Should you refinance your mortgage? - FOX 10 News | fox10phoenix.com

Should you refinance your mortgage?

Posted: Updated:
ATLANTA -

With mortgage rates at historic lows, it has many people thinking about refinancing. Cutting your mortgage payment down sounds like a good idea, but, refinancing is not for everybody.  

A 30-year fixed rate right now is about 3.5 percent.  A 15-year fixed rate is 2.75 percent. Do you get in there and take advantage of that so that you can lower your mortgage payment? Perhaps, but to qualify you'll still need a steady income, good home value and great credit.

According to Bankrate.com, you can't qualify for the low rates unless your credit score is high -- in the 700 range.  This is the perfect example of why you have to work to get your score up. If you have a conventional loan, in order to refinance, your home needs to have about 20 percent equity. You cannot owe more than the home is worth.

Refinancing saves you money on your monthly payment, but be aware that you have to pay closing costs.  It's no deal if you don't stay in the house long enough to recover those costs, so do some math and figure out how many months of lower payments it will take to make up your closing costs.

If you owe more than what your home is worth, you do have some options if your loan is owned by Fannie Mae or Freddie Mac. There is a program called HARP -- the Home Affordable Refinance Program.  You still have to have decent credit and a steady job history, but they'll work with you. Go here for more details -- www.knowyouroptions.com

  • I-Team Story ArchiveMore>>

  • Control your debit or credit card by remote control

    Control your debit or credit card by remote control

    Wednesday, August 20 2014 8:35 AM EDT2014-08-20 12:35:26 GMT
    Oh, that awful feeling when you think your credit or debit card is safely tucked into your wallet, but it's still shopping. Somebody, somewhere has got your card number and is using it. What if you could turn off that card?
    Oh, that awful feeling when you think your credit or debit card is safely tucked into your wallet, but it's still shopping. Somebody, somewhere has got your card number and is using it. What if you could turn off that card?
  • Reality TV Star Todd Chrisley faces tough questions

    Reality TV Star Todd Chrisley faces tough questions

    Tuesday, August 19 2014 10:58 PM EDT2014-08-20 02:58:47 GMT
    It's one of the hottest reality TV shows in the country and it stars an Atlanta millionaire.It's called "Chrisley Knows Best" and Todd Chrisley is the flamboyant lead.But Senior I-team reporter Dale Russell has been digging through court records and says "reality" means something different to people who have done business with Chrisley.
    It's one of the hottest reality TV shows in the country and it stars an Atlanta millionaire.It's called "Chrisley Knows Best" and Todd Chrisley is the flamboyant lead.But Senior I-team reporter Dale Russell has been digging through court records and says "reality" means something different to people who have done business with Chrisley.
  • Save money by grocery shopping at the right time

    Save money by grocery shopping at the right time

    Monday, August 18 2014 1:14 PM EDT2014-08-18 17:14:49 GMT
    Here's the sure fire way to stay on budget at the grocery store: Plan your menu in advance, make a list then stick to it. So how is it that you're still spending more than you should and ending up with less than you need? Because too many of us shop at the wrong time.
    Here's the sure fire way to stay on budget at the grocery store: Plan your menu in advance, make a list then stick to it. So how is it that you're still spending more than you should and ending up with less than you need? Because too many of us shop at the wrong time.
  • Contact the FOX 5 I-Team

    * denotes required fields

    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thanks for contacting FOX 5.  To reach our newsroom by phone, please call (404) 898-0100.

Powered by WorldNow

KSAZ-TV & KUTP
511 W. Adams St.
Phoenix, AZ 85003

Phone: (602) 257-1234
Fax: (602) 262-0177

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices