Rushing to make the decision to refinance may not benefit your financial situation, so take the time to avoid these eight mistakes: Not doing your homework. Assuming you get the best deal. Not taking into account all costs. Do not determine your refinancing break-even point. With mortgage interest rates as low as they are today, homeowners can save a lot of money by refinancing their mortgage loan.
For your convenience, here's a table of rates for mortgage refinance loans currently available in New York. While refinancing a mortgage can offer a lower monthly payment and save money, there are also mistakes and pitfalls to avoid. With interest rates close to historic lows, many people who have already refinanced their mortgage are rushing to do so again to get the lowest possible rate. Refinancing your mortgage can dramatically reduce your monthly payments, especially since rates are still so low.
If, for some reason, the value of your home has fallen, refinancing your home may entail additional costs, such as private mortgage insurance. While not common, some mortgages will leave a prepayment penalty in the fine print if you pay your mortgage ahead of schedule, as you would if you sell the house or refinance it. again.