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When not to Refinance | Refinance mortgage help

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When NOT to refinance

Sometimes refinancing just simply isn't a great idea. While it may seem like a tempting offer, changing your loan under certain circumstances just wont be a good financial move.

Refinancing May Not Be the Best Choice if: Reasons NOT to refinance

You have already paid off the majority of the mortgage. The closing costs will swallow up any savings made in lower interest rates.

The home value has fallen. Any new loan might not be able to pay off the existing loan if values have fallen.

As a home owner, you have already used up much of the home equity. If you have already used more than 90% of the home's value on other things, such as other investments, then you wont be able to use equity as a bargaining tool when refinancing. Lenders will simply see that there is not much equity in your property.

You simply want the cash to pay off other debts. Using refinancing as a way to pay off credit cards is never a good idea. You simply put your home at risk and turned what is supposed to be a short term debt, into a long term debt.

You only have a few years left on the loan. If this is the case then there is often no point in refinancinfg. You have been paying off a 30 year loan, and are 20 year in with 10 to go. Refinancing now could increase the length of the loan due to the length of the new loan.

As with any financial decision, it is a good idea to talk through your options with a professsional. In this case, a local mortgage broker can help you so call

or submit your details on line.

Talk to a refinance expert that understands how to get you onto a better deal. Real help from real people.

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