Why Refinance? -
Recommended Refinance Program
Fundamentally, people refinance
because they either want to save
money or spend money. This article
discusses the most common circumstances in
which you might save money by
refinancing.
There may be conditions which require
you save money in the short-run. An
Adjustable Rate Mortgage (ARM) with
a low start-rate can temporarily
lower your mortgage payments. Depending
on the loan, you could substantially
reduce your payments for a year
or more.
You might believe you'll save money
in the long-run by switching from
an ARM to a fixed-rate loan--and
you could be right. In this case,
you're assuming that rates will
eventually increase enough to justify
the cost of refinancing. There is
less certainty of saving money in
this scenario because the future
is unknown and rate comparisons
are hypothetical.
Whatever your reason for refinancing,
the process begins by comparing
the various loan options you have
available, including keeping your
current loan. Real estate loans
usually have income tax effects.
Before rushing into a new loan,
consider having your figures checked
by your tax advisor. Talk
to your current lender. They may
reduce some of their fees in
an effort to keep your
business, or because they may have
reduced paperwork.
For each loan you are considering,
obtain an amortization schedule
and Good Faith Estimate (GFE). A
complete amortization schedule will
identify the principal and interest
portion of your monthly payments
over the life of the loan. With
it, you can accurately determine
the interest paid within any time
period. The (GFE) will itemize
costs associated with obtaining
the loan. The immediate costs of
the transaction will be shown on
the GFE, while the interest expense
over time will appear on the amortization
schedule. The information in these
documents is required to make an
informed decision regarding the
best loan for you.
Sponsored Ads:
REFINANCE HOME LOAN
Recommended Refinance Program
-
