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  1. Mortgage Refinance Calculator - Financial Calculators

    This calculator will help you in determining whether you should refinance your current mortgage at lower interest or not.

    http://www.realtor.com/home-finance/financial-calculators/mortgage-refinancing-calculator.aspx

  2. Should You Refinance? Here’s How to Tell If It Makes Sense ...

    Making your mortgage refinancing easy ... There’s a lot more to refinancing than plugging loan terms into a mortgage calculator to figure out how much you could ...

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  3. When Should You Refinance? - EzineArticles Submission ...

    Depending on your situation and time, refinancing can have different outcome than what you desired. Some people wait for interest rate to drop, ans some ...

    http://ezinearticles.com/?When-Should-You-Refinance?&id=1403173

  4. When Should You Refinance : Mortgage Refinancing Online

    When Should You Refinance When hit with bankruptcy individuals tend to panic and they do not think straight anymore. The do not realize that there are ways to ...

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  5. When to refinance your mortgage - Mortgage Rates Credit Cards ...

    As mortgage rates plunge, it becomes more tempting to refinance. Find out if such a move makes sense for you.

    http://www.bankrate.com/finance/mortgages/when-to-refinance-your-mortgage-1.aspx

  6. When should you refinance your mortgage - The Q&A wiki

    If you are considering refinancing your home loan, you'll find that the process reminds you of what you went through in obtaining the original mortgage. That's ...

    http://wiki.answers.com/Q/When_should_you_refinance_your_mortgage

  7. Should You Refinance? - Mortgages - Netplaces

    There used to be a rule of thumb that you shouldn't refinance until rates had dropped a full 2 percentage points

    http://www.netplaces.com/mortgages/refinancing-how-to-do-it-right/should-you-refinance.htm

  8. Refinance Mortgage - How much to save by refinancing

    Check out refinance mortgage tips, why and when to refinance, refinancing faq and calculators and know if bad credit refinance is available.

    http://www.mortgagefit.com/refinance.html

  9. Refinance calculator: Should I refinance? - MSN Money

    Our mortgage refinance calculator will help you determine if you should refinance now. Refinance might make sense and this calculator can help you analyze.

    http://money.msn.com/home-loans/refinance-calculator.aspx

  10. Should you Refinance - Reed Mortgage Corporation

    Should you Refinance? When interest rates are low or declining, many homeowners consider the option of refinancing their current mortgage. In general, there are 4 ...

    http://www.reedmc.com/Refinance.htm

  11. Should You Refinance – SimplyLending Mortgage - Home Loans ...

    Here At Simplylending We Compare Low Refinance Rate Quotes. We compare refinance rates from hundreds of lenders. Refinance Calculator, News and Mortgage Rates.

    http://simplylending.com/?p=134

  12. Should You Refinance? The Rule of Thumb Has Changed - CBS News

    If you gather 'round the water cooler long enough, you'll hear a lot about two things: sex and mortgages. Everyone talks about who they're dating and when ...

    http://www.cbsnews.com/8301-505145_162-37140339/should-you-refinance-the-rule-of-thumb-has-changed/

SHOULD YOU REFINANCE

Should You Refinance?

 

There are a number of considerations that go into a decision to refinance a home mortgage, and the major ones are discussed below.

 

Does the lower interest rate you can get at this time make financial sense? The old rule of thumb was called the 2% rule which stated that if the new interest rate is 2% less than the old interest rate, then it is worth it to refinance. This rule is really too broad and should be disregarded, however.

 

 

Rather, first of all you need to figure out how long you are likely to live in the home. If you think it is likely that you will be moving in a year or so, forget about refinancing your mortgage. On the other hand if it is probable that you will be staying in the home for two years or longer, then refinancing could make sense. Another assumption here is that you have enough equity in the home such that you will qualify for a refinance. If you have been in the house for a number of years this is probably the case. Remember, however, that home values have gone down in most areas of the U.S. over the past couple of years. You need to be able to borrow enough money to pay off the balance of your old mortgage, and you will most likely be able to borrow only about 80% of the current value of the home.

 

At this point you need to figure out how many months it will take to pay off the costs of obtaining a new loan. You can make a rough estimate of this by calling up a mortgage broker and asking him or her how much it will cost to refinance your mortgage. If you want an exact figure you will need to submit a loan application to a lender and get a Good Faith Estimate. Once you have a handle on how much it will cost to refinance, then you need to know what your monthly payments will be under the new loan terms. Subtract this monthly payment figure from what your current mortgage payment is, and you will know how much you will be saving each month. Divide this figure (projected monthly savings) into the total loan cost, and you will then obtain the number of months it will take to pay off the costs of obtaining your new loan. This is called the break even period. In most cases if that figure is 24 months or less, then refinancing will probably make sense, assuming you will stay in the house that long.

