Should I refinance my home mortgage?

Monday, May 15, 2006

Essentially, you have to determine: Are the fees and time it takes to refinance going to be worth it for the amount of money I will save? One thing is for sure, if you have the right situation you can greatly benefit from refinancing your home mortgage loan. The best way to figure out whether you, in particular, are in that situation is by talking to professionals and comparing mortgage rates-both of which you can do here at Mortgageloan.com.

Benefits of Refinancing

Everyday thousands of people refinance their home mortgage because there are many attractive reasons to do so. Given you have the right situation refinancing your home mortgage can be the smartest financial decision you make this year. Every factor used to determine your refinance loan is in constant flux: interest rates, your house value, credit rating, current equity and debt standing, which make any possible point in time grounds for a new favorable refinance loan.

  1. Take advantage of a lower interest rate

  2. Shorten or lengthen the duration of your loan

  3. Lower your monthly payments

  4. Get cash out

  5. Lock in a fixed rate while they are still low

Concerns about Refinancing

Just as with the creation of any other new loan there are fees associated with refinancing your home mortgage. Depending upon how long you have been paying on your current loan, the interest vs. principle pay down will be a consideration. With a refinance, which means taking on a new loan, the bulk of your payment will once again go towards interest.

You also have to consider how much longer you will remain in your home. If you are going to save $1,400 a year by refinancing, but you have to spend $4,200 to get it done, then you will have to own that home for more than three years to realize any savings on that level.

Regardless of any of these concerns, if your situation is correct, you can save a ton of money by refinancing your current home mortgage loan. Do the research and do in now by comparing mortgage rates with us, time is of the essence and it may not be in your favor, but why?

Mortgage Rates: Up, Up, and Away

Recently, the new Federal Reserve Head, Ben Bernanke, picked up where Alan Greenspan left off and raised short-term interest rates, which affect both fixed rates and those with adjustable-rate mortgages. Rates went north for the 15th straight time since they bottomed out at forty year lows in 2004. What this means to you: money costs more to borrow-mortgage rates rise in tandem. Rates will only be going higher in the foreseeable future is what can be assumed from Federal Reserve rhetoric.

Begin your search to refinance your home mortgage today by comparing mortgage rates now. Get in contact with multiple lenders, do your homework, and find a loan that is right for you. Start on one of the tracks above.

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National Rates

Loan Type Today +/-
30 yr fixed 4.47
15 yr fixed 3.78
5/1 ARM 3.13

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