| |
Mortgage Refinancing Help
: Society: Government: Finance: Central Banks
: US Federal Reserve (15)
 Closing costs can be expensive. If you plan on refinancing your home to save money, be sure to take into consideration how much the closing costs on the new loan will cost you.
 See also:
 Federal Reserve Bank of Philadelphia »
Third Federal Reserve District, which comprises eastern Pennsylvania, southern New Jersey and Delaware. Economic and banking information.
|
 Federal Reserve Bank of Atlanta »
Sixth Federal Reserve District, which comprises Alabama, Florida, Georgia, parts of Louisiana, Mississippi, Tennessee, Puerto Rico and the US Virgin Islands. Economic and consumer information.
|
 Federal Reserve Bank of Cleveland »
Fourth Federal Reserve, which comprises Ohio, Pennsylvania, Kentucky and West Virginia. Banking and economic information.
|
 Federal Reserve Bank of Minneapolis »
Ninth Federal Reserve District, which comprises Montana, North Dakota, South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. Economic, banking, consumer and agricultural information.
|
 Discount Window - Federal Reserve System »
Federal Reserve System
- Details operation of the various Discount-Window facilities.
|
 Federal Reserve Bank of Dallas »
Eleventh Federal Reserve, which comprises Texas, northern Louisiana and southern New Mexico. Banking and economic information.
|
 Federal Reserve Bank of Kansas City »
Tenth Federal Reserve District, which comprises Kansas, Colorado, Nebraska, and Oklahoma. Economic and banking information, especially about rural America.
|
 Federal Reserve Bank of San Francisco »
Twelfth Federal Reserve District, which comprises Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, Washington, and American Samoa, Guam, and the Northern Mariana Islands. Economic, banking and consumer information.
|
 Federal Reserve Bank of Chicago »
Seventh Federal Reserve District, which comprises Iowa, Indiana, Michigan, Wisconsin and most of Illinois. Economic, banking and historical information.
|
 Federal Reserve Bank of Richmond »
Fifth Federal Reserve Bank of Richmond, which comprises Maryland, the District of Columbia, Virginia, North Carolina, South Carolina, and most of West Virginia. Banking economic and consumer information.
|
 Federal Reserve Bank of New York »
Second Federal Reserve District, which comprises New York and most of New Jersey. Primus inter pares among the regional federal reserves because of its activities in the wholesale market.
|
 Federal Reserve Education »
Instructional information about the Federal Reserve, economics and financial education.
|
 Federal Reserve Bank of St. Louis »
Eighth Federal Reserve, which comprises Arkansas, Illinois, Kentucky, Mississippi, Missouri and Tennessee. Banking and economic information.
|
 Federal Reserve Bank of Boston »
First Federal Reserve District, which comprises Connecticut (except Fairfield County), Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. Economic and banking information.
|
 Board of Governors of the Federal Reserve System »
Board of Governors of the Federal Reserve System in Washington D.C.
|
|
|
 If you plan on moving out of your existing home within the next few years, it may not be beneficial for you to refinance. Make sure you let your mortgage specialist know your future plans.
Changing the term of your mortgage can help in several ways. First, if you were to refinance your current mortgage from 30 years to 15 years, you will accelerate the rate at which you pay towards principle each month meaning your house will be paid off quicker. Also, you will save an unbelievable amount of money in terms of interest because you would likely be taking 10 to 15 years off the life of your loan. Second, you can also refinance a 15 year mortgage to a 30 year mortgage. It seems like it might not make sense to do this, but if you have an immediate need to free up monthly cash-flow and you don't want to take out a home equity loan, this can work out to your benefit. When you take a 15 year loan and refinance it to 30 years you will have the same balance only the payments can be hundreds of dollars less than the 15 year loan. The only draw back to this is you will pay more in interest over the live of the loan.
Resist "no cost" refinancing. No cost doesn't mean free. On the contrary: The closing costs are usually bundled into the new mortgage, which means you pay interest on them. The fees associated with a 30-year mortgage could cost you more than double what they would have had you simply written a check for them at closing. Or, if the costs aren't bundled in, you'll be charged a slightly higher interest rate. Either way, the lender wins.
Mortgage can last a lifetime and that extra 1% can add up to literally thousands of dollars over the years. I have friends that are in their 70s and still paying off their home loans. It'll pay off in the long run to make sure you find the best deal possible. Don't let poor credit stop you from refinancing your home.
|
|
