10.18.2011 / Should you Refinance?

For most people refinancing is a big decision. With mortgage interest rates remain low refinancing could be a smart move. However it is still a big decision. Before you dive in ask yourself these three questions to ensure it is the right choice for you.

"Before you dive in ask yourself three questions."

Why do I want to refinance?

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.

What’s my break-even point?

Before making the decision to refinance, you’ll want to determine your “break-event point” – the time it will take you to recoup refinancing expenses, such as closing costs, points and fees with your lower payment.   

How does my current mortgage stack up?

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

Posted at 09:43 AM | Permalink
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