Five signs you may be ready to refinance – Yahoo! Homes

27 08 2012

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If youre on the fence about refinancing, check out these five signs it might be right for you…By Leslie Barrie | Yahoo! Homes – Thu, Aug 16, 2012 7:20

Good news: There are some signs to help you figure out if refinancing the process of paying off your existing mortgage with a new one is a smart idea for you. Just note: lenders usually require that you have at least 5 percent equity accumulated in your property to be eligible to refinance your mortgage, according to Fannie Mae, a government-sponsored national mortgage finance company. (I’d like to add…unless you are eligible for the HARP program- call me if you have more questions about this) – Are you eligible? Here are five more signs it may be time to refinance your mortgage.

Sign #1 – You Can Get a Lower Interest Rate

If you can snag an interest rate lower than what you currently have.And chances are, you can.”Interest rates are at a historic low right now, so it may be a good time to go ahead and [refinance],” says Shah Tehrany, a managing director at Franklin First Financial, a nationwide mortgage banker. “Right now, at 5 percent on a fixed rate 30-year loan or 4 percent on a fixed rate 15-year loan, you may want to seriously look into seeing if you can get a lower rate. According to the central bank of the United States, also known as the Federal Reserve, refinancing costs can range from 3 to 6 percent of your outstanding principal. (No closing costs options are also available.)

Sign #2 – You Have an Adjustable-Rate Mortgage…

via Five signs you may be ready to refinance – Yahoo! Homes.

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