Through the years and two different homes, I have refinanced three times. It is rather stressful, but not nearly as difficult to deal with as the original loan. The refinance is mostly just paperwork, and money exchanging hands, from yours to everyone else involved in the loan process.
The first refinance was because I had an adjustable rate mortgage and the rates was going up quite high.
The next one was for a better interest rate, and also to take some equity from the value of my home for updating and repairs.
After that I relocated to the state I live in now, and while my interest rate was okay, when the rates went way down, I had to take advantage of the new lower rate and pay off some bills that I had acquired.
Usually when you are considering a refinance, there is a very good reason, either to buy another piece of property, purchase something else, or perhaps to update or remodel your current home. Whatever the reason, it is always an experience to have your credit checked out. You discover old charge cards that you did not remember opening because you haven’t used them, you find errors or questions on your credit report, mine was 7 pages long!
I had the best lender for the last refinance. He was quite attentive to detail, kept me in the loop and helped me clean up my credit report and get rid of nonessential credit cards.
I cancelled and closed some accounts as I had some quite high credit limits. That is not a good thing to have as the lender can get nervous that you will go max out all the charge cards and then default on them as well as the mortgage.
Did you know they fight to keep your accounts open, whether you are currently using them or not? They will try everything to keep the account open, even to offering a lower interest rate and great deals if you will keep the account open.
With my low interest rate and the cost involved in refinancing, I do not wish to refinance again but it did help me out of tight situations in the past.
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