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5 Things to Think About When Considering Refinancing

By: Huntsville Real Estate Expert Mike Manosky On August 13, 2015

Interest rates remain extremely low making this a great time to think about refinancing your home. Here are a few tips for refinancing that will help you in making an informed decision.

refinancing

  1. If you have an FHA loan you need to get rid of the mortgage insurance as quickly as you possibly can. Mortgage insurance on FHA loans can add up over the years more than you realize. You will need to refinance your FHA loan into a different mortgage in order to get rid of the mortgage insurance if your loan is for 30 years and you put less than 10% down.
  2. Be careful not to refinance too often just because interest rates have gotten lower. It is worth it to refinance for just half a percent these days but don’t keep going after lower and lower rates. It is best not to refinance more than two to three times during the life of your loan.
  3. If you do decide to refinance your home loan, it is best to refinance for a shorter number of years. Refinancing a 30 year loan to another 30 year loan is essentially adding another 5 years to your payoff date. If you refinance try to refinance for 15 years if you can afford to do so.
  4. If you are planning to sell your home anytime soon it is not a good idea to refinance because you are going to have to pay closing costs and therefore will be losing money in the long run. Be sure to take into consideration your long term goals when you consider refinancing.
  5. Shop around for your new loan. Just because you have had a good rapport with your current mortgage company doesn’t mean you have to refinance with them. Do your part by shopping around for the best rate and take the one that saves you the most money.

Refinancing your home can be a great way to get ahead in life and to save some money along the way.   If you want to refinance I would suggest that you get online to check out what rates are being offered these days and to get the ball rolling!

Information provided by Huntsville Realtor Mike Manosky!

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