Is This Another Refinance Boom?
Posted on | January 12, 2009 | No Comments
All of a sudden the holidays are over and everyone is looking to refinance their homes. It does look like another refinance boom and there are plenty of companies that are soliciting clients through the mail. I’ve had several people call me just this past weekend about letters they have received. Both of these families are not in position to really do a refinance at the current rate but it’s always wise to keep options open to reducing your mortgage payments.
The one thing I counsel people not to get hung up on is the interest rate alone. You must always consider the cost of the loan in tandem with the rate to make sure you can recoup that cost within about 36 months from savings due to the reduction of your mortgage payment. There are a few exceptions to this rule and you will need to discuss those with your lender as they will need additional information about your debt load and other criteria to see if a refinance will better your situation overall. It is always better to pick up the phone and call your lender to see if it will help you out than miss the opportunity all together.
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