Mortgage interest rates have been all over the place in the past 30 days. One day they drop significantly and the next they are on the rise. If you lock in rates at just the right time, you may be able to time the market perfectly. Before you celebrate your interest rate reduction there are a few things to consider. A lower interest rate may not mean a lower monthly payment. While this sounds hard to believe it is often the case when you refinance. Getting the lowest possible interest rate is great but there are a few other items to consider. Before you start your refinance application here are some things you need to keep in mind.
If you are considering a refinance there are a few initial steps you should take. The first is to find a mortgage calculator online and run the numbers. Add your closing costs to your loan amount to find your new monthly payments. You should use a conservative interest rate with your estimate. The next thing you should do is to get an idea of current property values. Keep in mind that you will need an increased value on an investment property. If the numbers make sense and you think the value is there now may be a great time to refinance.