A mortgage refinance is very important, because the interest rates have been at histoic lowes for so long. Everyday, it seems I hear more and more that the interest rates will increase later this year, because the government has announced they will taper off the purchase of mortgage backed securities. This action will have a direct affect on mortgage rates.
The best mortgage advice I can give about a refinance, would be to ask yourself this question, “How long do I plan on having this mortgage?”
This is one of the most important questions, because the amount of costs you are paying for a refinance and the amount of interest you will save by lowering your rate can all be justifiyed by the amount of time you will have this mortgage.
If you are unsure on how long you will own the home, then figure out a minimum amount of years you plan on owning and base your number on the minimum. If you have a range of 7-10 years, then count on having the mortgage for 7 years and that’s it. It’s best to play it safe versus taking a gamble, because we all know life happens and you may not end up owning the home for the latter part of the range.
Once you have figured out how many years you plan on having the mortgage, then it’s time to figure out when the savings makes sense to refinance.
Here is a post that helps explain when a mortgage refinance makes sense:
Thank you for all the great posts from last year! I look forward to reading your blog, because they are always full of information that I can put to use. Thank you again, and God bless you in 2010.
Thank you. It’s comments like this that allows me to enjoy posting free mortgage advice for everyone.
Can you come back and continue posting. I miss your work!