Purchasing a home is a large investment of time, energy and resources. Consumers who decide to buy property should take time to consider all the options and challenges involved in the process. Learn some of the best questions to ask a potential mortgage lender and what to avoid when starting out the search.
A refinance could cut the monthly mortgage payment but whether it is the right move or not depends on some factors. Learn more about some things to consider prior to refinancing a home mortgage that could save time and money. Refinancing Costs Money A free finance does not exist as there are closing costs associated with any closing no matter what house a person buys. Anywhere from 2 to 5 percent of the loan amount will be added on and need to be paid upfront. Some options can also include: Cover the closing costs using a no-closing cost refinance which can come with a slightly higher interest rate Look at closing costs and how those will be covered prior to calculating how long it will take to make monthly payments to repay the closing costs If the closing costs will only be covered in four years and the plan is to stay two years in a home, refinancing may not make sense Savings Refinancing makes sense when the interest rate on a mortgage is more than 100 basis points abo