Austin Real Estate Blog

A look at your bank account followed by a dreamy walk through the mall or an examination of a travel brochure, may inspire you to start saving some money. You’ll list your options in your head, determining what is feasible and what is not. When you think of refinancing, you’ll think “why not?” The rates are lower than they have been in years. Refinancing could save you money and secure you a great deal. Before you rush to your lender, know that your reasons for refinancing are far from advisable.You should never refinance so that you can go on a trip, buy a new bag or pair of shoes, or even secure a tax deduction. You should refinance so that you can get out of debt, pay off your credit cards or avoid going default on a loan. If one of those is your reason, the decision to refinance is easy. You should act immediately and get into a fixed-rate program while the rates are down.

Unfortunately, the process isn’t always as easy as the decision. A zero-cost refinance is the most desirable, but it won’t always secure you the best rates. If your home has been listed for sale before, lenders may not be willing to refinance it at all. Thus what you have to do, as with anything, is plan. Determine first if you should refinance and if you can do so without lengthening your loan; then figure out who and what will put you in the best program. How can you save money in the long run? That’s the most important question. You want not a pair of shoes but the ability to stay above the water should the economy falter and refinancing can help you do that, if you go into it with the right motivation.