Refinancing can be expensive. Costs include (but not limited to) :
origination and application fees
points (1 point is equal to 1% of the mortgage loan amount)
pre payment penalties when retiring the original note.
You can find mortgages with few or no points to reduce your refinancing costs. Find a lender that will include the refinancing costs, i.e. have them finance the fees. Shop around or check with your current lender, they may waive some of the refinance fees if you refinance with them.
When deciding on refinancing you have to ask yourself how long will you be in the home and how long will it take to recover the closing costs with the new payments. A refinance may make sense if you have an adjustable rate mortgage (ARM) as rates have been rising but still aren't that high yet. Refinancing also may make sense if you have not done so and your interest rate is higher than the current rate.
Which mortgage?
Coming soon - read about the different types of mortgages.
Alternatives to refinancing?
Coming soon -read about alternatives to refinancing.
Apply online?
When you apply for a refinancing loan online you will get hard copies of all documents you filled out online. You will also get closing cost estimates and other disclosures.
You will still have to sign all the documents but at least you won't have to sit in an office filling out all those refinancing application papers.
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