You're subscribed!
When to Consider Refinancing
Here's what you need to know about whether refinancing your home is a smart move to make.
The best time to refinance depends on two factors: mortgage rates and how long you plan to stay in the home.
- If today’s rates are at least 2 points lower than your existing rate, you should consider refinancing.
- Refinancing a mortgage involves upfront costs, similar to those you paid for your original mortgage: title search, property appraisal, legal services and points. If you sell the home in less than five years, you risk losing this money and negate any potential savings from refinancing.
When you're ready to refinance, do your research and shop around.
- Find out if your lender charges a penalty fee for getting out of your original mortgage. Review your prepayment option carefully.
- Negotiate lower fees or better terms with your original lender; they will want to keep your business. In the meantime, talk to other lenders and see what they're willing to offer.
- Consult a mortgage adviser to help you evaluate your situation.
Refinancing has several advantages, including:
- Lower rate = lower monthly mortgage payments
- Getting out of an adjustable rate mortgage and locking into a fixed-rate mortgage
- Cashing in on the equity you’ve built up in your home
Next Up
When They Say No: Finding Mortgage Money
Lending guidelines have tightened, but getting a loan is still possible.
When Should I Make Major Home Updates?
Before taking on major remodeling projects, you may want to give yourself -- and your wallet -- time to recover from the homebuying process.
Consider Buyers’ Motivations When Making an Offer
Put yourself in a position of strength in multiple offer situations.
What Buyers Should Look for When Downsizing
Use these pointers to make a smooth transition into a smaller space.
Take These Pointers When Buying a Second Home
Brush up on location, lifestyle and finances while searching for your retreat.
How to Take Title When Buying With Friends
When buying a house with a friend, it's important to choose a joint tenancy title that protects you from the unforeseen. Here are your best options.
What to Do When Your Mortgage Rate is Adjusted
There's no need to panic when your mortgage rate is adjusted. Here's why.
What to Expect When You Live by the Water
Living on or near this natural setting brings its own set of challenges.
10 Things I Wish I Knew When I Moved
These 10 things may slip your mind when planning a move.
Buyers: Don’t Freak Out When You Get Bad Inspection Results
What’s a homebuyer to do if your home inspection has bad results? Drama-Free Real Estate expert Tara-Nicholle Nelson shares her tips and tools.
