Home » Finance » Mortgage

When Is It Best To Refinance Your Mortgage

Jan 9, 2008
After the Federal Reserve announced it had lowered its rate by a half percentage point many Americans assumed it was time to refinance. So, around the country, thousands of people called their lenders to start the process.

There are many facts you must gather and consider first. How long is your current mortgage? Does it adjust? When will it adjust next? How high can your loan go? How many years are left on your loan at the current interest rate?

One of the main questions is, how is your credit? What is your credit score? How long will you keep the home you are now in? How much home equity do you have? What interest rates will you qualify for (this relates directly to your credit score)?

With the current mortgage mess, lenders have raised the minimum credit score you need to get a great loan. If you previously needed a 720 on your FICO score to get that great rate, you now need a 760 or even a 790 score.

You also need to have some equity in the property in order to refinance. Many homes have fallen in value. If that's the case in your neighborhood, you might not have the equity you once thought you had.

To give yourself the largest number of options, be sure to shop around. I would typically call four or five different lenders to make sure that the rate you are going with is the best.

Your original lender often try's very hard to keep your business and if you have kept up with your payments and on time, you most likely will be shown loyalty for this.

They will want the business of a customer who has had a good credit history with their company. There are thousands of people out there now that are having problems making their monthly house payment.

There are times when it makes sense to refinance other types of mortgage loans that you have been tied into other than just a fixed loan. It's important to have the financial objective in mind so that you're more able to choose the most appropriate loan.

Since the Federal Rate has gone down and if your credit score is in a good position, now is the time to consider changing to a safer and more productive move if you have one of the following: adjustable rate mortgage, to lower your interest rate if it is substantially higher, to reduce from two mortgages to one or if advised by a financial advisor for other purposes.
About the Author
Court provides information about student loan consolidation and helps people refine their strategic internet marketing.
Rating:
Please Rate:
(Average: Not rated)
Views: 173
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources