain your cost and show you how much time it will take to pay those cost in savings to your payment.
If you are considering a refinance for your home it is also a great time to take a look at your homeowners insurance as well to make sure you are fully protected. Insurance is another place you need someone that can explain the in’s and out’s for you so you don’t get caught not able to fully rebuild or recover from a loss.
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