Refinancing?

You have decided to look into refinancing your current mortgage, but which options are right for you?

Should I refinance my home mortgage?

That's a question many homeowners ask when lower mortgage rates become available. But, how do you decide if refinancing makes sense in your particular case?The answer depends on many factors, including your tax bracket, the length of time you plan to stay in your home, and the additional costs and charges you must pay for the refinancing.

Refinancing your home costs money. There are just as many costs as when you purchased, zero cost mortgages involve a higher than market rate that will cost you in the long run.

Lowering your rates
The most common reason to 'refi' is to lower your interest rate. Conventional wisdom is to lower two points, but even one point can make it worthwhile.

What are the costs in refinancing?
This can vary depending on what interest rate you want to refinance at. If it is lower than market rate, you may have to pay discount points.

What will be the effect on taxes?
Escrow, or Impounds, can be tricky business when you refinance. You will need to reestablish your account with the new company and your existing company will refund your current balance within 30 days.

Are there other programs to consider:
When refinancing, be sure to look at different programs. Often, it is a good time to get a shorter term loan with a lower rate that will knock years off the mortgage with little or no increase in payment.

Use our Financial Calculators to find out if refinancing is for you.