Is It a Good Idea to Refinance?
August 15, 2018Before you start your refinance application, here are some things you need to keep in mind in the Greater Chicago Area:
1. Appraisal Amount
Getting your home appraised for your desired value may be more difficult than you imagined. Residential homes are valued based from sales located within a mile from the property that occurred less than 90 days ago.
Do your research to see what the local houses look like that were just recently sold.
2. Closing Costs/Property Taxes
If you incorporated your closing costs into your home loan, your closing costs will be incorporated into the new loan. Another thing to consider is property taxes. Your escrow account will restart and you will owe approximately six months of property taxes.
3.Decreased Equity
If you choose to go through with a refinance, your home may decrease in equity. This eliminates a possible safety-net down the road.
4.Longer Term
A 30 year fixed mortgage is the most common loan term. Before choosing to refinance, understand how many payments you currently have left. Then investigate how many payments you will have to make with your refinance. Although the payments may be cheaper, you may be paying more over the long-term.
We hope you LOVE this information. Continue to visit our blog for more helpful real estate information.
Original Article: https://www.cthomesllc.com/2016/03/does-is-make-sense-to-refinance/