REFINANCING -- YES OR NO

As always you hear everything...Friends/Family and even those that you don't know will tell you what you need to do.  It is always good to listen to what people have to say, but you need to one decide for yourself.  Here are some issues you will need to take into consideration:

First of all you need to think about how long you plan on staying in the home!
Look at your monthly mortgage decrease versus the amount of months you intend on staying in the home!
If for instance you plan to sell your home prior to recouping all your costs of the refinancing it might not be a good move to pursue a re-fi.

Before pursuing a re-finance:

1. What is your break-even point?  Divide the cost of re-fi by your monthly savings.  You will need to figure in all the points and fees (these will be called "discount fees or origination fee".  These are the cost that the lender charged to close the re-fi.  One point = one percent of the loan's value.)
2. Does the up-front cost, knowing the number of months you plan to say in the house, save you any money?
3. Make sure you look at the interest rate.  Is it fixed or variable?  Make sure you know to help you decide if refinancing is for you.

Now that you have checked out all of these issues and you decide to go ahead with the re-fi, be sure you
SHOP AROUND......ASK QUESTIONS......TALK TO LENDERS.

Last but certainly not the least of the process.....READ EVERYTHING!!!!!!!

Call if I can help you:
Aleene Embry
RE/MAX Lubbock
806-790-7001
aembry@remaxlubbock.com
http://www.besthomesinlubbock.com/