One Clear Dot

In light of yet another drop in interest rates, the average mortgage lender is offering all kinds of deals to people to refinance your current mortgage. It’s an attractive concept, I will admit. You have to do the math, though, and make sure the cost of refinancing is worth what you will save by refinancing. Now, if you can find a lender, Country Wide for example, who offers a no cost refinance deal then you might just be in business.

When the interest rates first started dropping in the early part of the century, most of my friends who owned homes rushed to refinance. Some of them had such high interest rates from before that the new closing costs they had to pay did not even make them bat an eyelash. Those of us who have bought homes more recently, though, probably have a pretty good interest rate already. Refinancing only makes sense if you have a risky ARM loan or an unusually high rate for other reasons. In that case, looking into a refi without fees is a smart move.

Posted on February 20th, 2008 by onecleardot
Filed under: Finance