Time to refinance your mortgage?

To refinance a mortgage means to replace an existing mortgage with a new one, usually at a lower rate and in some cases, a different payment schedule.

What this means to you is usually a lower monthly payment and a great deal of savings in interest!

Why should I refinance my mortgage?

There are many reasons why people refinance their mortgage.  Here are a few key points to consider:

• Convenience: Combining a first and second mortgage into one payment saves time and effort in trying to keep track of multiple lenders with different payment dates or "catches".  Debt consolidation may also allow you to take out a home equity line of credit since there is now only one lien against your property instead of two.

• Lower Payments: If the refinanced mortgage carries a lower interest rate, then usually your monthly payments will be lower allowing that extra cash to be used elsewhere or invested for your retirement!

• Tax-deductible Interest: In most cases, interest paid on your mortgage or home equity loan is tax-deductible^*, while interest on personal credit cards is not.  If you refinance your mortgage in order to pay off high interest credit card bills, you'll be able to lower your monthly payments AND deduct the interest on your taxes ^*!   (* Consult your tax advisor)

• Fixed payments:  You may want to have the certainty of fixed monthly payments in the event your current mortgage has an adjustable rate.  Refinance to a fixed-rate mortgage will give you more control over your cash flow and allow for better planning.

How do I refinance my mortgage?

There are many lenders available who can refinance your mortgage, however, you should be careful in any advertisement that seems too good to be true.  As with any mortgage, there are closing costs, application costs, fees, points, etc, which may show up unexpectedly and suddenly, the savings from the refinance are eaten away by these costs.

Always ask to see the fine print and ensure you fully understand all the costs involved in the refinance agreement to ensure that the savings you deserve go into your pocket and not the lenders!

Mortgage Tools & Calculators

This website is not affiliated in any way with AOL, however, they do offer excellent tools & calculators to help you make a more educated decision.  If you're interested in the using these refinance tools, click here and a new window will open bringing you to their mortgage refinance tools.

Click here for more information on mortgage refinance costs that you should keep in mind when speaking to your lender.

Click here for more information on things to keep in mind when deciding to Refinance your mortgage or loan.

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Disclaimer: All information provided on this page is meant for educational purposes and not intended as personal or professional advice.  Always consult a financial & tax advisor prior to making any refinance decision to determine how it will affect you.  ratingyourcompany.com is not responsible for any damages or loss incurred as a result of the information provided on this website.  Use at your own risk.

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