The main reason couples decide to refinance their home mortgages is due to low mortgage interest rates. However, before refinancing, they must be conscious that sometimes they might wind up paying more, not less, for any mortgage because lenders charge new kinds of fees, and loan arrangements could be complex.
When you should refinance
If you are planning to reside in the home in excess of 5 years and do not expect a substantial rise in your salary (living costs increase or a little more), moving from the higher interest rate to some lower one or changing from a variable interest rate to some fixed-interest-rate mortgage might be worth taking into consideration. Typically the most popular mortgages are conventional fixed-rate 15 to Thirty year loans.
For homeowners who aren’t likely to remain in their houses in excess of 5 years or who are able to anticipate big salary increases, spending the cash to refinance might not be the wisest choice.
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