Mortgage Refinance - Which is Not the Right Time to Refinance?
It is known that all of us know when to go for a mortgage refinance but there are some situations that we have to take care
. These situations are explained in detail in the below paragraphs.
Situations, when refinancing does not make sense?
? When your property value has gone down: This situation can arise, when the market conditions are down. This is not the right time to refinance because the refinance amount that you get as loan will be lesser than the current loan amount that you have in hand.
? When your time period of repayment is long: If you are paying off your current loan, say for about 30 years of now. Again, you take a loan by mortgage refinancing for 30-year time periods, it is not going to make sense, and it is not the best option too.
? When all your equity has been used: If you have already used around 90% of your equity at home then, this is not the right time to get a new loan. The refinancing companies will not give you a low rate in such a case. You will get a rate that is higher.
? When you have just few days to repay the current loan: If you are in a situation like this, then you can go for some extra cash loans on your credit cards than getting a long term loan. If you get a long term long to pay down the current one then you will be losing money by paying the interest rates for a very long time.
Mortgage refinancing makes sense only when you have the right reasons and some equity.
Mortgage Refinance - Which is Not the Right Time to Refinance?