Is a Refinance right for you?
If you are considering a refinance, one of the most important questions is…
Why am I contemplating a Refinance?
Most of the time people refinance for one of two reasons, either they want to cash out the equity they have in their home or they want to lower their mortgage interest rate. If they are lucky they could refinance, take cash out (if needed) and lower their rate.
It is very important to make sure that if you are considering a refinance that you factor in the closing costs. Determine whether or not you can recoup the costs in an adequate amount of time. If you need help determining what the costs of refinancing would be or determining the time it would take you to recoup the costs please call Christy today.
If you do plan to take the equity out of your home and use it, be sure to use it wisely. If you refinance to remodel your home you are essentially making improvements that increase the value of your home and hopefully your are also increasing your quality of life. If you are taking the cash out to pay off debt such as credit cards, be sure to take a look at your spending habits before taking the equity out of your house. You will want to make sure that you won’t re-accumulate that same type of debt.
One other reason to refinance…
Depending on the type of mortgage you have, you may want to consider a refinance even if it doesn’t lower your payment or rate. If you are in an adjustable rate mortgage you could get put into a bind when your adjustment period begins. Refinancing into a fixed mortgage can definitely provide you peace of mind. Be sure to consider all of your options when looking into a refinance and contact us today if you have any questions.
