TIPS FOR REFINANCING
* Use a refinancing to reduce monthly payments, consolidate debt, tap built-up equity or switch mortgage products.
* Shop around among brokers and lenders to find the best deals or seek a "loan modification" from your current lender.
* Don't be stopped by the traditional rule that borrowers must reduce their current rate by at least 2 percentage points to benefit.
* Consider how long you plan to stay in your home to help determine when - or if - you will save money.
* Consider the impact of closing costs, which include appraisal, title research, title insurance, credit check, attorney review, inspection fees and transfer taxes. Some costs could include loan points - one point typically equals about 1 percent of the amount you borrow.
* Consider that most lenders will let you borrow about 80 percent of your home's current appraised value.
* Calculate estimated savings and costs using an online calculator, available through sources such as bankrate.com or hsh.com.
Source: HSH Associates; Adam Financial
Associates Inc.
