House Refinancing Should I Do It Now?
Man, at the moment I am sooooo tempted to look at house refinancing so that I can lower my mortgage rate. With interest rates are dropping like a stone, am I being a fool to consider remortgaging at attempting to take advantage of the lower rate. I don’t know if my credit history will stand up the scrutiny of the mortgage company, especially as I’m gonna be trying to remortgage an apartment and not a house, so there’s issues with leases as opposed to owning the house and the land outright. Do you think this will matter when I go for the application?
What would be the difference, given the state of the housing market around here, I could just as well buy a different house, rather than trying to refinance my house, bearing in mind what I said above about having bad credit.
I read somewhere that if you are attempting house refinancing, you should look at the new mortgage closing costs and the old mortgage early redemption / closing costs, then work out what you will save in interest over a time period. So basically, if my costs amounted to $2000, but I was saving $200 a month on the new rate, then it would basically take me 10 months to recoup. That is what they called the breakeven.
10 months, that’s no time. I don’t plan on moving for at least 2 years so that would be definitely worth finding a mortgage broker to work with to get a deal like that, especially if they can get me a no closing cost refinance deal. The gamble is moving from a fixed rate deal to one which is based on the interest rate, whether it goes up or down. Since the economy doesn’t look like it’s gonna get any better in the short term, and as long as the costs are not that bad, I think house refinancing is definitely something I should think about doing now!
No related posts.