Residential Real Estate · Commercial Real Estate · FAQs – Real Estate
Should I refinance my mortgage?
Under certain circumstances, refinancing your mortgage can be very worthwhile. Refinancing your mortgage is taking out a new mortgage to pay off your existing mortgage. Refinancing also could involve combining both a primary and secondary mortgage into a single mortgage. Refinancing also could involve taking out a new mortgage to pay off an adjustable rate mortgage (ARM). This would be beneficial to those who want certainty as to their monthly payments. As a general rule, it is worthwhile to refinance your mortgage if your new interest rate is around 1 1/2 to 2 percentage points lower than your existing interest rate. Although it generally takes a few years to realize the savings of a lower interest rate, it could be beneficial to those who plan on staying in their home for an extended period of time. Also, there are costs associated with refinancing.
Click on the following link for more information: http://www.federalreserve.gov/pubs/refinancings/default.htm.
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