When Should You Refinance Your Home?
Posted by @TopMortgageRate
6 questions to ask before a refinance
A home mortgage refinance may sound like a good idea in theory, but it's not always possible or desirable.
For starters, lenders have tightened up the approval process, making it more difficult to get a loan.
"Homeowners today need to be triathletes to qualify for a loan, with great income, great credit and great value in their home," says Anthony Hsieh, founder and CEO of loanDepot.com, headquartered in Irvine, Calif.
In addition, a refinance may not make sense financially, particularly for borrowers who plan to sell their homes in the next few years.
Before taking the leap and opting to refinance, homeowners should ask themselves the following six questions.
1. Do I have equity in my home?
2. Do I have good enough credit?
3. What are my financial goals?
4. How long do I plan to stay in this home?
5. What are the terms of my current loan?
6. Do I have a second mortgage or line of credit?