The Pros and Cons of a Refinance Home Mortgage

Jul 17, 2013

There are many reasons that it may make sense for you to refinance. Of course the most popular reason people go through the process is to save money on their monthly mortgage payment. If you’re able to get a lower interest rate then you may end up saving a significant amount on each monthly payment and pay significantly less over the course of your loan. Another advantage is the possibility of rolling your second mortgage into your refinance, which leaves you with just one monthly payment instead of two. These are both strong reasons that make it worth your while if the situation is right.

 

Of course it’s not the right time for everyone to invest in a refinance home mortgage . If you’re close to paying your loan off, then the fees associated with a refinance may be more than you’ll end up saving. If you’ve had poor credit but are in the process of improving it, then you may find that you’ll get a better interest rate if you wait a few years. Those who own more on their homes than it’s worth, otherwise known as owning an upside down mortgage, will likely not find a lender willing to work with them.

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