Mortgage rates refinancing are generally based on current interest rates, plus a small addition if you suffer from poor credit. If you financed your property when the APR is really high, then you should consult a mortgage calculator, and determine if refinancing will save you money.
More than likely if your interest is lowered on a loan then it is going to save you money, especially if you are unable to pay it off early. Depending on the amount of current interest you are paying you could save tens of thousands of dollars by switching to a new loan that charges less interest.
You may also have equity in your home that can be applied to help you receive the new loan, at the new interest rates. The biggest mistake people make when they make loans like this, is that they go to a bank, or another lending institution to ask for the loan, and if they are approved they accept whatever the bank charges them without questioning the rate. If the bank denies them the money, then they assume they cannot get a loan, and they continue to pay their original mortgage.
When you are denied a loan of this type you should smile nicely, and then shop somewhere else. Yes you are shopping, you are shopping for a loan that has the best interest rate for you, and the best terms for you. You do not rely on the answer from one bank about your finances.
You get answers from several banks. Each bank, or lender will have slightly different terms, or interest payments that apply to you and your situation. Interview them so you can decide who you will give your business to. Technology has given us the internet to use for comparison shopping. It is now so easy to do, we can check out different offers from different banks, while we sit in our pajamas having coffee on Sunday morning.
More than likely if your interest is lowered on a loan then it is going to save you money, especially if you are unable to pay it off early. Depending on the amount of current interest you are paying you could save tens of thousands of dollars by switching to a new loan that charges less interest.
You may also have equity in your home that can be applied to help you receive the new loan, at the new interest rates. The biggest mistake people make when they make loans like this, is that they go to a bank, or another lending institution to ask for the loan, and if they are approved they accept whatever the bank charges them without questioning the rate. If the bank denies them the money, then they assume they cannot get a loan, and they continue to pay their original mortgage.
When you are denied a loan of this type you should smile nicely, and then shop somewhere else. Yes you are shopping, you are shopping for a loan that has the best interest rate for you, and the best terms for you. You do not rely on the answer from one bank about your finances.
You get answers from several banks. Each bank, or lender will have slightly different terms, or interest payments that apply to you and your situation. Interview them so you can decide who you will give your business to. Technology has given us the internet to use for comparison shopping. It is now so easy to do, we can check out different offers from different banks, while we sit in our pajamas having coffee on Sunday morning.