Monday, December 29, 2008

Refinance Or Not? That Is The Question

If you find yourself at the closing table. Good question. You might ask what the heck family memories have to do with a home refinance. Also, a home is most often filled with the owner?s personal touches and contains many memories.

Also, a home is most likely the single biggest asset you own, and can make the decision to refinance a difficult one. Your home is most likely the single biggest asset you own, and can make the decision to refinance a difficult one.

The higher your mortgage interest accrued per year, the higher the tax deduction benefit if you itemize on your tax return, as opposed to taking the standard deduction. Speak to your accountant to discuss the tax benefit comparison between your current mortgage and proposed refinance mortgage. Determine the maximum monthly payment that meets your comfort level.

Figure your current monthly expenditures to compare against various refinance scenarios. You may be looking for a lower rate, lower payment, debt-consolidation, cash-out for various purposes, or to get out of a variable rate program and into a fixed-rate loan, or maybe a 30 year term to lower the monthly payment and use the extra money for investments. Dig as deep as you can. It may seem obvious, but you should ask yourself what you wish to accomplish in the short and long-term with a refinance, before you begin the process.

If you know you will be in your home for a long period of time, you will most likely be more comfortable with a fixed-rate refinance. This is an important question. How long do you plan to be in your home?

You should expect no less, because after all, your home is your castle. Now that you know the details, terms, benefits, and future stability of your refinance program, you will feel confident at the closing. The best refinance program is one that provides for immediate benefit, and also provides for future financial stability in-line with your objectives. Your loan officer should be able to guide you throughout the entire process, and provide you with disclosure documents detailing the specifics of the loan program that you ultimately choose to utilize.


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