Refinancing Your Home - Is the Time Right?

Refinancing your home is a major decision not to be taken lightly, even in this era of low interest rates and easy money. While every mortgage company in town is touting the strategy of getting a new loan before rates rise again, there are several things you'll want to be mindful of before you go about refinancing your home.

In my view the key to refinancing your home isn't just the rate they're offering you: it's the total package looked at not only in terms of today, but a few years down the road. Many people have taken out new loans that really weren't quite right for their long term situations, thinking they'd be able to refinance again in the not-too-distant future. That may or may not prove to be true. No one has a crystal ball that'll give you a definitive idea of just where rates will be even a year from now, so try to approach this with a somewhat more long-termed view. It's very easy to get tempted by the prospect of easy, fast cash, but in the end you end up giving it all back in terms of higher payments, and worst case, be unable to make your payments and lose your home. Just look at all the costs associated with this new loan, determine what the payments will be in 2, 5 and 10 years, or whatever your timeline is, and make an informed decision unfettered by a mortgage broker's "opinion" what's "best" for you. They have a vested interest in getting you into a loan, any loan, and WILL NOT, repeat, WILL NOT, have your best interests at heart when you go about refinancing your home.

Some things to consider when refinancing your home would be the type of loan,(fixed,ARM, etc.) the rate, the term, the costs associated with the loan, any cash equity you'd like to take out, and the time and documentation necessary for refinancing your home. This is a wildly competitive market, and please do yourself a favor and shop around. The same loan one lender will offer you can vary greatly from another just down the street as far as total costs go. Don't be afraid to say no: they're not doing you a favor by "giving" you this loan. They're reaping many thousands of your dollars in interest, so make sure you get what you want, not what they want to sell you. Remember, you're refinancing your home, not their summer vacation!

All in all, when refinancing your home, take your time. Shop around, compare, and you are the customer, and what was that they say about the customer always being right? You are, as long as you do your homework when refinancing your home.

Keith Thompson is a real estate investor and webmaster at Mortgage Loans Today where you can find more information and resources for refinancing your home

---

Home Loans For People With Adverse Credit History

Whether you are planning to purchase a home for the first time or refinance an existing mortgage, plan on comparing lending companies before you accept a financing... Read More

What is a Fixed Rate Mortgage?

As the term implies, with a fixed rate mortgage the mortgage rate is fixed for a set period of time, so no matter what movements occur in... Read More

Sound Financial Standing Entails Capital Raising Remortgage

Raising capital is integral for growth and expansion of an individual in more than one way. Every project and venture is meant to contribute in some way... Read More

Why Its Important to Get Pre-Approved

Having a pre-approved mortgage will give you the confidence of knowing exactly what you can spend on a home before you start looking. You will also be... Read More

Mortgage ? What, Why, When, and How?

What is a mortgage? Here's what The New Merriam ? Webster Dictionary definition is: "a transfer of rights to a piece of property usu. as security for... Read More

Avoiding Foreclosure Scams

If your mortgage company is threatening foreclosure, there are things you can do to avoid it (see my article titled "How to Avoid Foreclosure"). However, you should... Read More

Interest Only Home Loan ? Is It Right For You?

There are many benefits to interest-only mortgage loans. There are many situations where an interest-only mortgage loan could be best for you.Here are some of the situations... Read More

Home Equity Loan ? Good Choice for Luxury Purchases?

Home equity loans or lines of credit have increased dramatically in popularity in recent years. One of the reasons is that interest rates are at or near... Read More

Basic Tips for First Time Home Buyers

The first time you purchase a home is an exciting experience. You are anxious to call the place yours and maybe a little worried about how the... Read More

Why Refinance Back into a 30-Year Loan?

One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their... Read More

Getting a Home Improvement Loan: What Your Bank Needs

The popularity of stores like Home Depot and Lowe's show how many homeowners are jumping on the home improvement bandwagon. Maybe you're thinking of redoing part of... Read More

How a Commercial Mortgage Can Help Your Business

A commercial mortgage or commercial remortgage is a business loan which is secured against a commercial property.Commercial mortgages are often used to buy business premises, such as... Read More

Mortgage Debt Elimination in 5 to 7 years!

Mortgage Debt Elimination shows that most home loan debts will be secured. Secured debts usually are tied to an asset, like your house for a mortgage. If... Read More

Reverse Mortgage Providing Peace of Mind Without Sacrificing Safety or Security

For many seniors one of their greatest sources of security is their home. It not only provides a comfortable and familiar environment, but it provides a sense... Read More

Decision Time: Home Equity Loan or Home Equity Line of Credit?

Home equity loans and home equity lines of credit continue to grow in popularity. According to the Consumer Bankers Association, during 2003 combined home equity line and... Read More

5 Tips for Savvy Use of Your Home Equity Line of Credit

Tapping your home's equity to pay college expenses, consolidate credit card debt or even to buy a new car or boat is common place. Many economists attribute... Read More

Using a Calculator to Assess Your Loan

Buying a house is a very important step in your life. Every family dreams of having their own home and whether you are looking into your first,... Read More

Mortgage Loan Information - Know The Basics When You Refinance or Purchase a Home

If you are currently looking for a new home, chances are that in all the excitement you won't really give any thought to the type of home... Read More

Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK

Add the term 'online' and it will open for you an exhaustive assortment of opportunities. Add online to mortgage and it will have the same effect. So... Read More

How to Avoid Paying Mortgage Insurance

In today's world, a borrower should not be paying mortgage insurance (PMI) on their home mortgage with a few exceptions such as an FHA loan. Mortgage Insurance... Read More

A Guide to Getting a Home Improvement Loan

If you've got a few things around the house that you'd like to spruce up but don't have the money for, you might want to consider getting... Read More

No Money Down Mortgage Loans - Ways To Get Approved For a Home Loan Online With Zero Down

No money down mortgage loans enabled more people to own their own home. The following ways will help you get approved for a home loan online with... Read More

Bankers Dont Want You to Know That You Pay for Your No Cost Home Loan Forever

With mortgage rates continuing on a downward trend, the competition in the business is fierce. A day never passes that I don't hear some crazy advertisement about... Read More

Bridging Loan Basics

A Bridging Loan is a short-term loan used as a way to provide funding for the purchase of a new property while the borrower awaits the sale... Read More

10 Things to Look for in a Home-Equity Line of Credit

If you are a homeowner, you've probably received offers to apply for a home equity line of credit (HELOC). Handled with care, home equity credit lines can... Read More

Reasons To Get A Home Equity Loan

Using a home equity loan really depends on what your needs, wants and desires are that prompt you to take the home equity loan in the first... Read More