Refinancing Facts Consumers Need to Know
When it comes to refinancing, there are many factors which can tell you if you are getting a good deal. Unfortunately, most of us do not pay as much attention to them as we should. Before you get too involved in making your refinancing decision, you should ask yourself a few important questions:
“Cash-in” or “cash-out” refinance?
Ask yourself if you want to put money into your mortgage (by paying points up front to lower monthly payments) or take money out (to make home improvements and pay other bills).
How long do you plan on keeping the new loan?
Because of up front costs like closing fees, the longer you keep your refinanced loan, the more money it will save you. Understanding how long you are going to keep your loan will help you decide how good a deal it really is.
Which type and term of loan do you want?
Since refinancing isn’t a simple process, some people assume that they can only refinance into a similar mortgage. This is not true. Changing the term or type of mortgage you have is precisely what a refinance is for. Selecting the proper term and type of loan for your situation could have you owning your home years sooner and ultimately saving the most possible.
Try the innovative Bills.com refinance calculator to learn if a mortgage refinance is cost effective for you and your unique circumstances.