 

This is the basic calculation when considering the refinance of a mortgage. There are other factors as well that could justify refinancing, such as changing from an adjustable mortgage to a fixed rate mortgage, changing from 30 year to 15 year payoff to pay off the mortgage faster, or to withdraw equity to pay off high interest debt like credit cards, for example.

 

Please don’t hesitate to give Kathy Allen a call at Mobile: (719) 661-9863 Office: (719) 234-1182. Email Me.

 

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  • Breaking refinance bottleneck would do a world of good - Chicago Tribune
    Breaking refinance bottleneck would do a world of goodChicago TribuneIn fact, it's pretty tough to get approved for a refinance these days. Lenders are questioning every single line item on the application, from the appraisal to your credit history. And watch out if you're self-employed or have a small passive ...and more »
  • On homes and real estate: Holding a mortgage - Chicago Daily Herald
    On homes and real estate: Holding a mortgageChicago Daily HeraldTo protect yourself, take the same precautions institutional lenders do. First, make sure a decent down payment is involved, or equity if we're talking about a refinance. You want the borrower to have sufficient money tied up in the property so there's ...
  • Biz Brain: Mapping out a refinancing strategy that pays - The Star-Ledger - NJ.com
    Biz Brain: Mapping out a refinancing strategy that paysThe Star-Ledger - NJ.comIs it worth it to refinance, or should we forget about it? We may move in five or six years. A. The Brain recently refinanced, and closing costs were nowhere near $8000. You may want to shop around. When deciding when to refinance, you need to ...
  • A Window of Opportunity by California Mortgage Expert - SBWire (press release)
    A Window of Opportunity by California Mortgage ExpertSBWire (press release)But before you sign on the dotted line, there are a few things you should know about the way refinancing works so you don't make a mistake that could wind up costing you big time. "With refinancing as popular as it is right now, California residents ...
  • Buffett may have one eye on newspapers' role and other on bottom line - Omaha World-Herald
    Buffett may have one eye on newspapers' role and other on bottom lineOmaha World-HeraldI would trust him to have made a really good deal. “Sometimes he does things and you don't figure out why until later.” Whatever he's doing, Buffett's newspaper collection is growing. Berkshire would pay $140 million and make $445 million in loans to ...and more »
  • Obama and Reno Family Discuss 'Real Money' - KOLO
    PoliticoObama and Reno Family Discuss 'Real Money'KOLOComments are posted from viewers like you and do not always reflect the views of this station. by Jill Location: Sparks on May 12, 2012 at 08:35 AM He can't handle a teleprompter - do you think he knows anything about refinancing!President Obama touts refinancing in RenoPoliticoPresident Obama holds private chat with Reno homeownersReno Gazette JournalObama presses Congress to ease way for millions of homeowners to refinanceExaminer.comLas Vegas Review-Journal -KTUL (blog) -Daily Mailall 599 news articles »
  • Bank of the West Sees Rise in Mortgage Applications from HARP 2.0 - MarketWatch (press release)
    Bank of the West Sees Rise in Mortgage Applications from HARP 2.0MarketWatch (press release)"We are anticipating that one out of every five new borrowers will be a homeowner seeking a HARP 2.0 refinance loan this year," said Karen Mayfield, Bank of the West's National Sales Manager for the Mortgage Banking Division. "This program is providing ...and more »
  • More Than 95 Percent Of Refinancing Borrowers Choose Fixed-Rate Mortgages - Sacramento Bee
    Daily MailMore Than 95 Percent Of Refinancing Borrowers Choose Fixed-Rate MortgagesSacramento BeeIf you see an objectionable comment, click the "Report Abuse" link below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned.BMO: Customers Who Have Chosen 25-Year or Less Amortization Mortgage in 2012 ...MarketWatch (press release)all 69 news articles »
  • An Upbeat View From JPMorgan's Private Bank - Barron's
    An Upbeat View From JPMorgan's Private BankBarron'sAs a result, the next five or six years will see hundreds of billions of real-estate debt coming due, and owners who can't refinance will be forced to liquidate. There comes a time when pricing is dictated not just by value, but by timing, Duffy says, ...
  • The Truth About Mortgage Refinancing Revealed by Pennsylvania Mortgage Expert - SBWire (press release)
    The Truth About Mortgage Refinancing Revealed by Pennsylvania Mortgage ExpertSBWire (press release)But before you sign on the dotted line, there are a few things you should know about the way refinancing works so you don't make a mistake that could wind up costing you big time. "With refinancing as popular as it is right now, Pennsylvania residents ...and more »

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