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Should You Refinance Your Mortgage if Interest Rates Drop?
Mortgage refinancing is when you take a mortgage of a certain interest rate and term length, and change it for a different interest rate and term. If you are looking to refinance your home loan it is usually done when rates have dropped considerably therefore making it advantageous to do so. When I say considerably it usually means a drop of at least 1% from what you're paying now.
If you have an adjustable rate mortgage and interest rates drop, then locking in to a fixed rate loan for a set term is probably a wise decision. This is especially true if rates are on the rise!
If you are looking to refinance because you need to pay down other debts, try something else, like a debt consolidation loan. The only time you should refinance for this reason is if you are planning on staying in your home for a few years, and the current mortgage rates are lower than the rates you are paying on your debts as well as your current home loan rate.
If mortgage refinancing is something you would like to consider then be sure to ask the lender about the amortization schedule. If it was originally 25 years and you have paid on it for 10 years then you don't want to start over again at 25 years. The amortization should remain at 15 years. You will end up paying out thousands less in the long run.
Refinancing when interest rates drop could save you thousands of dollars, but it isn't the best option for everyone. Discuss your options with a professional and discover what is best for you!
Chris Rodriguez is the author/publisher of http://www.online-finances.com. Discover helpful information on mortgages, car loans, student loans, consolidation loans, and much more. Check out our website before you get your next loan or visit just to get tips and valuable information on a particular financial subject.
MORE RESOURCES updated Sat. June / 03 / 2023
Today's Mortgage, Refinance Rates: June 1, 2023 | Rates Finally Drop Business Insider
The Great Pandemic Mortgage Refinance Boom - Liberty Street Economics Liberty Street Economics -
Compare Today’s Refinance Rates | U.S. U.S News & World Report Money
What is mortgage refinancing and how does it work? Yahoo Finance
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UK mortgage borrowers face painful refinancing, warns think-tank Financial Times
Fixed rate cliff spurs record mortgage refinancing MacroBusiness
3 Mistakes You Might Make if You Do a Cash-Out Refinance in 2023 The Motley Fool
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The Pros And Cons Of Debt Consolidation Vs. Debt Settlement Zing! Blog by Quicken Loans
May 2023's Median Price of Wake County Real Estate Drops slightly ... - Wake County Government (.gov)
May 2023's Median Price of Wake County Real Estate Drops slightly ... Wake County Government (.gov)
Struggling mortgage holders furiously refinance MacroBusiness
Refinancing your mortgage could save you thousands — here are some of the best refinance lenders - CNBC
Refinancing your mortgage could save you thousands — here are some of the best refinance lenders CNBC
2 Times to Consider an Adjustable-Rate Mortgage The Motley Fool
Would You Sign a Mortgage at Over 5.5%? 7 in 10 Home Buyers ... The Motley Fool
Is a Green Mortgage Right for You? The Motley Fool
How does mortgage refinancing work? CBS News
Should I Refinance My Mortgage? - Buy Side from WSJ The Wall Street Journal
Today's Mortgage, Refinance Rates: May 29, 2023 | Rates Still High Business Insider
Here’s how sharply mortgage refinancing has dropped off Yahoo Finance
Today’s 30-year mortgage refinance rates hit lowest levels in 15 days | Oct. 28, 2022 - Fox Business
CFPB Launches Effort to Spur New Opportunities for Homeowners ... - Consumer Financial Protection Bureau
CFPB Launches Effort to Spur New Opportunities for Homeowners ... Consumer Financial Protection Bureau
Analysis | It Will Pay to Wait to Refinance Your UK Mortgage The Washington Post
Why Older People Can’t Get New Mortgages The New York Times
VA refinance rates - current VA loan refinance rates today Business Insider
Small Business Loan Refinance Bankrate.com
Today's Mortgage, Refinance Rates: May 24, 2023 | Rates Spike Business Insider
11 Home Refinance Loans For Bad Credit (June 2023) BadCredit.org
Current 15-year refinance rates today Business Insider
Refinance Closing: An Overview Zing! Blog by Quicken Loans