Everybody is talking about refinancing their home loan, but is it good for you?
Here find good reasons why you should or you should not refinance at this time:

Its a good idea to refinance when...   www.CGHouses.com

  • You will lower your monthly payments by reducing the interest rate and/
    or the loan terms.
  • You will get the cash you need to start a new business, buy a second
    home, fund your kids college, remodel your home adding value to it, pay
    off all those high interest credit cards, consolidate your bills and avoid
    bankruptcy
  • Remove co-signers from the loan.
  • You have an emergency and have enough equity to borrow money on
    your home rather than using your high interest credit cards (don't forget
    that in most cases the interest you pay on your home is tax deductible!)
  • You have an adjustable (variable) interest rate that is about to go up and
    you want to get a fixed rate instead or a new low ARM rate.
  • You are getting divorced. Sometimes is more convenient for one of the
    spouses to refinance, give the other spouse his/her fair share of the
    equity and keep the house, specially when there are children involved,
    it's less stressful for them to stay in the same home.
  • You are planning to stay in your home.
  • You are in a bad loan due to your past bad credit, (interest only, option
    plan, temporary fixed that soon will change, sub-prime, etc.) but your
    situation got better and you want to take advantage of the good new loan
    programs and low interest rates available today.
  • Your income is stable, your credit history is good and you can afford to
    switch to a bi-weekly program or to reduce the number of years of your
    loan to pay off your mortgage sooner.

You should not refinance when...  www.CGHouses.com

  • When refinancing, you will use the money from your equity on a vacation
    trip or just to go on a shopping spree and your monthly payment will be
    higher than before.
  • Your FICO score is low (bad credit) and you won't get the low interest
    rate you want. Lenders assessed interest rates according to their higher
    or low risk and they base that decision on your credit history.
  • Your home doesn't have enough equity and you will have to borrow over
    the value of it. (In this case you need to evaluate carefully whether or not
    you must refinance anyway)  
  • You are planning to sell your home within the next 6 months.    
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INTEREST RATES
ARE LOW
Now is the best
time to buy a
home or to
Refinance to a
better loan.
Californi
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