Is It A Good Time For You To Refinance? By J Suffie At Isnare.com Ezine Articles

If you're like a lot of people nowadays, you may not be sure if it's a good time to refinance. Here are five signs to look for that may indicate that refinancing is right for you.

You have an Adjustable Rate Mortgage – As many people have discovered, a low "teaser" rate is only asking for trouble later on. If you have an adjustable rate mortgage that is getting ready to be increase, refinancing to a fixed rate mortgage will probably give you a better financial picture in the short term as well as in the long term. Even if your mortgage payments don't go down initially, your mortgage payments will be stable over the life of the loan, and you will be able to budget your money more effectively.

You Have Equity in Your Home – If you are among the people who didn't buy into the real estate market when everything was overpriced, you're probably sitting on a little bit of equity right now. You have probably been watching what people have been going through on the news, and maybe even among your friends and family. You know how careful you have to be when pulling equity out of your home. If you are selective with how much money you take out of your equity and use it wisely, you can avoid having regrets down the road.

You Have a High Interest Rate on Your Current Fixed Rate Mortgage – Right now, mortgage interest rates are low. If your fixed rate mortgage is two percentage points or more higher than current interest rates, refinancing in order to get the lower interest rate can make a huge difference in your monthly mortgage payment.

You Make a Decision to Stop Being a Slave to Your Credit Cards – If you are like a lot of people who have gotten stuck in the credit card trap, now that the cards are all maxed out, you can see how it works. The easy money of a credit card has turned into the payments stretching out for years. The payments you're paying today are for things that you probably don't even remember, and sometimes don't even own anymore. By refinancing, you can pay off your credit card debt and finally be done with it.

Your Child is Going Off to College – After a lot of hard work and a successful high school career, all that stands between your child and a college education is the money. Even with scholarships and grants, most college students need additional money for living expenses and transportation. By refinancing and using that money to help your child with college expenses, you can allow your child to focus on his studies rather than trying to carry a full course load and hold down a job at the same time. If you have built up equity in your home over the years, refinancing in order to help pay for your child's college education can end up being one of the best investments you ever make.

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