Home Loan and Refinance
Is it a good idea to refinance your mortgage?
One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance.
Although every situation is different, I would recommend refinancing your mortgage if:
Current interest rates are at least 1 percent lower than your existing rate.
You plan on staying in your home for another 5 years (give or take)
You anticipate being approved for the refinance loan.
What type of insurance pays off the remaining debt on your mortgage or other loans?
While mortgage protection insurance will pay off your loan when you die, PMI is intended to cover a portion of your loan if you default and the benefit is paid to your lender, not your family. PMI is designed to reduce the risk faced by lenders.
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Last Update : Feb 10, 2020
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|Item Owner : Ramesh|
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