Refinancing can be worthwhile, but it does not make good financial sense for everyone.
February 3, 2005 (Press Release) --
Refinancing can be worthwhile, but it does not make good financial sense for everyone.
The primary consideration is based on how long you plan to stay in the house.
Refinancing can be a good idea for homeowners who:
 Want to get out of a high interest rate loan to take advantage of lower rates. This is a good idea only if they intend to stay in the house long enough to make the additional fees worthwhile.
 Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.
 Want to convert to an ARM with a lower interest rate or more protective features (such as a better rate and payment caps) than the ARM they currently have.
 Want to build up equity more quickly by converting to a loan with a shorter term.
 Want to draw on the equity built up in their house to get cash for a major purchase or for their children's education.
If you decide that refinancing is not worth the costs, ask your lender whether you may be able to obtain all or some of the new terms you want by agreeing to a modification of your existing loan instead of a refinancing.
Should You Refinance Your ARM? In deciding whether to refinance an ARM you should consider these questions:
 Is the next interest rate adjustment on your existing loan likely to increase your monthly payments substantially?
 Will the new interest rate be two or three percentage points higher than the prevailing rates being offered for either fixed-rate loans or other ARMs?
 If the current mortgage sets a cap on your monthly payments, are those payments large enough to pay off your loan by the end of the original term?
 Will refinancing to a new ARM or a fixed-rate loan enable you to pay your loan in full by the end of the term?
If you live in Michigan and need assistance, please contact us.
CatholicMortgage.org
17199 Laurel Park North
Suite 315
Livonia, MI 48152
(248) 935-8355
http://catholicmortgage.org
Helping families live better lives….
Keywords: Catholic Mortgage Michigan Refinance Refinancing
The primary consideration is based on how long you plan to stay in the house.
Refinancing can be a good idea for homeowners who:
 Want to get out of a high interest rate loan to take advantage of lower rates. This is a good idea only if they intend to stay in the house long enough to make the additional fees worthwhile.
 Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.
 Want to convert to an ARM with a lower interest rate or more protective features (such as a better rate and payment caps) than the ARM they currently have.
 Want to build up equity more quickly by converting to a loan with a shorter term.
 Want to draw on the equity built up in their house to get cash for a major purchase or for their children's education.
If you decide that refinancing is not worth the costs, ask your lender whether you may be able to obtain all or some of the new terms you want by agreeing to a modification of your existing loan instead of a refinancing.
Should You Refinance Your ARM? In deciding whether to refinance an ARM you should consider these questions:
 Is the next interest rate adjustment on your existing loan likely to increase your monthly payments substantially?
 Will the new interest rate be two or three percentage points higher than the prevailing rates being offered for either fixed-rate loans or other ARMs?
 If the current mortgage sets a cap on your monthly payments, are those payments large enough to pay off your loan by the end of the original term?
 Will refinancing to a new ARM or a fixed-rate loan enable you to pay your loan in full by the end of the term?
If you live in Michigan and need assistance, please contact us.
CatholicMortgage.org
17199 Laurel Park North
Suite 315
Livonia, MI 48152
(248) 935-8355
http://catholicmortgage.org
Helping families live better lives….
Keywords: Catholic Mortgage Michigan Refinance Refinancing
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