How To Refinance A Mortgage: 4 Ways Before You Commit To Refinancing
I was reading a recent article at USA Today who tell you that mortgages at 30-Year fixed mortgage rates down to 5.19% right now, the lowest according to the mortgage-finance giant Freddie Mac. I’ve tried Bankrate to see what type of loans were available. I’ve got three results:
Image Credit: www.bankrate.com
 
As you can see by this detailed image above, the best re-financing give us a 5.375% rate and a monthly payment of $1120. Being my monthly payment of $1249.50. In total, we could save $129.5 by this refinancing.
Here are 5 useful tips to use before you commit to refinancing:
1. Make your part - Knowing your future payment by using one of many mortgage calculators available online. There are three factors that determine your mortgage payment and they are your interest rate, mortgage amount and number of months.
2. Don’t paying any fee upfront - Usually, you need to pay an appraisal fee, but only after you already decided on your lender. This fee goes from $300 range for an average home but it could go up to $5oo-600 for a larger one.
3. Look, look, look - Choose between three known lenders. Comparing the same programs in order to knowing if you are getting a good deal. Your aims is to analyze three deals of the exact same term and program (For instance, 30 year fixed rate).
4. Make attention of early redemption charges - Not consider loans that charge early redemption fees or prepayment penalties for paying off ahead of time.
