You’ve bought your first home, and going through some big career changes. You recently got married, and now you’re thinking about starting a family in the next couple of years. As you go through all of these life changes, chances are high that you will move in the next five years or so. It could be across state lines, county lines, or just a neighborhood over. However, you don’t plan to be in your neighborhood for too long. If this describes you in any way, then refinancing is not right for you.
But, I Could Save Money!
Many people think that whenever their mortgage gets to be a little too much to handle, the simple answer is to look into refinancing. However, refinancing is not for everyone. If you don’t plan on staying in your home for at least two years, it’s doubtful you would even profit from refinancing.
Hopefully you have a flexible adjustable rate mortgage. If this is the case, you’re in better shape than having a fixed-rate mortgage that is hard to move around with. Just remember, if you’ve got this mortgage for a short run, refinancing isn’t going to help you much.
Closing costs are just the tip of the iceberg when it comes to all of the little fees associated with refinancing. When it’s all said and done, you really have to stick it out for a while as a homeowner before you get to reap the financial benefits of refinancing.
If you are concerned about foreclosure being in your future, and you don’t plan to stay in your current home for long anyway, forget refinancing, and get rid of the mortgage as soon as possible!