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Things To Remember Before You Refinance Your Home
March 19, 2009 by Mortgage Align · Leave a Comment
Refinancing a mortgage can really be taxing. Keeping abreast of the intricacies of refinancing will be beneficial. You need to know the basic things about the deal, make a checklist before signing.
• Interest Rate
The interest rate will depend on the type of refinance mortgage you have chosen and on that basis monthly payments will be made. Taking an ARM will have an interest rate that will be fluctuating as it’s based on the market index. While a fixed rate of interest will give you security of a fixed monthly payments.
• Prepayment fines
Mortgage lenders put prepayment penalties because it is in their favor. If you will have a prepayment fine in your mortgage, you will have to give the lender the penalty for refinancing. Be aware of these clauses.
• Term of refinance
Term of the loan means the total time you have to repay the loan. Longer the term of the loan, lower monthly payments are there. With a shorter loan of 10 to 15 years gives you ownership faster, with lower interest monthly.
