Question by CarolNV: Mortgage refinance when is the best time ?
Refinancing mortgage is not an easy decision, when is the best time to refinance ?
Answer by cody s
Interest rates fluctuate together with economy. Depending on what they were at the time of closing the loan, you may have chosen an adjustable rate loan or a fixed rate loan. That means that you get the benefit of keeping low interest rates or modifying the rates to a lower value if you have an adjustable rate loan. If, on the other hand, they were to rise to abnormal values, there is a maximum or “cap” to limit the incidence of rates on the loan. Read more http://refimortgage-online.blogspot.com/
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Low interest rates, but that’s the obvious. If you have some high interest debt, like credit cards, loans, car payment, etc.. then that might be something to look into. Get out and stay out of credit card debt. You waste so much money on interest. Refinancing and paying off your high interest debt can save you a lot of money. I did it not too long ago and ended up saving more than $ 300 a month on payments.
If you’re looking to refinance just to refinance you’d be smart to invest most of it elsewhere. But go ahead take some money and go have fun. You’ve earned it.
It completely depends on what your goals are when you are refinancing. Are you looking for a low rate? Do it when the rates really dip down. Are you looking to consolidate debt? Do it when you need to but make sure that the fees you are charged do not put you in a worse situation. Are you looking to get a fixed rate? Watch the rates and do it when you get close to that ARM expiring.
I work for a title company and know that one of the biggest factors in refinancing is finding a good loan officer. I have seen many good and many bad ones. If you would like to be referred to a few that I would send my own family to, shoot me an email and I would be glad to share.
when interest rates are low
here are some suggestions
It’s predicted that rates will rise within the next few months.
Only refinance if you have an ARM and want to go to a fixed rate; or if you can qualify for a lower rate of 1-2 % points less than your current rate, and if you are going to remain in the house for at least the next 2-5 years. Figure out how much you will actually save per month by refinancing before you sign on the dotted line.
Don’t fall for any advertised schemes that offer artificially low rates. Check the list of fees associated with the refinance loan.
Don’t take equity out of your house to pay car or credit car debt. Most real estate markets are soft and may remain like this for several more years. If circumstances change and you need to sell quickly, you have the additional debt to repay. Only refinance for the remainder of the original loan. That is the smart way to go.