Should you refinance?

By Peter Daas

Interest rates worldwide have dropped to all time lows. The national average interest rate for a refinanced mortgage in the US is around 5.5% right now. For homeowners, this means they could be saving serious money by refinancing right now.

Living conditions can be improved by refinancing and oftentimes, improvement of living conditions is in fact the goal of refinancing a mortgage. The money that is freed up can be used for a variety of purposes or financial goals. It can also be used to invest back into the house, by buying home improvement and increasing the value of the house.

These days, houses are not selling all that quickly. A couple of home improvements could mean the difference between selling and not selling at all. Also, if you are planning to sell at a later time, your house will increase in value because of the home improvement. Using money freed up by a refinance to buy home improvements could be a smart decision.

The process of refinancing can best be handled by an expert. Don't choose your lender based purely on the lowest rate, but look at the best mortgage for your situation. Choosing the right kind of mortgage will make you debt free, choosing the wrong type of mortgage will get you in trouble down the road.

About the Author:

Peter writes articles about mortgages in English. He writes articles about hypotheek tarieven and beleggingshypotheek oversluiten in Dutch.