When refinancing your home, it's helpful to know a few things
about refinancing. When you refinance, you usually pay off the
old loan and sign for a new loan, whether you are refinancing
your 1st mortgage, second mortgage or home equity loan. The
expense that comes in to play when refinancing are the new
closing costs and points charge for getting a new loan.

How much can you expect in closing costs for a refinance?
Usually between 3-6% of the total loan amount. So, for a loan
amount of $150,000, you can expect to pay around $7 in fees.
Usually, a company that will say that have no closing costs,
will also charge a higher interest rate to compensate. The
mortgage broker has to make money somehow, they will either
charge a higher interest rate or charge higher closing costs.
The best way to compare refinance lenders is to analyze all of
the expenses.

Should I pay down points on my loan? If you plan to stay in
your home for more than 3 years, it may be smart for you to
consider paying down points on the loan which reduces your
interest rate. That pays off if you plan to stay in your home
for a while, but if you plan to sell the home soon, you may
lose more money paying down the points on the loan.

How can I know if I should refinance or not? If you are
interested in finding out whether it would save you money in
the long run to refinance with the current interest rate, there
are financial calculators online that can help you determine if
you would save money refinancing your house or not.

To view our list of recommended refinance mortgage companies
online or to use a refi- calculator, please visit this page:
http://www.abcloanguide.com/refinance.shtml


About The Author: Carrie Reeder is the owner of
http://www.abcloanguide.com, an informational website about
various types of loans.