[Kde-i18n-vi] 5 Point Capital - Is Home Refinancing The Right Decision For You?

[paul.kholer paul.kholer]

http://www.fivepointcapital.com/

Some smart financial decisions can change our financial future. The right
financial decision will help you save a considerable amount of money. And
the option of refinancing your existing home can prove to be most beneficial
if you make the decision at the right time and right place.

There are several reasons why you may want to refinance your home. You may
find that refinancing offers lower interest rate than the current rate,
meaning that the required monthly payment can be considerably lower than
what you are currently paying every month. Home refinancing can also cut
your mortgage period shorter. In some cases you may even be entitled to get
some cash back. With all these benefits, it is no wonder home refinancing is
so popular, and these reductions each month amounts to a huge cost saving in
the long run.

When taking out your first mortgage the interest rate may have been quite
high. If you had enough foresight of taking an adjustable rate mortgage
(ARM), you can take advantage of the current lower interest rates by
refinancing your home today. On the basis of the current lower rates, you
can then opt for a fixed rate mortgage to lock in the lower rates.

There are instances where people refinance to get cash back and the extra
cash is then used to consolidate and manage other higher interest debts such
as credit cards or other consumer loans.

Home refinancing is also an option if you want to completely own your house
before the term specified in the first mortgage. Refinancing may allow you
to switch from a 30-year mortgage to a 15-year mortgage with a lower rate.
It will definitely require you to pay a higher amount each month, but you
would own full equity of your home in much less time.

You will enjoy significant cost savings from home refinancing only when you
are planning to keep your home for a number of years. Suppose you refinanced
your home, yet plan to sell your house soon; you would not save much on
costs as refinancing involves its own costs. So refinancing is worthwhile
only when your total repayments are much lower with respect to the costs you
have to bear for the refinancing. One easy way to determine whether
refinancing your home is worthwhile is to multiply the number of months you
plan to own the house by the savings per month. Now compare this amount to
the costs of refinancing. When your total saving is considerably higher than
the refinancing costs, then go ahead and refinance your home without any
worry. But in case the refinancing costs are higher than your savings, then
home refinancing may not be a good option at this time.
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