Refinance Information

Should you refinance your home mortgage? That's a question many homeowners ask when lower mortgage rates become available.

The answer depends on many factors, including your tax bracket, the length of time you plan to stay in your home, and the additional costs and charges you must pay for the refinancing. A Challenge consultant will be able to help your make the right choice when considering a refinancing option.

Refinance Costs
Refinancing your home costs money. There can be just as many costs as involved as when you purchased, and remember, zero cost mortgages involve a higher than market rate that will cost you more in the long run.

Lower Your Rates
The most common reason to homeowners consider refinancing is to lower their current interest rate. it is wise is to lower two points, but even one point can make it worthwhile.

Refinance Costs
This can vary depending on what interest rate you want to refinance at. If it is lower than market rate, you may have to pay discount points.

Consider Other Options
When refinancing, be sure to look at different options. Often, it is a good time to get a shorter term loan with a lower rate that will knock years off the mortgage with little or no increase in payment.