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Much Is My House Worth?
Getting
a Mortgage Quote Online
Mortgage Tips from
Me to You
Mortgage
Refinance: 4 Ways To Know Its Time to Refinance Your
House
Mortgage
after Bankruptcy
Buying your
First Home
How
Much Credit can you Afford?
Mortgages
- Which Loan is Right For You
Poor
Credit? Get a Sub-Prime Mortgage Now, and Refinance
later
Three Rules of Thumb for Mortgage Refinancing
You might think that deciding to refinance a
mortgage requires only a quick comparison of loan interest
rates. Unfortunately, that’s not really true. Refinancing
is trickier than that! Fortunately, three useful rules
of thumb can often help you make sense of refinancing
opportunities.
Rule 1: Don’t Ignore Total Interest Costs
You really want to use refinancing as a way to reduce
the total interest cost you pay. While that sounds simple
in principle, it is sometimes difficult to do. The interest
costs you pay are a function of the interest rate, the
loan balance, and the loan term period.
When people refinance, they tend to focus solely on
the loan interest rate. But they often don’t pay
as much attention to the loan term or the loan balance.
When you use refinancing—even refinancing at a
lower interest rate—to increase your borrowing
or to extend the time over which you borrow, you often
aren’t saving money.
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