Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Refinance Tips and other Mortgages topics.
Is a refinance loan right for you? Lower monthly payments are attractive. But they come at a price. Weigh your options before you make a decision.
* You may be able to lower your interest rate, but refinancing may increase your principal amount.
* Whether it's a good idea to refinance may depend on how long you plan to own our home.
If you plan to stay in your home for a while, refinancing may make sense, because of the cost savings of lower interest over several years. If you plan to sell your home soon, the cost to refinance may be prohibitive.