If you want to refinance your home here are three good ways to cut your expenses !

Just a quick heads up on 3 good ways to cut your costs when trying to refinance your home...............

1) You need to be very careful for those hidden costs by mortgage insurance.
Be sure to study the fine print concerning your refinancing contract. Here is the low down.....if you are refinancing and dont have 20% invested in Equity in your house then you could possibly be indebted to some sort of private mortgage insurance.

The very morbid fact is that many individual are paying this private mortgage insurance and do not even know they are paying it. This amount can be up to 4% of the total amount that is still outstanding on your home ! Over time this can add up to a whole lot! To stay away from this you need to borrow less money when refinancing. You do this so you will not be in the parameter of the 21% to 81% threshold !!

2) You should have a general idea of how long you will be dwelling in your home.
For many people, a fixed mortgage rate seems attractive, but for some house owners it may not be the most advisable thing to do if they are only in their homes for a few years and then sell it.

In a short term adjustable mortgage rate the interest can in many instances be lower than a fixed mortgage rate. With the case of ARM loans ,the mortgage rate can be the same for many years after the loan contract is finalized.

If you are a home owner you should know how long you want to dwell in your home and have it all mapped for the future.......this can really save you large amounts of money, PERIOD !


3) You need to try to set goals to pay off points before they are even due. I know this can be tough especially if you are on a shoe string budget.
Its not easy but you need to take a step back and consider doing this. The truth is that by paying points early you save a large amount of money through the lower interest you will receive when refinancing. Even a 1/4% or 2/3% can add up to a lot of money saved through the life of the loan..

I hope these three ways to approaching refinancing will help you and save you lots of money in the future!

Best regards,
Rob