Thinking About Refinancing Your Georgia Mortgage? Do Your Homework Before You Apply

By Gabriel Traverso
Local Lender Columnist
Sep 26, 2007
In today's unstable housing market the last thing you want to do is make a mistake with your home mortgage that could lead to foreclosure. Protect your home equity and find the mortgage that best fits your needs.

Georgia Mortgage Refinancing: Getting More Complicated

Georgia homeowners have more options than ever before when it comes to refinancing their mortgage. You can now choose between a fixed-rate mortgage, adjustable rate mortgage (ARM), or interest-only loan--or even a loan that combines features of all three! Rates are still historically low, but are project to increase over the next twelve months. If your current mortgage is much higher than current rates, refinancing could be a good move. But how do you know which loan to pick?

The Importance of Home Equity

There are many analysts who suggest putting extra cash in other investment vehicles than your Georgia home, meaning don't worry about building up your home equity. However, if you are in a housing market where prices are flattening or even declining that equity could be your lifesaver! Did you know there are more home mortgages in foreclosure right now than there have been in over fifty years, including homes in Georgia? As you consider your refinancing choices, including taking cash out of your home, make sure that you consider both your short- and long-term cash flow. Watch your home equity and try to keep a cushion that can help protect you from foreclosure.

Shopping Around for the Best Mortgage

Finding the right mortgage for you means you have to do the work. Consider your budget and check with a few mortgage lenders to compare rates, points, and other terms when refinancing. Don't forget to watch out for prepayment penalties--especially if you opt for an alternative mortgage like an ARM.

Source
Washington Post

About the Author
Gabriel Traverso is a freelance writer, professional musician, and an artist. He resides with his family in Reno, NV.