Given the current state of the economy, many homeowners are seeking to refinance their home mortgage to minimize interest and other fees. While this can be true, it’s important for homeowners to be aware of some key points to ensure that it makes sense to refinance their mortgage:
1. Ensure that refinancing is the right option for your individual situation. Obviously, the first thing you need to before refinancing your mortgage is to determine if it’s actually the right course of action for you. Make sure you explore all the options, such as car loans or separate home equity loans to make sure you are making the very best decision.
2. Be familiar with the interest rate cycle. Interest rates consistently fluctuate over time. In order to make sure that refinancing your mortgage works out, you need to refinance when the market interest rates fall below the rate in which you are currently paying minus loan switching fees.
3. Understand all of the costs involved with a home refinance. There are many fees involved, including loan application fees, closing costs and broker fees.
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