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Should I refinance my existing loan now?

June 9th, 2005 · No Comments

Many factors come into play when making the decision to refinance your existing mortgage. You need to ask some important questions: How much lower should my interest rate be for refinancing to make sense?; Can I qualify for a lower rate?, How long will it take for me to recoup the costs of the loan?; and, What type of loan program is right for me? The following questions and answers were designed to help you make an informed decision, and more importantly, to help you know just which questions to ask your loan officer.

In the past, the decision to refinance was usually based on balancing the cost of refinancing with the possible savings in the form of a lower monthly payment. Now, lenders offer “no cost” or “low cost” loan packages that sound good on the surface, but you end up paying for it in the form of a higher interest rate. These programs were designed to eliminate or lower the out-of-pocket expenses previously associated with refinancing your home loan.

Category: Mortgage