Mortgage Refinancing - Be Cautious

As mortgages hit new lows, people are left wondering whether they can refinance their homes.  Those who have seen their home values plummet to where the mortgage is 80% to 100% of the home’s value, most likely don’t have enough equity to refinance their home.  Under current government controlled giants Freddie Mac or Fannie Mae, President Obama has announced a $275 billion plan that would allow you to refinance your debt with the help of the government.  Thirty-year fixed rates are averaging just under 5%, with fifteen-year fixed rates down to almost 4.5%.  It’s worth exploring. However ……………

 A few things to remember when refinancing:

 

·        If you have recently refinanced, remember that you can write off any points that you paid at the time you did this.

 

·        You don’t want to pay a lot of points which brings up your average borrowing cost, or refinance too close together.  Nevertheless, you might want to explore this refinancing arrangement.