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Current Refinance Rates
Should you refinance your home mortgage? That's a question many
homeowners ask when lower current refinance rates become available. But, how do you
decide if refinancing makes sense in your particular case? The answer depends on
many factors, including your tax bracket, the length of time you plan to stay in
your home, and the additional costs and charges you must pay for the
refinancing. Refinancing your home costs money. There are just as many costs as when you
purchased, zero cost mortgages involve a higher than market rate that will cost
you in the long run. The most common reason to 'refinance is to lower your interest
rate. Conventional wisdom is to lower two points, but even one point can make it
worthwhile.
This can vary depending on what
current refinance rates you want to refinance
at. If it is lower than market rate, you may have to pay discount points. When
refinancing, be sure to look at different programs. Often, it is a good time to
get a shorter term loan with a lower rate that will knock years off the mortgage
with little or no increase in payment. Some homeowners don't consider refinancing their mortgage because they fear that it may be too much of an aggravation for the money they may save. Other homeowners simply get into the habit of paying their mortgage payment every month and simply do not consider refinancing.
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