What will it cost me?

Refinancing does carry some costs that you need to be made aware.

Valuation Fee – This is fee for a professional appraisal of value of your house. Credit Report – An assessment of your credit health Escrow – Fee for money transferred by a third party. Lender Fees – Any other fees that are incurred by using a particular lender

Am I eligible? 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 application, either resulting in a greater interest rate or a refused application.

Should I choose refinancing? You will need to assess your current mortgage and changeover costs and savings to ascertain whether it will be of benefit to you. There are specific refinancing calculators that can help you determine net gain. The best one that I have found is here calcbuilder.com 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.