While mortgage rates are currently at an all-time low, if you’re considering refinancing you need to be wary of some common mistakes.
Mistake #1- Just the rate
The first mistake has to do with just considering the rate. While a rate may look low you also have to factor in whether you’re being charged more in mortgage points to gain that rate.
Mistake #2- Mortgage extensions
Another mistake comes into play if you’re considering whether to extend your mortgage. If you’ve already made payments for five years you may want to consider refinancing with a 25-year loan instead of a 30-year loan. Even with a reduced interest rate, a longer loan likely means you’ll pay more in interest charges.
Mistake #3- Not comparing options
The final mistake…