Refinance questions you should ask yourself
Before you even consider a refinance, ask yourself this
fundamental question: “Why do I need it?” “Many times, people
take out a new, larger loan to pay off credit cards, automobiles
or even to purchase another home,” says Norm Bour, host of the
nationally syndicated US radio program The Real Estate
Finance Show, and an experienced mortgage lender “Sometimes
they need the money to do home improvements or renovations” If,
however, you want to lower your current loan payments or switch
to a different type of loan, you must calculate the benefits
before going the re-fi route “If someone is going from a fixed
loan to another fixed loan, my general benchmark is to see a 1%
reduction of interest rates to justify it,” says Bour, who also
teaches money-management classes in Southern California
“Sometimes the borrower goes from a fixed-rate loan to an
adjustable to lower his payments Sometimes he does just the
opposite-maybe to get away from interest-rate volatility These
are very personal decisions, specific to each individual client”
You may already know-or suspect-that you will not live in your
current home beyond a certain timeframe (perhaps 5 years) If
this is the case, why would you even consider a 30-year loan?
“Sometimes, an adjustable-rate loan or a ‘hybrid’-say, a 5-year
fixed, then converting to an adjustable-makes the most sense,”
Bour says Find out more here: Expert
Mortgage Advice
Other resources:
*
Re-mortgage
*
Advice
*
Expert Dog Training
*
numerous conditions
Tags | decisions, Finance, fundamental, improvements, monetary, mortgage, payments, personal, question, rate, renovations, volatility
Comments are closed.