By Bill Smith
Many banks compete to give you a refinance on your home loan.
Some of the popular web sites will give you multiple quotes
from different lenders. However, you need to be very careful
about the home loan you choose. Since the prices of real
have sky rocketed, there are many refinance loans you need to
very careful about. One category of such loans is the
only loans". Instead people should simply stick with a 30 year
of a 15 year mortgage and pay off the loan. The choice among a
15 year loan and a 30 year loan depends on the individual.
However, I recommend a 30 year loan. The monthly payment on a
30 year loan is less compared to a 15 year loan. This said,
there might be a phase in your life when you are not financial
stable (medical bills or not having a job). In such cases,
dealing with a lower payment is much better than defaulting on
your payments. My advise will be to take a 30 year refinance
home loan and in-between when you have ample cash left on the
table, you can make some extra payments also called as
principal payment towards your loan. In short, 30 year
loans are a better choice.
Below listed are some of the golden rules while considering
refinancing of your home
1. If your new offer is at least 2% points lower than your
current one, it makes sense to refinance your loan. The 2%
spread is essential to cover your costs and time involved in
the refinance process.
2. Ask yourself a simple question? How long do you intend to
stay in your home? If you intend to stay for less than 5
a refinance may or may not make sense. Your numbers will give
you a complete picture.
Additionally if you decide to purchase a new car, you can
refinance your home and roll up the car purchase up in the new
mortgage. This is the best way to spread the cost of your car
over the life of your loan and avoid a high interest car loan
with the tax advantages you get from your mortgage deductions.
About The Author: Bill Smith is a refinance loan officer for
www.amerirefinanceservices.com/ Visit us at
www.amerirefinanceservices.com/ for mortgage loan