Interest Rates are Reduced Should We Refinance Our Mortgage Loan?

Whenever interest rates decrease by 2 percent or more, people like to know if it is a good time to refinance their residence. Let me provide some basic advice that answers the two most common questions with regards to refinancing your home mortgage loan.

Should I refinance my home loan or not? Are you going to be residing in the home for awhile? It doesn't make sense to refinance your mortgage if you plan on moving in the near future, it's more advantageous if you plan on residing in the house for some time. Look at it in this way...

So suppose you would like to save $200 a month by reducing the payment per month and refinance the loan. The cost of the loan which includes title fees and closing costs comes to $3000 It would take fifteen months, just about a year and a half to break even. It would not be worth it to refinance if you decided to move before the fifteen months were up. You'd be shelling out more for the home loan as opposed to saving money.

What if I don't have money to cover closing costs how can I refinance? FHA Loans won't enable you to roll your closing cost service fees into the mortgage loan, however, if you get a conventional loan you are able to. That saves your out of pocket costs. You should check to see if you qualify for a conventional loan, a good loan representative should do all they can to help you find a income source for closing costs.

These are the two main concerns on householder's minds about re-financing their property, sometimes refinancing might not be the best option. Home mortgages are a serious matter, this is simply the tip of the iceberg for a more in depth explanation or if you have any questions about refinance mortgage rates in the Edmonton, Alberta, Canada area please visit our site.