Should You Refinance Your Mortgage When Interest Rates Drop? - If interest rates are low it might be time to refinance your current mortgage. The interest rate should be at least one point lower your current interest rate. There are closing costs associated with refinancing, this includes appraisal, credit report fees and application fees. Closing costs fees will probably run you around 2-5 percent of the mortgage amount.
If you have prepayment penalties associated with your mortgage, refinancing might not be right unless interest rates are significantly lower. You shouldn't refinance if you have less then 3-5 years left on your mortgage, because you might not recover the closing costs.
Use a calculator to decide whether refinancing if right for you. You should be aware that if you refinance your mortgage for more then you have already paid off on your existing mortgage, the additional amount is not tax deductible. Only the interest that does not exceed the amount of your existing mortgage is tax deductible
Posting Komentar