 | Robert Cobb is Managing Broker/Owner of CENTURY 21 Cobb Realty in Pittsburg, KS. He is a life-long resident of Pittsburg and a PSU graduate with a BS in Business Administration. He has been in the real estate field for 23 years. He is currently a KAR Director and the President of the Pittsburg Board of Realtors. |
Real Estate
2011-07-01 08:19:00
Refinancing your home
Question: Lately, I have been receiving an incredible amount of calls about refinancing my home. I have been in my home ten years and have pretty good credit. Can you tell when it is good to refinance, and reasons you may or may not want to do so?
Answer: This is a very timely question. Refinancing is something that is on the mind of many people today, and for some, offers a great option in making finances more manageable. Refinancing replaces your current mortgage with one that is more advantageous. Typically, you can refinance if you have built up enough equity in your home, have not had any recent late payments and have a reasonable credit score.
You may want to consider refinancing for many reasons:
•If it allows you to save more
•If it enables you to pay off the
debt more quickly
•If you need to consolidate a
first and second mortgage
•If you need extra cash to pay
off other higher interest debts
•You want to convert from a
Adjustable Rate Mortgage for
a Fixed Rate Mortgage
However, refinancing is not right for every homeowner even if rates have gone down since you secured the original loan.
You may not want to refinance in these situations:
•You are near the end of your
current loan and close to being
free of the debt
•You have already taken out
considerable equity
•Your property value has gone
down
Refinancing can be of huge benefit under the right circumstances. Before you take the plunge, you might want to consult a financial advisor to see if refinancing is wise in your case and how to use it to your best long-term advantage.
