When refinancing your mortgage, you will want to understand:
Each person has a unique situation – current interest rate, length of time spent
in house, how much more time you intend to stay in your house, credit rating,
etc... Different loan features will meet the different needs of each household.
The type of refinancing you receive depends on your financial goals.
If you aren’t sure about the best approach for your situation, you should
consider talking to an independent financial advisor who may be able to suggest
different strategies…. (Click
here to learn more about financial advisors.)
The main factors you will need to evaluate when considering home mortgage
Of the variables listed above, the following are the ones that will help you
determine the right loan for your situation:
These can be tricky questions to answer – particularly when retirement planning
and your age are considered. Your needs may evolve over the next few years.
The length of time you intend to stay in the house can help you determine
whether refinancing a home is a good fit for your situation. For example, if you
intend to move in the near future, refinancing (and the upfront closing costs to
refinance home mortgage loans) may not be a good strategy for you. On the other
hand, if you believe that you will remain in your house for a long time, then
refinancing may be a great option and paying points up front could offer great
cost savings of a lower interest rate over the long term.
When considering refinancing a home, it is also recommended that you ‘shop
around’. Find at least three offers to make sure that you get the best loan
terms and aren’t paying too much in closing costs. (Click
here to get competitive quotes from multiple loan lenders.)
Finally – if you are 62 years old and are planning to live in your home for many
more years, then you may want to consider a Reverse Mortgage (Click
here to learn more about reverse mortgages.)