With
news about the mortgage “crisis” on television every night, many
people are scrambling to refinance their adjustable rate mortgages
to a lower fixed rate.
30 year fixed rate loans are at outstanding rates right
now.
Do you
have a fixed rate loan you are thinking about refinancing? It sure is tempting to think
about going from a 7% fixed rate to a 5.75% fixed rate. Is it the right thing to do
for you? Your monthly
payment will certainly go down if you keep the same balance on your
loan and only change the interest rate.
There
are other things to consider:
What
about closing costs on the new loan?
Will you
be paying those out-of-pocket or rolling the costs into the new
loan?
Are you
consolidating any other consumer debts into your new house
loan?
How long
are you going to stay in the house? (Really?)
There is no magic answer but there are many things
to consider before going through anotherstressful loan
process.