| Before you say, "I want to refinance my mortgage," | | | | mortgage," you must know what type of mortgage |
| you must understand that refinancing has many fees | | | | you would like to get. There are quite a few types of |
| and can cost you a lot in the long run. It is not | | | | mortgages but the big two are fixed interest rate |
| recommended to refinance a mortgage if you plan on | | | | mortgages and adjustable rate mortgages. No matter |
| using the proceeds to buy a car, go on vacation or get | | | | how enticing an adjustable rate mortgage is, a fixed |
| that new entertainment system. A mortgage refinance | | | | interest rate mortgage is the right choice nine out of |
| is a smart choice when it can be used to save you | | | | ten times. This is because the rate on the adjustable |
| money such as to consolidate your debt and pay less | | | | rate mortgage can change at any time where with the |
| mortgage interest rates. | | | | fixed rate mortgage you will always know your |
| If you think you would like to move forward, go out | | | | monthly payments. You may have to pay 5.5% on |
| and find mortgage interest rates by different lenders | | | | your fixed this year as opposed to 4.75% on the |
| on mortgage refinances. Now you must add up all the | | | | adjustable, but in a few years it is very possible and |
| fees and see if between the extra fees and the | | | | even likely that you would still pay 5.5% on your fixed |
| spread between your interest rate and the rate of the | | | | but well over 10% on the adjustable. |
| refinance how long it will take you to break even and | | | | You should shop around for the best deal and write |
| make a profit from taking the refinanced loan. For | | | | them all down so you can do a cost/benefit analysis |
| example if your interest rate now calls for you to pay | | | | to see which I any mortgages you should take on. You |
| $1500 a month, and the refinanced loan calls for you to | | | | should also read the fine print of the contract because |
| pay $1400 a month but has a closing fee of $3000 it | | | | there can be penalties or the most ridiculous of things |
| will take you 30 months before you begin to realize a | | | | such as paying early, and remember, deals come and |
| savings on your loan. Because of the above example | | | | go. Don't be rushed by an over pushy salesman |
| you must make sure that the savings is significant or | | | | looking to make his commission. Stay cool headed and |
| the fees will eat you up. | | | | don't be afraid to ask for advice! |
| Once you are sure you are ready to "refinance my | | | | |