I spoke to a client today about his mortgage refinancing currently in progress. We have worked together before, so he is aware of the many things that go into getting a mortgage approved and closed. There is much more to know and do when refinancing in the current market than ever before. The bottom line is, is it worth it?  “Worth it” comes down to dollars and cents and what are you saving. There is no rule of them to go by, because each person has a different circumstance.

 

 

 

So, here are a few questions to ask yourself:

 

·         How long will I be keeping the house

·         Am I refinancing to lower the interest rate and monthly payment or is there something else

·         What are the other benefits? Consolidation, lowering the term fixing the interest rate?

·         Will my monthly payment go down

·         How much is it going to cost me to refinance

·         How long will the monthly savings take to recoup the closing costs

·         Is it worth the aggravation?

 

 

In order to benefit from the hard work and expense of refinancing, you need to make sure it is worth it.  If you are not saving much in a monthly payment or changing the loan for some other benefit, then why bother to save a few bucks. If you are going on the fact that the interest rate will be some ridiculous rate promised to you by late night TV, please make sure this is true.

 

You need to speak to a reputable person and get all these facts and figures as they pertain to you. Each loan is different based on loan amount, loan to value, credit scores, property type equity, etc. Speak to a reputable person. Before you proceeds, make sure that you understand the terms and conditions of the loan as explained to you. If it sounds too good to be true, it is!

 

Dale Siegel