REFINANCING YOUR HOME
As attractive as it seems however, cash-out refinancing (taking equity out of one’s home as part of re- mortgaging) can leave homeowners owing more than their homes are worth, should the market soften.Coupled with declining income levels and the fees incurred in the mortgaging process, refinancing may not always be a wise option. The bottom line? First, do your homework. Is refinancing appropriate for you? Is borrowing against your home, then spending the proceeds a good idea in the current economy? Second, become an informed consumer. If you decide to refinance, be aware that such fees as processing, under- writing, preparation of documents, appraisal, escrow, title insurance, credit reports, recording fees, tax service, will accompany the mortgage. Shop around--all mortgage lender are not created equal. Find out whose services will be most reasonable. And as always, consult your accountant for valuable insight on whether this is best for you. AMERICAN HERITAGE REALTY |
Enticingly low interest rates and rising home values, along with the prospect of increased savings, have given impetus to record numbers of homeowners refinancing their mortgages. A major factor in the current US economy, refinancing at lower rates has, for the most part, been accompanied by spending money--to pay debts, to supplement income, to purchase home furnishings, to make tuition payments, etc.
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