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Why You Shouldn’t Refinance Right Now |
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Posted: 7th January 2012 |
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Mortgage rates are
still the lowest they’ve been in a long while, and all
indications are that they will eventually go up. But,
that doesn’t mean you should jump on the refinance band
wagon. Here are four reasons why you shouldn’t refinance
right now:
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Your existing rate is hard to beat:
You may be seeing rates that are a half a
point lower than yours, but the costs to
refinance can quickly offset any savings. Be
happy with your great rate and start making
extra principal payments if you want to save
money on your mortgage. |
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You dinged your credit: If your score has
dropped recently you could be looking at thousands
of extra dollars going towards mortgage payments if
you are considered to be a borrowing risk. Get it
cleaned up before you refinance.
You’ve lost equity in your home: If you’re
home value has fallen along with the rest of the
market, you may find yourself with limited options
for refinancing. If you qualify for the
Home Affordable Refinance
Program you may get assistance in
borrowing up to 125% of your equity, but be wary of
continued falling home values.
There’s a move in your future: If,
based on your employment or family
situation, there is a fair possibility of a
move within the next five years you have to
consider whether you will be able to recover
the costs of refinancing.
Approvals.com is a
Credit Card, Loans and
Mortgage website with great deals for saving money. Our
main offerings include:
Credit Card Comparison
shopping, Credit Score Information, Current Financial
News, Bad Credit & Auto Loan Approval Guides and
Personal Loans.
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