Mortgage Refinancing: Use Free Online Calculators To Decide If The Time Is Right
Thoughts of refinancing can be spurred by many factors:
Perhaps your current term is coming to an end and you don't have a choice.
Maybe interest rates have dropped and your wondering if you can save some money over the long term with a new, lower rate.
Your mailbox could be (and probably is) full of junk mail from lenders competing for your business and your wondering if switching banks is a good idea.
Regardless of the reason, it's important to keep in mind that there are costs associated with a mortgage refinance. It's imperative that you factor in all of these costs when you're making a refinance decision. Leaving anything out could result in a mortgage you're stuck with for several years that you're not happy with.
Don't even bother trying to figure any of this out on your own. You'll just end up wasting time, and drive yourself nuts in the process!
The easiest way to keep everything straight is by using free tools that are easily found on the net. Do a quick google search for "refinance calculators" and you'll get a heap of results. Most of them are very easy to use, and you can quickly compare your current terms with all the current options. Make sure you print off the ones that look good for more in depth analysis.
What you are most concerned with is the breakeven date. This is the date that your savings on the mortgage covers the cost of the refinance itself. This date is very important! For example, if the breakeven date is five years down the road and you're selling in four, then it doesn't matter how good the interest rates are. You'll still lose money. On the other hand, if you're expecting to stick around more than five years, now is the time to go for it. Determining this date with a free calculator is easy and quick. Doing it by hand however, is like pulling teeth.
Play with the different interest rates and different terms (number of years to repay) available to see where the breakeven point and the terms line up with what you can afford. This way you're sure to get the best deal available in the brokers office.
Once you've decided if a refinance makes sense, found the best options, and you've double-checked everything, gather up your documents and information and head to your mortgage brokers office. You're now sitting in the driver's seat because you took the time to do your homework!
Related Tags: interest rates, mortgage refinancing, mortgage calculators, free online caclulators, mortgage brokers
Trevor McKay is a professional real estate investor who frequently finds himself refinancing properties to improve his company's bottom line. Check out his site http://www.AllAboutMortgageCalculators.com for free online calculators, tips, tricks and techniques to help stetch your mortgage dollars further.
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