Mortgage Refinancing Tips: To Refinance or Not To Refinance, That Is The Question

Refinancing your mortgage may be a great way to save money, pay off your house sooner, or tap into your home's equity. Here is what you should consider before refinancing.

Check Your Home's Equity

Before you even consider refinancing, you need to know your home equity. If you have little equity in your home, it may be difficult to get a loan, and it will certainly be hard to get a good deal if you do. Borrowers with at least 20% equity in their home will usually have the best chance of refinancing.

What's Your Objective?

Consider your refinancing goal. Are you're looking to lower payments, interest, or shorten the loan term? Do you want to change from an FHA to a conventional loan?

Consider the Costs

Many people are drawn to "no-cost" refinancing loans, but it usually means paying a higher interest rate. With a long-term loan, the interest can add up. If you're willing to increase the principal loan, a lender may offer to add the costs to the loan, but this will usually mean higher payments. Consider which will work best for you.

If you can pay closing costs out of pocket, you may save more in the long run. If your credit is very good, lenders may be willing to negotiate and compete for your business, so shop around and compare offers.

Do Your Homework

Get online and begin comparing lenders. Find out what types of programs they offer, get their qualification guidelines, and check the costs. After narrowing your choices down based on your needs, get quotes from three different lenders so you can compare offers.

Photo: Pexels

More

Have you heard the song “I’m Sexy And I Know It?” It’s kind of catchy and comical at the same time. Do you ever wish you would come across as sexy...

Morocco is the place to go for an exotic vacation with much cultural diversity. Positioned between Africa and Europe, Morocco has many cultures...

Eczema, which is also known as dermatitis, is a condition that affects the skin, making it dry, irritated and excruciatingly itchy. The cause of...

There are a lot of reasons that you may consider refinishing your basement. Some people do it in order to add value to their homes, which is...

Most people scour the internet for tips and information when it comes to home decorations. This article is going to be a little different. Instead...

Latest Fab Stories

Our homes are extremely special for us and hence we do our best to decorate them to the best of our abilities. What can add a touch of glamour is...

Owning your dream home is a blessed feeling, however, not everyone gets to live their dream. Budget and space constraints are the major reason for...

If you keep meaning to eat healthier but find yourself falling back on the same old unhealthy favorites, your problem may not just be your diet....

Once you have decided that it may be time to start dating or search for a partner, you may consider the options on how to meet potential matches...

Fall is one of my favorite times of the year. The brilliant colored leaves, crisp morning air, football games and decorating the home! One can...

All sibling rivalry and family arguments aside-- if you grew up with a big sister, you're probably luckier than you realize. There are a lot of...

Confidence is beautiful. Confidence brings peace of mind. Confidence is feeling good about yourself. But do you have it? Ask yourself these...

Mirrors are a great addition to any home, and with the art of Feng Shui, can be an aid to bring a wealth of harmony and good energy to the home as...

Paying off your student loans faster will not only remove a psychological weight from your shoulders, but it’ll also save you thousands of dollars...

How many couples do you know who are truly happy? Sure, everyone seems happy in the beginning-- but how many of them settle into lasting happiness...

Booking an all-inclusive vacation is supposed to save you money and headaches. Unfortunately, if you plan poorly, you may find yourself with a big...