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Hottest Selling refinance Products Refinancing - Is it Worth While? efinancing can be worth while, but it does not make good financial sense for everyone. A general rule is that refinancing becomes worth your while if the current interest rate on your mortgage is at least two percentage points higher than the prevailing market rate. This figure is generally accepted as the safe margin when balancing the costs of refinancing a mortgage against the savings. There are other considerations, too, such as how long you plan to stay in the house. Most sources say that it takes at least three years to fully realize the savings from a lower interest rate, given the costs of the refinancing. Refinancing can be a good idea for homeowners who: * Want to get out of a high interest rate loan to take advantage of lower rates. This is a good idea only if you intend to stay in the house long enough to make the additional fees worthwhile. * Have an adjustable rate mortgage (ARM) and want a fixed rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan. * Want to convert to an ARM with a lower interest rate or more protective features (such as a better rate and payment caps) than the ARM they currently have. * Want to build up equity more quickly by converting to a loan with a shorter term. * Want to draw on the equity built up in their house to get cash for a major purchase or for their children's education. If you decide that a refinancing is not worth the costs, inquire whether you may be able to obtain all or some of the new terms you want by agreeing to a modification of your existing loan instead of a refinancing. Articles on refinance:
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