Refinancing Advice!

Applications for refinancing are down right now while mortgages for purchasing are up a little. Hopefully it is a sign of the confidence of the buyer improving a little.
When you do refinance, you need to ask yourself why you are considering refinancing:
• Is it to lower your payments and save on interest?
• Is it to shorten the term to pay the loan off sooner?
• Or is it to take additional cash out of your equity to consolidate your debts and provide some cash?

Check with your good mortgage person to make sure if you are paying points or origination fees that you might want to pay a slightly higher interest rate since points on a refinance are not deductible.

Reducing the years on your mortgage is a great idea. If you are refinancing back to another 30 year loan, I feel you are going backwards and that is not going to help you in the future getting your house paid off. You may never pay it off but you can certainly build equity quicker and your mortgage interest rate is usually lower.