Interest rates fluctuate as
changes occur in the general economy. If you purchased your home when interest
rates were higher, you may want to consider re-financing your loan at a lower
rate.
You will have to apply for the new mortgage and
have your current income eligibility assessed. Depending on how long you have
had your present loan, a current appraisal may be required. There are closing
costs, such as attorney, title fees, recording and notary fees, and appraisal
charges.
The biggest factor in your decision should be the
length of time you plan to remain in your home. If you will be there for only a
year or two, it may not pay to re-finance. If you will be in your home longer,
re-financing could provide you with lower mortgage payments. Your Realtor can
help you work out the numbers and can refer you to reputable lenders.
