Welcome to my site on Mortgage Refinancing.  I hope to be adding information on a daily basis so if you do not find the information you need, please come back and visit us soon.  If you have feedback or a topic you would like to see information posted on, please send me an email.

There are several things you should consider when thinking about refinancing your mortgage.  But first you should know some basics about mortgages.  There are many types of mortgage loans, and many different ways to put together the right refinancing plan for your situation.

Type of Mortgage Loan:

First, you should consider the ‘type’ of loan you want to have.  There are a few main types to consider.  There are Fixed Mortgages, Variable (Adjustable) Mortgages, Balloon Loans, as well as a few others.  You can read more about loan types and which one is right for you [here].

Length of Mortgage Term:

There are typically 4 terms being offered for mortgages nowadays.  They are 15 year, 20 year, 30 year, and now there is even a 40 year term available through some lenders.  These terms are the standard terms for the Fixed and Adjustable mortgages.  Other types of loans, such as Balloon Loans have different terms, such as 3/1, 5/1, or 7/1.  Read more about loan terms and the pros and cons for each.

Interest Rates:

This one is what people tend to focus on and it should be.  The rate determines the amount of interest you will be paying each month and ultimately your total monthly payment.  With shorter terms, you will get a much lower rate, mainly because there is less uncertainty in the economy for a 15 year term than there is for a 30 year term.  That uncertainty increases risk for the lender and therefore increases the return they require.  Read more about rates.

Points/APY/Fees/PMI:

Points, APY, and fees are another important factor to consider.  These are related to the amount of principal you will need to borrow in addition to your home value, or could be the amount of cash you must produce at the time the loan is closed.  The amount borrowed could put you at an amount that would require Private Mortgage Insurance (PMI), which would add to your monthly payment.  Read more about these factors to avoid unnecessary payment increases.