How to Refinance a Mortgage

Video Transcript

"Refinancing your mortgage is often a good decision and can save you some money in the long run. I'm Richard Blake in Clearwater Florida. I'm here to explain how you can refinance your mortgage. There are a couple different reasons why someone may want to refinance their mortgage. Some of the most common would be if you currently have a arm mortgage, meaning that you're at an adjustable rate and that rate is about to go up much higher than what the current interest rates are or you just may have purchased your home or financed at a time when interest rates were much higher than what they are today. Generally you are going to want to make sure that you are going to get an interest rate of at least one percent lower than what you are currently paying in order for it to make sense in the long run. Contact your lender, your bank ask them what the refinancing fees are and then compare those fees of; in comparison to how much you're going to save with that lower interest rate over ten year period of time or however you actually plan on living in the home. If your bank is unwilling to help you or if they're costs are substantially high contact a local real estate broker or I'm sorry a local mortgage broker. They are going to be able to shop larger refinancing programs for you rather than just your bank who will only shop their own specific programs. The mortgage broker is going to be a; generally going to be able to get you better rates over a longer period of times, so you may want to consider speaking with a local mortgage broker as well. I'm Richard Blake in Clearwater Florida. I hope that gives you a few pointers on how you can refinance your mortgage. Thanks and have a great day."