Looking to Refinance my home loan….Is it a good idea?
I want to refinance, because of course, to get a lower interest rate and to have a lower monthly payment. (And now seems like the right time to do so). Right now, I have someone helping me paying my mortgage, but in a worse case senerio, if they leave, and if I don’t find a better paying job soon….u know where that could lead me, right? Anyhoo, before doing so, I did a little research and had a few questions in mind.
1) Is refinancing your loan like starting over, only with the currently amount you owe vs. the amount you purchase your home for over another 30 year stretch?
2) Also, I have an MIP on my loan, will this still exist if I refinanace again?
3) Are there any closing fees/any other hidden fees that exist during refinancing?
My current interest rate is 6.5%. I spoke with a friend and hers is 4.2%. Not bad at all. Anyhoo, refinancing sounds good, but it seems to me there are a few consequences. I plan on staying in my home for at least a good 10years or so…and also, the property value of the homes in my county are about to drop yet again. Is this another good reason to refinance, ’cause it seems to me that the loan amount that im paying now isn’t even worth/the value of my home.
As Always, Thanks!!!!