Mortgage Refinancing MistakesWhile 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 has to do with not comparing all the options by shopping around. You need to compare rates from a number of different lenders to get a good picture of what’s out there. Keep in mind too, sometimes a broker is limited to certain lenders.

Posted by Helaine Cohen on
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