Commentary: Do Homework to Find Out If Refinancing Is Worth It

Summary

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Mortgage rates have dropped to historically low levels in recent months. If you already have a mortgage and wonder if you could benefit by refinancing your home loan, it may be worth a closer look. But refinancing is a complex process, one that can be costly, as well. You want to be sure that refinancing is right for your circumstances.

The first consideration is whether the terms of a refinanced mortgage are significantly more favorable to you than those on your existing loan. This might be obvious if you are working with an adjustable rate mortgage where the rate has risen significantly from the time the mortgage originated. Even the rate on a fixed rate loans (typically 15-year or 30-year loans) might be notably higher than what you could find in the market today.

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Commentary: Do Homework to Find Out If Refinancing Is Worth It

Refinancing is a more critical consideration if you're having difficulty making payments on your current loan and face the potential of a home foreclosure. In that instance, you should active...

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