Welcome to Mortgage Refinancing Guide
Quality Home Mortgage Refinancing Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
from: How to tell it's the right time to refinanceDeciding to refinance your mortgage can be a tricky task, as you can never be sure if the rates are going to drop further and if you wait, those rates just may inflate which means you missed out on a great deal. The financial industry is a best guess beast which makes it difficult for even experienced financiers to know exactly where the market it heading. So, how can you tell what the right time is to refinance is?
One rule of thumb is that if your current interest rate is not more than two points above the new rate, then refinancing will simply not save you enough money to justify the process. You will have to pay a new closing cost along with other fees such as appraisals and the amount of time it will take to pay that off may not be worth the refinance in the long run. If you plan to move soon then you may not be in your home long enough in order to pay off the expenses that it took to refinance. If this is the case, then it may not be the time to refinance.
There are other instances where refinancing is just simply not wise even if the interest rates are going down at a record rate. A bad credit score may result in not receiving the deal that you are hoping for. In fact, a bad credit score can even carry penalties and additional fees such as the need to purchase mortgage insurance.
If you happen to have good credit, a stable job, and a good history of payment you may want to consider refinancing based on where you live. Sure, interest rates are at an all time low, but if you live in a declining market such as Florida or California, the cost of refinancing will carry heavy fees, such as a hefty down payment. While this scenario may not be accurate for all parts of Florida, California, or other areas facing severe housing problems, it is definitely something to take into consideration.
Generally it is the right time to refinance if you live in an urban area that is seeing significant financial prosperity. If your credit score is over 650 or if your current mortgage, either a fixed rate or an adjustable rate is over 6 percent then now is the time to look into refinancing. Ultimately, the decision is yours. It would be wise to discuss all of your options with your lender or financial advisor before deciding.
Refinancing your mortgage just may save you hundreds of dollars each month, however if you do not act wisely and weigh both the positives and negatives, refinancing will end up costing you more money.
Quality Home Mortgage Refinancing Specific links
Quality Home Mortgage Refinancing News
European Strife Gives America Life - Seeking Alpha
European Strife Gives America Life Seeking Alpha Last week we told you that European strife was giving life to American mortgage refinancing activity. This week, even lower mortgage rates extended the streak of American benefit from the distress of Europe, with refinancing activity marking its third ... |
Freddie Mac Repurchase Policy Is MBS Investors' Latest Worry - Wall Street Journal
Freddie Mac Repurchase Policy Is MBS Investors' Latest Worry Wall Street Journal ... selling the loans into mortgage bond trusts. The loans include some made under the government's Home Affordable Refinance Program, an initiative to encourage banks to refinance borrowers that don't meet some traditional underwriting guidelines. |
Candlelight Dinners And 9 Other Ways To Save By Spending More - Business Insider
 Business Insider | Candlelight Dinners And 9 Other Ways To Save By Spending More Business Insider Freddie Mac said the 30-year loan rate had dipped to 3.79 percent as of May 18, the lowest since long-term mortgages began in the 1950s. “Record-low mortgage rates and low home prices are making home buying more attractive to Americans, and refinancing ... |
Low rates push demand for new homes - WRAL.com (blog)
Low rates push demand for new homes WRAL.com (blog) The overall refinance percentage has risen again, now accounting for 76.6 percent of all mortgage transactions, which is up from 74.9 percent the prior week. Purchases dropped for the second week in a row, declining 3 percent for the week. New home ... |
Fortress Seeks Servicing Rights From $4 Trillion Sale: Mortgages - BusinessWeek
Fortress Seeks Servicing Rights From $4 Trillion Sale: Mortgages BusinessWeek Fortress's acquisitions of Aurora and ResCap outmaneuvered rival non-bank mortgage servicers vying for mortgage pools that decline in revenue like a “melting ice cube” as borrowers refinance or sell their homes, Coffey said. |