Fixed or adjustable rate mortgage?
Having decided to refinance, one of the most significant decisions you will have to make is whether to get a fixed rate mortgage or an adjustable. Although for economists this is a very complex question, for the average borrower it boils down to consideration of two fairly simple questions, one factual and one emotional.
How much will closing costs be?
Closing costs can vary wildly from a few hundred dollars to several thousand. Keep in mind that even a “no closing cost” loan may require considerable out-of-pocket expenses on your part.
What factors determine the interest rate for a specific borrower?
Economic conditions determine whether interest rates are generally high or low for everybody but there are other factors which influence the interest rate for each individual.
What is LTV?
LTV stands for “Loan To Value” and is a term that is often thrown around by mortgage professionals because it is one of the key factors in determining the maximum loan amount and the interest rate. The LTV is simply the ratio of the loan amount to the value of the property. For example, if [...]
Mortgage Refinance Things to Know
Buying your home was probably one of the most significant financial decisions of your life. Now you are thinking about refinancing and, as when you purchased, you will have to live with the financial consequences of your decision for many years to come.
Is the Interest Deductible?
Generally, you can deduct the interest on home equity loans to a maximum of $100,000. If you are using your home equity loan to pay for educational or medical expenses, interest payments may be fully tax deductible regardless if the amount.