How To Refinance

 When shopping for a mortgage, the main factor to influence your decision should be the interest rate. It is not as simple as finding a mortgage company and getting a quote. There are hundreds of programs and many options to these programs that will affect your decision. Be sure to check the APR of your quoted rate, which will calculate included fees. With the many aspects that should be considered in a mortgage refinancing, the most important aspects pressuring the economic feasibility of refinancing are:

  • The refinancing costs--how long will it take to recover the costs?
  • The actual spread between current mortgage rates and the contractual rate on existing mortgages--most experts advise a 2-3 percent difference to make it worthwhile.
  • The expected holding period of the new mortgage (if refinancing action is taken) should be long enough to recoup refinancing costs.
  • The tax implications of refinancing--lower rates result in lost tax benefits. How this affects you depends on your tax bracket.
  • The opportunity rate of return available on current risk-free investments--would the money you spend on costs make more money somewhere else?

When shopping for a refinance program, you need to consider rates, fees (such as credit, appraisal, and document preparation fees), and points. One point is equal to 1% of your loan amount. You also need to consider the closing costs, which include items such as title search fees, legal fees, and recording fees. When shopping for rates, make sure you are comparing apples to apples. Be sure to ask for the APR (Annual Percentage Rate).

The risk involved in refinancing an existing mortgage is nearly non-existent. If you think you'll save money by refinancing, now is a good time to act. Our lenders are in top form to compete for your business. Competition is what they depend on. They are waiting to offer you the best refinance rate possible. This means lower refinance rates for you! The best just got better because this service is absolutely free and easy to apply. When an application is filled out, it starts the whole financial process designed for you, the borrower.

                                                                                   

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