Chances are you bought your home when the mortgage rates were higher than they are today. Because mortgage rates are typically lower today than in years past, it may be wise to refinance your mortgage. Below are factors you should consider if you are thinking about refinancing your mortgage and what you can do to get the best deal.
Who Should Refinance
Refinancing isn’t the best financial move for everyone. Refinancing, as a general rule, is worth it only if the current interest rate on your mortgage is at least a couple percentage points higher than the normal market rate. But you should also know that individual circumstances need to be considered before making the decision to refinance. If you do decide to refinance your mortgage, experts say it could take at least three years to see a full return given the costs of refinancing.
The Cost of Refinancing
As you talk to lenders about your decision to refinance, pay close attention to the costs associated with refinancing your mortgage. Once you understand how much it will be to refinance and how much your new mortgage payment would be if you refinanced, you can quickly find out if the decision to refinance is worth it. Some of the costs often associated with refinancing can include:
- Application Fee
- Appraisal Fee
- Survey Costs
- Lenders Attorney's Review Fee
- Home Inspection Fee
- Accounting Professionals
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