Q: Should
I refinance?
If you're
in an
adjustable
rate
mortgage,
you
may
want
to think
about
getting
a fixed-rate
mortgage.
Sometimes
it makes
sense
to refinance.
Sometimes
it does
not.
It depends
greatly
on your
individual
situation
and
what
your
financial
goals
are.
For
instance,
you
may
want
to lower
your
interest
rate
and/or
monthly
payment,
but
you
need
to ask
yourself
these
questions:
-
How long do you expect to be in your home?
-
How much equity do you have in your home?
-
Are you willing to pay points to get a lower rate?
-
Will having lower payments more than make up for the closing costs , fees and points if any?
Q. Should
I refinance
from
an adjustable
rate
to a
fixed
rate?
Generally,
it's
a good
idea
to get
the
lowest
fixed
rate
possible,
but
you
also
have
to consider
your
situation.
If you're
in the
first
year
of an
adjustable
rate
mortgage
(ARM)
and
you
plan
on moving
in three
years,
it probably
doesn't
make
sense
for
you
to refinance.
However,
if the
rate
on your
ARM
is about
to adjust
and
you
think
the
rate
will
go up,
then
it may
make
sense
to get
a long-term
