The Decision to Re-Finance

admin Last updated on: March 18, 2023

 The decision to re-finance a home mortgage is a serious decision which should not be taken lightly. Homeowners should give this decision a great deal of consideration to ensure they are making the best possible decision for their financial situation and personal needs. Some factors to consider when deciding whether or not to re-finance is the type of loan to choose, the lender to choose, the costs associated with re-financing and the hassle of the process. 

Consider All of the Options

Homeowners who are seriously considering re-financing owe it to themselves to consider all of the options available to them. They may have a friend who recently refinanced with a specific type of loan but this might not be the solution for all homeowners. Each homeowner should consider their situation to be individual and not likely to closely mirror the situations of others. 

Some of the options to consider include the type of re-financing loan. The basic options are fixed interest rates and adjustable interest rates. There are also mortgages which combine these two options. The homeowner may have a specific type of mortgage in mind but the lender may or may not be willing to offer the homeowner this type of loan. Lenders are more likely to offer fixed interest mortgages to homeowners with good credit and adjustable rate mortgages to homeowners with poor credit. 

Consider the Lender

Homeowners will also have to carefully consider the lender they select. This is important because not all lenders are going to be willing to offer the same interest rates and terms to the homeowner. Homeowners may have to receive quotes from several different lenders in a short period of time to make an accurate comparison. This is important because interest rates can change without notice and homeowners who wait too long to make a decision may find the rate they were originally quoted is no longer available to them. 

When selecting a lender the homeowner should also consider how responsive the lender is to their questions. This is important because a lender who does not pay attention to the homeowner or respond to their inquiries in a timely fashion can make the process of re-financing considerably more stressful than necessary. Selecting a lender who offers slightly higher rates but is more responsive may be warranted. 

Consider the Cost of Re-Financing

Re-financing is not cheap. There are certain costs associated with re-financing. These costs are typically very similar to the closing costs associated with securing an original mortgage on a property. These costs may include application fees, loan origination fees, property taxes, appraisal fees and other miscellaneous items. These costs can be quite extensive and homeowners may find they are often left paying more than the benefits they are going to gain from re-financing. In this type of situation the homeowner should make the decision not to re-finance because it is not a financially sound decision. 

Consider the Hassle of Re-Financing

Let’s face it; re-financing can be an absolute hassle. The time and energy spent researching different re-financing options and contacting lenders to see who will offer the most favorable rates can be quite taxing. A homeowner should consider the time and effort required for this endeavor in deciding whether or not to re-finance. Simply stated, refinancing is a hassle and homeowners may better spend their time with family and friends rather than running around trying to find the best rates in town. 

Hiburan dan tradisi
Nama saya
I Putu Agus Aryadi Pranata Putra

Related posts

Contoh contoh perilaku Sapta Timira dalam ajaran agama Hind

Contoh contoh perilaku Sapta Timira dalam ajaran agama Hind

 CONTOH PERILAKU SAPTA TIMIRA Dalam kehidupan sehari-hari kita sering melihat perilaku manusia yang berbeda beda setiap harinya, ada yang...

Những thông tin liên quan đến lương cầu thủ Việt Nam

Những thông tin liên quan đến lương cầu thủ Việt Nam

Có không ít người cho rằng mức lương cầu thủ Việt Nam rất cao? Vậy đây có phải sự...

Pengertian mengenai karya sastra sutasoma

Pengertian mengenai karya sastra sutasoma

SUTASOMA. Kerajaan Majapahit. Kekawin Sutasoma menggunakan bahasa Jawa kuno sehingga dimasukkan dalam kasusastraan zaman Majapahit 1. Kitab Sutasoma menceritakan...

Penerapan ajaran Panca Yama Bratha dalam kehidupan sehari-hari

Penerapan ajaran Panca Yama Bratha dalam kehidupan sehari-hari

Penerapan ajaran Panca Yama Bratha dalam kehidupan sehari-hari yaitu: 1. Contoh perilaku ahimsa. *. Merawat binatang peliharaan. *. Menyayangi...

Cicipi Lezatnya Kuliner Jogja di Tempat-tempat Recommended Ini

Cicipi Lezatnya Kuliner Jogja di Tempat-tempat Recommended Ini

 Cicipi Lezatnya Kuliner Jogja di Tempat-tempat Recommended Ini – Siapa yang tak kenal Jogja, tempat yang satu ini sangatlah...

Mortgages for people with bad credit

Mortgages for people with bad credit

  The most important factor that determines whether a person is can procure a loan for himself or not...