Tuesday, December 09, 2008

Recent Story on Good Morning America

A recent story featured on Good Morning America titled "Time to Refinance" gave some good tips on whether this is a good option for you. You have to do your research. First, you have to find low interest rates. They stated a good rule of thumb is to refinance only if you can get at least 1% lower interest rate than your current rate. You have to also consider the closing costs. With the reduction in your monthly payment, how long will it take you to get back what you paid for the closings costs. You should also consider whether its worth based on how long you expect to stay in your home. If you know your going to be there long term then refinancing is probably a good option. If not, then it may not be worth it. Once you do your research talk to your original lender and see if they will match interest rates offered by other lenders. This could help save you in closing costs. Research is key. You have to be armed with as much information as possible to negotiate effectively to get the best rate.