Should You Refinance Your Texas Mortgage?
By Allison E. BeattyLocal Lender Columnist
Dec 27, 2006
There are many good reasons to refinance your Texas mortgage, but are market conditions right for you? Here’s how to decide if it makes sense to refinance your Texas mortgage.
Look At Refinancing Rates
Interest rates are key when determining whether to refinance. There are many mortgage lenders with favorable rates in the competitive Texas mortgage market. Take a look at your current mortgage loan commitment to determine:- Your current rate.
- How long your rate is effective. If you have an adjustable rate mortgage, for example, how many years are left on the current term? Are rates in Texas likely to be higher or lower by then?
- Your mortgage loan balance. (You may have to call the lender, as the amount listed on your monthly statement rarely the real payoff amount).
Your Refinancing Goals
Consider your short and long-term goals. If you plan to live in your house for many years, refinancing can be a low-cost way to use your equity to improve your kitchen. If you plan to move in six months, then the related mortgage costs may not be justified. Among the most common reasons for refinancing:- To obtain a lower interest rate.
- To take cash out for remodeling your Texas home or consolidating debt.
- To move to a fixed rate mortgage from an adjustable rate mortgage.
Investigate Refinancing Programs
As you shop with various mortgage lenders, consider:- How much house you can afford with different interest rates.
- Whether a fixed or variable interest rate is best for you.
- How much the new home loan will cost, including any points or other fees.
About the Author
Allison E. Beatty is a syndicated real estate writer who has been writing columns for 15 years.