Tuesday, March 14, 2006

Best Time To Refinance

Todays Topic: Best Time To Refinance

Today's National Averages:
30-yr Fixed 5.81% 6.01% 15-yr Fixed 5.46% 5.79% 5/1 ARM 5.54% 6.8%

Best Time To Refinance Your Home Loan
You bought your home during the housing boom and now after a year or two into your new home you're considering refinancing. The question is, "Is now a good time to refinance your home loan?"

Any lender or broker will likely say sure let's look into it and see how much loan you can afford! But before you even consider talking to a lender you'll want to get some questions answered for yourself.

1. Are you seeking to lower your monthly payments?
2. Do you want to consolidate debt?
3. Do You need cash for large purchases?
4. Are you seeking to adjust your interest deduction expense for tax purposes?

Whether to refinance your home loan depends largely on your immediate and long range financial goals. Once you've answered these questions you'll have a better idea of the actual need you have to refinance. If your needs prove practical you'll then want to start shopping the lowest rates possible. Check local mortgage rates and get three competitive rate quotes. Compare the saving using a mortgage payment calculator. Choose the rate and loan program that's right for you.

Match rates with the more desirable loan program. Many incline toward a 15-year Fixed Cash Out Refinance program. This gives them cash they can pocket to grow their income with a view to refinancing again upon reaching desired income level and the option of choosing a longer or shorter-term loan.