Castle Appraisal Services Plus
Refinancing
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Castle Appraisal Services Plus
Refinancing
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Refinancing
An appraisal is the basic requirements for obtaining a mortgage loan, but it's also proving useful to some home owners who want to lower their monthly payments, use the equity in the home or consolidate debt. The purpose of a refinancing loan is to pay off your current mortgage with a new loan at a lower rate and/or with a shorter term of repayment. Some homeowners don't consider refinancing their mortgage because they fear that it may be too much of an aggravation for the money they may save. Other homeowners simply get into the habit of paying their mortgage payment every month and simply do not consider refinancing. Consider refinancing your mortgage if you can get a rate that is at least one percentage point lower than your existing mortgage rate and if you plan to keep the new mortgage for several years or more. Calculate how much your new mortgage (including up-front fees) will cost and whether, in the long run, it will cost less than your current mortgage. One way of saving on refinancing fees is to check first with the lender who holds your current mortgage. The lender may be willing to waive some of the fees, especially if the work relating to the mortgage closing is still current. Home Equity
uses the equity you've built up in your
home. In addition, the interest on home equity loans, since it is considered
mortgage interest, will probably be tax deductible (there are limits to the
deductibility, though. For example, if your loan value is in excess of the value
of your home, the excess amount will NOT be tax deductible). Some common uses of
home equity loans include home improvement, education costs, automobiles and to
consolidate higher interest rate loans and credit into a single payment that may
be tax deductible, instead of loans or expenses that do not have tax
deductibility. If you are looking to refinance your home, the lender will probably require an appraisal to determine what your home is really worth.
Please contact the
Castle Appraisal Services Plus professionals today for more
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