Refinancing When Is It Worth It

Refinancing: When is​ it​ worth it?
When is​ it​ worth it​ to​ refinance your house? This guide will take you​ through a​ couple of​ the​ points you’ll need to​ know about when you’re trying to​ decide whether to​ refinance your mortgage or​ not.
Generally,​ you​ need to​ be aware of​ what the​ interest rate you’re paying on​ your mortage is​ .​
When interest rates start to​ go down,​ you​ have to​ be ready to​ jump on​ it​ and take advantage of​ a​ lower rate .​
It generally costs a​ couple of​ thousand dollars to​ refinance,​ though,​ so you​ need to​ think about several factors before deciding whether or​ not to​ do it.
First,​ how much are you​ paying now? you​ need to​ know both your monthly savings and the​ amount of​ time you​ expect to​ be there .​
Only refinance if​ you’re sure that you​ will be staying in​ that house for awhile - moving and selling your house would wipe out all the​ benefit of​ refinancing .​
You also need to​ think about whether interest rates will go lower in​ the​ future .​
You don’t want to​ jump on​ a​ refinancing and then suddenly find out a​ few months later that interest rates have dropped a​ point .​
Even a​ small change in​ interest rates can produce a​ large gain over the​ life of​ your loan,​ so you​ want to​ make sure you’re refinancing at​ the​ low point .​
Talk to​ your bank loan officer - they’ll generally tell you​ whether they think it’s a​ good idea and what direction they think interest rates will be going .​
Ask them to​ show you​ specific calculations,​ and then check them yourself.
Refinancing When Is It Worth It Refinancing When Is It Worth It Reviewed by Henda Yesti on August 23, 2018 Rating: 5

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