${site.data.firmName}${SEMFirmNameAlt}
Contact Us For A Consultation
302-644-7181 Lewes
302-697-4900 Camden

Mortgage refinancing can be a great opportunity, but be cautious

Refinancing a mortgage loan is not always an easy decision. Homeowners must be certain that the costs of doing a refinance will be made up by the reduced interest rate on the new loan. When the numbers look right, though, it can be a great opportunity.

At present, it may be a good time to undertake a refinance as the interest rate is likely to be on the increase in coming years. That is because the Federal Reserve recently announced its decision to reduce bond purchases. That, experts say, will likely translate into high interest rates on mortgage loans. For this reason, those who are considering a refinance may want to consider doing so sooner rather than later.

The benefits of refinancing, of course, include not only lowering one's interest rate and monthly payments and saving money over the long haul, but also changing the type of loan. An example would be going from a variable rate mortgage to a fixed rate.

Before undertaking a refinance, it is important for homeowners to understand how much they are really going to be saving and how long it will take them to gain back the cost of refinancing. Experts say that for refinancing to be financially worthwhile, the mortgage rate must drop by at least a full percentage point. Whether the interest rate is fixed, variable or hybrid makes a difference.

When undertaking a mortgage refinance, it is important to fully understand the terms of the agreement so that one isn't caught by surprise when an issue comes up. Those who run into legal challenges during or after a refinance should contact an experienced real estate attorney for advice and guidance.

Source: Wall Street Journal, "Refinancing a Mortgage? Do It Soon," Jonathan Clements, April 26, 2014.

No Comments

Leave a comment
Comment Information

What Our Clients Say About Us…

My wife and I would like to take this opportunity to highly recommend the legal practice of Bonnie Benson and her very professional staff… Bonnie and her staff are organized, engaged in the client's case and they communicate effectively.

Read More
Latest Blogs
Get The Help Now

Need Answers Now? Contact Us Immediately

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

your success. our commitment. elder counsel excellence in elder law  and special needs state bar delaware association

Camden Office
306 East Camden Wyoming Avenue
Camden, DE 19934

Phone: 302-697-4900
Fax: 302-697-4901
Camden Law Office Map

Lewes Office
33718 B Wescoats Road
Lewes, DE 19958

Phone: 302-644-7181
Fax: 302-644-7182
Lewes Law Office Map

We Accept visa mastercard discover network
Review Us