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Is Refinancing My Home A Good Option For Me
Author David Schneider | May 23,2007
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Jenny and Smith owned a small two-bedroom condo in Fort Worth, Texas. They both worked and their credit was in good standing. However, in about seven months Jenny plans to quit her job to stay home with their new baby. This will reduce their income dramatically, making it difficult for them to keep up with their current mortgage payment. Jenny had not yet told her employers that she was thinking about leaving work, so the couple thought that it was time to refinance their high interest rate mortgage with one that offered better terms. However, in the back of both of their minds they still wondered, “Is refinancing my home a good option for me?”
Is Refinancing My Home a Good Option for Me
Deciding if refinancing your home is the right choice for you is not always easy to do. There are many factors to consider before answering this question. First, you need to ask yourself why you are considering refinancing your home in the first place. Do you have a lot of credit card debt? Do you want to go on a vacation? Or, do you want to make some home improvements?
The next thing that you need to consider is if you have any other financing options for your situation. For example, if you are drowning in debt, have you weighed the pros and cons of debt counseling and debt settlements? If you haven't, then you may want to do this before you put your home at risk by paying off your credit card debt with money secured by your home.
You also need to compare your refinanced mortgage with your current mortgage. Will it reduce your monthly payments? Or, will it help you to pay off your debt faster? If the refinanced mortgage doesn't offer terms that are more attractive than your current terms are, then refinancing may not be the best option for you.
Finally, you need to consider if you qualify for a mortgage. To determine this you will need to look at your income, your credit score and your mortgage payment history. If your financial profile doesn't look good, then you may want to wait to refinance your home until you clean up your credit history.
Find a Lender to Refinance Your Home
If you have decided that the answer to the question, “Is refinancing my home a good option for me?” is yes, then you need to start looking for a lender. Your should select your lender based on the terms that the lender offers, the interest rates that they offer and their willingness to help you qualify for a good loan product. To get you pointed in the right direction go to QuoteMatch.com now for free mortgage quotes. |
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