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People refinance their homes for a variety of reasons. The most important questions you need to ask is:
"What is the goal you seek by refinancing?"
Here are the top 5 reasons people refinance:
Lower the interest rate (and monthly payment)
Shorten the term of the loan to a 20-yr or 15-year term
Eliminate paying PMI each month
Take cash out for expenses and other bills (reorganize your budget)
Change the mortgage type (move from a Fixed Rate loan to an Adjustable Rate Mortgage)
Your goal may be a combination of these.
There are costs involved when you refinance. There are 3 ways to cover the closing costs which include items such as title insurance, escrow/settlement, recording fee, loan fee or points if applicable and other items.
Finance the closing costs by adding these to your loan amount
Finance your closing costs by asking the lender to pay for them by increasing the interest rate
Pay closing costs in cash
Most Important:
Determine how you benefit from Refinancing
The only way to know if refinancing meets your needs is to spend 30-minutes or less in a personal review. For your personal analysis, please gather the following:
Copy of your current mortgage statement showing the payment details and balance
Copy of any other mortgage statements such as a Home Equity credit line statement
List (approximately) what you pay for property taxes, home insurance and any homeowner dues
List your best Guestimate of your home's current value
Write down the GOAL(s) you want to accomplish
Now call or e-mail me to arrange a convenient time to review this. If you can, fax the information to my TEAM fax at 503-327-4005.
Thanks- Sandi
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