Month: March 2021

Time to Refinance the Mortgage?

Is it time to refinance the mortgage?

Deciding whether to refinance your mortgage is more than a matter of “rates are down let’s do it.” Unless you do the homework, refinancing can actually cost more in the long run. I refinanced in 2018. Rates have dropped, but in my case refinancing now doesn’t make sense. Here are some tips and links to help you decide if this is a good time to refinance your mortgage. And if it is, how to do it efficiently, saving both time and money. 1. Things to know before you start Mortgage terminology. Find definitions of key terms at consumerfinance.gov. Things to consider before refinancing. See the article at kiplinger.com. Warning: Do not click on ads offering “free” mortgage refinance calculators. See #2, below. How long you plan to stay in your home. Tip: If you plan to sell in one or two years, refinancing probably doesn’t make sense. Your current loan terms, monthly payment, balance and interest rate. Tip: Unless interest rates are at least half a percent less, refinancing probably isn’t worth the cost. Estimated value of your home. See zillow.com for a rough estimate based on similar homes nearby. Not totally reliable, but better than paying an appraiser at […]

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