Many homeowners with mortgages have considered refinancing at some point or another.
Refinancing a mortgage essentially replaces your current mortgage with a new loan. It's an especially enticing choice for people who want to decrease their interest rate, lower their monthly payments, pay off the loan faster, tap into home equity, or turn an adjustable-rate into a fixed-rate loan.
But hold on. Sherry Graziano, SVP, mortgage transformation officer at SunTrust in Orlando, FL, says that just because rates are at historic lows doesn’t mean that refinancing is the right decision for everyone. "Before beginning conversations with lenders, the homeowner should have a clear financial objective and see refinancing as way to achieve that objective."
Once you've decided that refinancing is worth exploring, find a mortgage representative who can clarify all the financials and explain all your options. While you're discussing this, it's important to ask the right questions—and lots of them.
Ready to refinance your home? Before you jump in and start the refinancing process, here are some questions you should plan to ask your mortgage lender.
1. 'Does my quote include taxes and insurance?'
2. 'How much money do I need to bring to closing?'
3. 'What are my out-of-pocket costs?'
4. 'Do I have room to cash out any equity?'
5. 'How long is the term of the loan that you are quoting me?'
For more information, go to Realtor.com
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