Home Mortgage Loan Refinancing Online - 3 Tips On Refinancing
Your Home
When refinancing your home, it's helpful to know a few things
about refinancing. When you refinance, you usually pay off the
old loan and sign for a new loan, whether you are refinancing
your 1st mortgage, second mortgage or home equity loan. The
expense that comes in to play when refinancing are the new
closing costs and points charge for getting a new loan.
How much can you expect in closing costs for a refinance?
Usually between 3-6% of the total loan amount. So, for a loan
amount of $150,000, you can expect to pay around $7 in fees.
Usually, a company that will say that have no closing costs,
will also charge a higher interest rate to compensate. The
mortgage broker has to make money somehow, they will either
charge a higher interest rate or charge higher closing costs.
The best way to compare refinance lenders is to analyze all of
the expenses.
Should I pay down points on my loan? If you plan to stay in your
home for more than 3 years, it may be smart for you to consider
paying down points on the loan which reduces your interest rate.
That pays off if you plan to stay in your home for a while, but
if you plan to sell the home soon, you may lose more money
paying down the points on the loan.
How can I know if I should refinance or not? If you are
interested in finding out whether it would save you money in the
long run to refinance with the current interest rate, there are
financial calculators online that can help you determine if you
would save money refinancing your house or not.
To view our list of recommended refinance mortgage companies
online or to use a refi- calculator, please visit this page: http://www.abclo
anguide.com/refinance.shtml