{"id":1635,"date":"2009-12-30T14:46:37","date_gmt":"2009-12-30T09:16:37","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=1635"},"modified":"2009-12-30T14:46:37","modified_gmt":"2009-12-30T09:16:37","slug":"the-pros-and-cons-of-refinancing","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/the-pros-and-cons-of-refinancing\/","title":{"rendered":"The Pros and Cons of Refinancing"},"content":{"rendered":"<p>Refinancing is essentially a replacement loan, with a different lender and (hopefully) a lower interest rate.<\/p>\n<div id=\"_mcePaste\"><\/div>\n<div><\/div>\n<div><strong>So why would you choose to refinance?<\/strong><\/div>\n<div id=\"_mcePaste\">&#8211; You may be able to take advantage of lower interest rates.<\/div>\n<div id=\"_mcePaste\">&#8211; You may also be able to extend the repayment period of your mortgage. While you will end up paying more in interest charges for this, this will reduce your monthly outgoings.<\/div>\n<div id=\"_mcePaste\">&#8211; You may be able to switch from a variable rate to a fixed rate mortgage, giving you greater security in the future from potential rate increases.<\/div>\n<div id=\"_mcePaste\">&#8211; You may also be able to increase the amount of your mortgage, to pay off other, higher interest rate liabilities such as credit card debt, cell phone debt and personal loan debt. This will enable you to save money on interest rate charges<\/div>\n<div id=\"_mcePaste\"><\/div>\n<div><\/div>\n<div><strong>Why would you avoid refinance?<\/strong><\/div>\n<div id=\"_mcePaste\">If you decide to borrow more than your existing mortgage, you need to be wary of your budget. If you default on your payments you run the risk of losing your house.<\/div>\n<div id=\"_mcePaste\">If you do not calculate the costs involved with refinancing correctly, you could end up paying more in interest charges.<\/div>\n<div id=\"_mcePaste\">Thoroughly review the contract of your existing loan, an early pay out could involve a penalty that would negate the benefits of refinancing.<\/div>\n<div id=\"_mcePaste\"><\/div>\n<div><\/div>\n<div><strong>What will it cost me?<\/strong><\/div>\n<div id=\"_mcePaste\">Refinancing does carry some costs that you need to be made aware.<\/div>\n<div id=\"_mcePaste\">Valuation Fee \u2013 This is the fee for a professional appraisal of the value of your house.<\/div>\n<div id=\"_mcePaste\">Credit Report \u2013 An assessment of your credit health<\/div>\n<div id=\"_mcePaste\">Escrow \u2013 Fee for money transferred by a third party.<\/div>\n<div id=\"_mcePaste\">Lender Fees \u2013 Any other fees that are incurred by using a particular lender<\/div>\n<div id=\"_mcePaste\">Am I eligible?<\/div>\n<div id=\"_mcePaste\">Applying for mortgage refinance is just like applying for another loan. There is a set criteria for acceptance. Every missed mortgage payment will count against you in the application, either resulting in a greater interest rate or a refused application.<\/div>\n<div id=\"_mcePaste\"><\/div>\n<div><\/div>\n<div><strong>Should I choose refinancing?<\/strong><\/div>\n<div id=\"_mcePaste\">You will need to assess your current mortgage and the changeover costs and savings to ascertain whether it will be of benefit to you. There are specific refinancing calculators that can help you determine the net gain. The best one that I have found is here calcbuilder.com<\/div>\n<div id=\"_mcePaste\">As a rule of thumb many lenders advocate that a 1% gap between your current interest rate and a refinance rate makes refinance a worthwhile option. Always make sure to speak to a financial professional before deciding to refinance your mortgage.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Refinancing is essentially a replacement loan, with a different lender and (hopefully) a lower interest rate. So why would you choose to refinance? &#8211; You may be able to take advantage of lower interest rates. &#8211; You may also be able to extend the repayment period of your mortgage. While you will end up paying [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[4753,4754,4755,4756,4752,1258,4757],"class_list":["post-1635","post","type-post","status-publish","format-standard","category-general","tag-advantages-of-revinancing","tag-disadvantages-of-refinancing","tag-interest-rates-on-refinancing","tag-refianacing-my-mortgage","tag-refinance","tag-refinancing","tag-refinancing-the-mortgages","entry"],"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=1635"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1635\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=1635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=1635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=1635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}