It’s hard not to hear about low rates in the news. You may be wondering if you should jump on the bandwagon and take advantage of today’s market fluctuations. Here are a few questions to consider (and ones we’ll ask you) to help determine if a refinance is the best plan of action:

When did you buy your home? What was the purchase price? These questions will help you assess the value and appreciation.

How much did you initially borrow, and what’s your current loan balance? This will determine the new loan-to-value ratio, and assess whether or not private mortgage insurance will be required.

Do you have an ARM due to expire, or a special purchase that requires cash-out? This will determine the timing of your transaction.

Do you have a second mortgage? Having another lien against your property affects the first mortgage. It must be combined with the first mortgage, paid off, or subordinated.

How’s your credit? Your credit health will determine rates available to you.

How long do you plan to stay in your home? This will help determine whether the cost of a refinance will be offset by the time spent in your home.

Related Articles: Refinance, Summer 2010 Newsletter