Wednesday, June 17, 2009

Should I Refinance My Mortgage?

We all know that we can reduce the interest rate or increase or increase the duration of the mortgage period through mortgage refinance. "Should I Refinance My Mortgage?" the question may have come in your mind quite a few times if you have a mortgage. Now before going for a refinance you should remember few things mentioned below.



* Is your mortgage older than one year? If it is not older than one year then you may be liable to pay prepayment penalty. So check out whether it is fruitful for you if you go for mortgage refinance even after the prepayment penalty.



* Are you getting better rates and terms after the mortgage refinance?



* Are you satisfied with the new rates and terms that you are getting after the mortgage refinance?



* Do you have a good credit score; at least more than 680? If you have a good credit score and you can lock a lower rate, then mortgage refinance can be really fruitful for you.



So whether you should refinance not depends upon the personal financial situation and the market condition. If you think that you want to refinance then you should contact with your mortgage lender and also go for a detailed market research. If you see that your present lender can provide you the best rates and terms then I think it is better to deal with your present lender as it will be helpful for both you and your lender to work together.



by Jack Mathew William

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