When is a Good Time To Refinance?

The first thing you have to do is to evaluate the cost against the benefit of refinancing. You need to understand that while refinancing fees tend to be steep. If that is the case, refinancing may not be the best option at the time. No kidding that depending on the time, there are hefty fees that are often attached to refinancing.

Refinancing would not make sones unless you can get a better dea. Refinancing should not look a another loan. Keep in mind that many mortgage experts such as Jack M. Guttentag, Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania, and founder of GHR Systems, Inc., a mortgage technology company, will tell you that the safest choices are conventional fixed-rate mortgages or hybrid adjustable mortgages with long periods of stable monthly payments. He will also remind you that the great benefits of homeownership is building equity and wealth. That means that the more you pay down, the more your equity will increase. In other words, if you refinance every two or three years, you never get to build that equity. It is as if you were renting if did so. The purpose of homeownership is defeated in that sense.