 What
do the experts say?
Deciding when or if to refinance your home depends
primarily on your own unique financial situation.
There really is no clear-cut rule for when or when
not to do it. There are times when it makes economic
sense to refinance. In order to ascertain what’s
best for you, it’s important that you take stock
of your own financial circumstances in relation to
your financial objectives and goals.
Home
refinancing is often done when interest rates drop
because home owners can lock in a lower rate and lower
their monthly payments. It is also a great way to
consolidate bills and pay off expensive credit card
debt.
But
with interest rates now on the rise, is the boom over?
Is it too late to get a great deal refinancing your
mortgage? No, it's not too late. But you must be aware
of the housing and financial markets in your area.
One
of the main reasons that people refinance their homes
is to consolidate their high-interest credit card
debt. Converting this taxable debt to tax-exempt mortgage
debt can literally save thousands of dollars over
the life of the loan. And mortgage interest rates
are generally significantly lower than credit card
and installment loan debt, so refinancing to pay off
those high interest-rate loans only adds to your savings.
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