Time to Refinance Your House? Avoid These Common Mistakes

A new year is here, and you may be looking for a way to generate some cash flow.

A House Refinance can be a great option because it can allow you to use the equity in your home to pay off some higher interest debts, or e.g. do some home improvements you've been wanting to do...but just did not have the funds.

Although home refinance loans can be a good solution...it's important to avoid these common mistakes:

1) Read the fine print on your mortgage loan agreement BEFORE signing the contract

-Many people sign mortgage loan contracts, get their money, then a year or so later are surprised to learn that their interest rate has skyrocketed. Read your contract very carefully and make sure ALL of your questions are answered before committing to a mortgage loan prematurely.

2) Don't let a mortgage advisor talk you into a refinance loan if the time is not right for you

-There are thousands of companies and banks who are anxious to increase their bottom line, and get your mortgage business. They may present you with extremely low rates, but again...read the fine print. The rates presented to you are often times just introductory, and can significantly increase over time...depending on the type of mortgage loan you secure.

You may be presented with a good rate now, but you should evaluate the rate relative to your current situation.

For example, if you have an ARM loan and are making minimum payments because you plan on moving shortly, but you get convinced to to accept a lower fixed rate..this can mean you may be paying several hundred dollars more per month on your mortgage.

The difference between a minimum and full Principal and Interest Payment can be quite substantial, especially in the short term. You could be saving hundreds of extra dollars per month until you move, then when you decide to make a long term committment on a property, it could make better sense for you to get a fixed mortgage and pay the full Principal and Interest payment at that point. It all depends on your situation.

For additional mortgage loan resources please visit the following links:

http://www.i-mortgagenetwork.net
http://www.i-mortgagenetwork.org
http://www.i-mortgagenetwork.com


All the best,

Traci
I-MortgageNetwork Team