We all get to a point in our home ownerships where we begin to think that maybe we should refinance. The reasons to refinance can be to get lower rates, to gain more equity in the home, and to be able to pay off bills because the mortgage payment will be lower. With mortgage rates so low, many people will refinance and take that vacation that they have always dreamed of. So, is it a good idea to try to refinance or should a homeowner not do this? There are a few things that banks do not want you to know about refinancing your home. Lets take a look.
Do Your Research!
When you go to the mortgage company or bank to discuss refinancing, pay close attention. Even if you have to bring your spouse or friend with you. There are often times where we can sit in a meeting with others and miss some information being said to us. You need to be very informed about your own finances. Truth is, there are banks out there just looking make money and have no concern about your hardships. This is one of the biggest things banks won’t tell you when looking to refinance your home.
If you have questions then write them down and bring them with you. If you do not ask the questions about refinancing then no one is obligated to give you the information. The banks representative cannot lie to you but can withhold information. Ask the question, “Is refinancing something I should be doing right now?” Listen very closely to answer. How will refinancing save you money over the long run?
Read All Paperwork
When meeting the bank representative and the paperwork is being handed to you make sure you read it. Do not sign anything without reading all of the terms. There may be stipulations in there that have not been explained to you. There is nothing wrong with not signing paperwork right away. Taking your time and getting all the facts on the terms could end up saving you thousands and thousands of dollars. Once you sign the papers it is too late.
The thing to always keep in mind is that banks are in the business to make money. Although they may seem like the nicest people going (most are), they still need to be doing their jobs. If the bank does not make money then they will be out of a job. It is not always your welfare they have in mind.
As a consumer you need to be well-informed before even speaking with anyone at the bank. There is so much information available just on the Internet. Take the time to sit and read. As you think of questions write them down. Do not go into the bank like an uninformed, timid mouse.
Refinancing your home can be a great thing and save you thousands of dollars a month. Just always be sure that you go into the meeting with as much (or more) knowledge then the person you are meeting with.