3 reasons to refinance a mortgage

You can reduce your mortgage interest, points, or more?

The most popular rule of thumb that you should consider refinancing if your current mortgage rate of 0.50 percent less than the current exchange rate. For example, a 30-year loan of $ 200,000, 6% interest, you can actually reduce the monthly price 125 USD if you can get rate of 5.5 percent.

But we also take into account the cost of refinancing. If not, then use the 0.50 percent savings is not enough to cover the costs of refinancing, which is 2-4% of new loans to pay. But if you can change the growth, which points lower than current prices, of course, possible to move forward.

Extra money?

Home equity loans and credit is still difficult. But if there is a pile of your own home, then refinancing is the right choice. In fact, refinancing your home, but even more credit than you need, and pocket the difference. For example, if the mortgage is refinanced $ 80,000 $ 200,000 $ 100,000 and $ 20,000 in cash, to come.

Banks usually take place to reduce the amount normally refinance.They in his pocket, where a 30% stake in the new loan, which means that only 70% of households actually want to borrow. Be careful, because rare is the final price for these operations must be high somewhere in the 0.25 to 3.0 percent. You find yourself, or better still, to negotiate with the low cost and close the loan, to the kitchen to a woman, or to pay the high fees in the near future.

Farewell to the adjustable rate mortgage?

If you still do not plan on the recurrence rate of control and wants to sell the write speed of fixed-term rates are now used, but fixed rates are still low. Remember that when the economy reaches only a way to higher prices. Remember, the mortgage rate is quite low now, it will avoid the temptation of that rate and lock this rate adjustment (again). Does not lose the super-low interest rates, but few of the fixed exchange rate will be useful in the future.

This would normally be two years from their homes, or even refinancing. This, if possible, to sell the next two years, the non-financial. Your continued use of this criterion for two years in the head, and the funding proposals are offered to businesses worldwide. View the numbers and realize that lasts for more than two years, a balance must be found in alternative products.