If you are weighing the decision on whether or not you should refinance your current mortgage, you need to decide what your ultimate financial goal you are attempting to achieve. Refinancing might be a tempting choice however one has to keep in mind the fact that it doesn’t pay off your loan debt it merely restructures the debt. Dean Graziosi assists you with information about refinancing and the various types of mortgage loans. Restructuring your debt happens basically in two parts and one is to lower the actual interest rate on your mortgage loan and the second is to obtain a different loan term than your current mortgage has.
The main reason many choose refinancing is the ability to extend the loan back out 30 years to reduce their monthly payment. Another common reason is when someone has a first mortgage as well as a home equity loan. They may want to combine both of these mortgages to have one fixed rate mortgage. Many times a homeowner is thinking of refinancing because they have adjustable rate mortgages and are looking for security and want to move to a fixed rate mortgage.
Once you have decided what your reasons are for wanting to refinance your mortgage you also have to decide whether it is the right time to do so. A homeowner will need to be able to look at what their savings costs based upon how long they believe they will be living in their home. The costs of refinancing may or may not be worth going through it. Find out more information on whether you should be refinancing your current mortgage loan from Mr. Graziosi. Remember that you need to figure in miscellaneous fees when you are deciding if you should refinance. The fees you will need to factor in are items such as taxes and insurance along with the prorated interest and even possibly homeowner association dues where applicable. Check your mortgage terms because your current lender may also apply a prepayment penalty if that is also included in their current mortgage terms. Many times a homeowner will see determine that even if they refinanced it will take a long time even with a new lower mortgage payment to recoup the closing costs of a new mortgage.
Although it might be helpful to a homeowner with more upfront immediate cash it is important to realize that it could also take a bite out of their savings. Dean Graziosi, a real estate investor, helps you to learn more about refinancing and simply by doing a little “crunching of the numbers” will basically let you know whether it is the right time or not to refinance your current mortgage loan