When Is The Best Time to Refinance Your Home Mortgage?
1 Comment
- by Owl Staff
- Posted on Dec 7th, 2009
- Filed under: Money / Personal Finance / Banking and Loans / Loans / Mortgages
Finding the best refinancing, or the best time to refinance a home mortgage loan, can send even the most mathematically capable homeowner running for cover. But with a few basic tips, finding the best refinancing terms can make affording your home a lot easier.
First, realize that timing the financial markets is almost impossible, so if you see a good interest rate you want, jump on it quickly and have your refinancing application completed and ready with a loan officer.
It's also a good idea to start with a mortgage calculator to find out what type of loan you want, interest rate and how much you should expect closing costs to be.
A good rule when looking for the best refinancing options is this: It's a good time to refinance if you can save at least 1% in interest on a loan similar to yours. So if you have a 30-year fixed rate loan, look for the same loan at 1% less than what you have now.
For anyone with an adjustable-rate mortgage or a balloon payment, finding the best refinancing and a low, fixed-rate mortgage is a good idea as the Fed considers raising interest rates.
First, realize that timing the financial markets is almost impossible, so if you see a good interest rate you want, jump on it quickly and have your refinancing application completed and ready with a loan officer.
It's also a good idea to start with a mortgage calculator to find out what type of loan you want, interest rate and how much you should expect closing costs to be.
A good rule when looking for the best refinancing options is this: It's a good time to refinance if you can save at least 1% in interest on a loan similar to yours. So if you have a 30-year fixed rate loan, look for the same loan at 1% less than what you have now.
For anyone with an adjustable-rate mortgage or a balloon payment, finding the best refinancing and a low, fixed-rate mortgage is a good idea as the Fed considers raising interest rates.
