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07.23.2009 / Should you really refinance?

For most people, refinancing is a big decision. Since mortgage interest rates remain low, refinancing your mortgage could be a smart move. Still, it's a big decision. Before you dive in, ask yourself these three questions to ensure it's the right choice for you.

1. Why do I want to refinance?

"Before you dive in, ask yourself three questions."

Here are some common reasons for refinancing:

  • Save money. If today's rates are lower than your current rate, you might enjoy instant savings with a lower monthly payment, plus save long-term on the total interest you will pay over the life of the loan.
  • Improve cash flow. You might be able to turn your home equity into cash for everything from debt consolidation to educational costs, a new car or unexpected expenses.
  • Change your mortgage term. You could shorten the term of your home loan to pay it off sooner. That could also save you money on your total interest paid.

2. What's my break-even point?

Before making the decision to refinance, you'll want to determine your "break-even point" - the time it will take to recoup refinancing costs, such as closing costs, points and fees.

3. How does my current mortgage stack up?

Review the rate, terms and conditions of your mortgage. Check for pre-payment penalties that would add to the cost of refinancing. Visit our Mortgage Center at firstnationalmc.com to apply, use calculators, learn about the mortgage process, check interest rates and more.

For more information on refinancing your existing home, call a First National Bank Mortgage Specialist at 402-602-5660 or 888-568-2200 or visit them online at firstnationalmc.com .

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