Wednesday, January 7, 2009

Making Sense of Refinancing

The ads on the radio make it sound incredibly sensible but is it really worth it for you? Refinancing your home is costly and there are important questions you have to ask of yourself and depending on the loan you are currently in different "rules" apply.
1) Are you in an adjustable rate mortgage? -if the answer is no skip to #7.
2) What was your intent when you took out an ARM?
3) What has changed since?
4) When will your loan see its first adjustment?
5) What are the caps, how often will it adjust, and which index is your loan based on?
6) Can you afford the new payment?
7) When is your break even point?
8) How long do you plan live in your house?
9) Why do you think you want to refinance?
10) Are you willing to sacrifice your equity (your money) to do so?
11) A mortgage is typically your biggest liability do you really want to incur more debt?
12) The questions just keep coming don't they?
13) Do you feel secure in your job?
14) What if you have to sell?
15) Would you be more willing to sacrifice your cable and cell phones instead?
What does your gut tell you?
Bottom line this is your home, your money, your future. If after answering these questions for yourself and it still makes sense for you then call me and we can talk numbers. If you don't know the answers to some of the questions or need guidance then call me. The last thing you deserve is to walk away from a transaction and have second thoughts. I need you to sleep at night so that I may do the same. I want to earn your respect, your trust, and your referrals. That my friend means more to me than just closing another deal.