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Refinancing - Q & A
| Q: |
When is the
best time to refinance? |
| A: |
The
traditional answer to that question is when interest rates fall 2
percent below your current mortgage interest rate. However, in recent
years some experts have argued that refinancing may be appropriate with
a smaller point spread.
Some weight is often given to the length of time the owner
anticipates holding on to the property. If the owner expects to keep the
property for at least three or four years, then refinancing may be
worthwhile.
While refinancing can involve upfront costs, in many cases it is
possible to roll the costs of the refinancing into the new note and
still reduce the amount of the monthly payment.
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| Q: |
Where do I
get information on refinancing? |
| A: |
For
information on refinancing, the following booklet may be helpful:
* "A Consumer's Guide to Mortgage Refinancing;" Federal
Reserve Bank of San Francisco, Public Information Department, P.O. Box
7702, San Francisco, CA 94120; call (415) 974-2163 to order. |
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| Q: |
Can I
refinance after bankruptcy? |
| A: |
Refinancing
may be prudent but could be difficult after a bankruptcy. If you're
considering bankruptcy, you may want to go to your current lender first
and explain the situation. If you have been current on your payments,
the lender may be accommodating and refinance your loan, easing your
financial situation. |
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Copyright 1999 Inman News Features
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