Refinance
Maine Home Refinance Loans
Refinance at the Right Time - Prior to deciding to refinance a mortgage loan, Maine homeowners have to consider a few factors. Knowing the right time to refinance a home loan is not easy. Since rates declined a few years ago, the pressure to refinance has intensified. Homeowners are constantly solicited with offers, and advertisements urge homeowners to take advantage of their increased equity before it is too late. However, the decision to apply for a new home loan should be based on the following factors.
Costs of Refinancing - A mortgage refinance is expensive. With this said, there are closing costs and other fees that are paid before settlement. Some Maine lenders offer “no-cost refinance loans”. However, this simply involves including the settlement fees in the mortgage loan. Homeowners are still responsible for these fees, but not required to pay them out-of-pocket. Not everyone will qualify for a no-cost refinance. Therefore, individuals selecting a refinance should have a cash reserve for expenses.
Costs vs. Savings - How long do you plan to stay in the home? A refinance primarily benefits homeowners who do not plan to sell the property. Because of refinancing expenses, it does not make sense to pay closing costs, and then move 12 months later. A mortgage lender can provide a break-even table. This table indicates how long you would have to remain in the property to break-even or recoup the closing costs.
