Top 3 Questions to Ask Before Refinancing

Refinancing your mortgage can get you a lower interest rate, but not everyone is an ideal candidate. Here are three major questions you should be asking yourself before you refinance your mortgage:

1. Am I planning to keep my home for at least three years? If the answer is no, it will rarely be worth the cost to refinance your home mortgage. It often takes at least two years to recoup the costs of the refinance.

2. Do I have an adjustable rate mortgage? These mortgages are likely to have much higher interest rates in a decade than today’s fixed rate mortgages. Refinancing to a fixed rate is a wise choice if you’re currently in an adjustable rate mortgage and planning to keep your home for a while.

3. How will I pay the closing costs? Refinancing isn’t free, but it can save you a lot of money. Consider whether you will pay closing costs out of pocket, roll them into the loan balance, or take a slightly higher interest rate to get a rebate to cover the closing costs.

If your answers to these questions point to refinancing, jump on today’s low interest rates. Contact Avis Lending to discuss refinance home mortgage options in Orange County!

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