Welcome to Universal Wealth Creation.com

This site have been developed as a resource for people

searching for the best ways to create wealth and increase the

quality of their lives. Inside you will find reviews of the latest

Investment strategies available.

Wealth Creation

Home Page

Wealth Creation

Wealth Finance & Property Articles

Beware The Hidden Costs of Refinancing
By: Glen Hooke

With so many homeowners refinancing, it is tempting to jump on the bandwagon, especially with the current low interest rates and appealing offers that are popping up all over the place. While in many situations refinancing can be a wise choice, it is important to note that it is not without its own costs.

Some refinance companies charge an application fee to begin the application and refinance process. This is an upfront cost that is never rolled into the new loan amount and must come out of your personal funds. There are lenders who do not charge application fees, and some of the lenders who do often run promotions where the application fee is waived.

You might remember when you bought your home and took out your mortgage, there were costs and fees involved that you had to pay. When you refinance, those same fees and costs must be paid all over again, though they can sometimes be rolled into the new mortgage. If you don’t think that you are paying for things like settlement costs and points, think again. Even if you don’t have to bring cash to closing, the lender has probably added these costs into the term of your loan. Be sure to check and see exactly how much they are charging you and how much money for these expenses is being rolled into your new mortgage balance. To have a lower monthly payment, you are going to wind up paying more points. To pay lower points you are going to need to make a higher monthly payment.

Another possible cost that you have to be aware of when you are considering refinancing is whether or not you have an early payoff penalty on your current mortgage. Sometimes these fees can be steep, making it pointless to refinance if the fees exceed the amount you will be saving by refinancing in the first place.

While there are costs involved with refinancing, in the majority of cases, it still pays off in the long run. Refinancing can save a homeowner tens of thousands of dollars - a rather large sum compared to the amount spent on refinancing.

Written by Glen Hooke

About the author:
** Attn Ezine Editors / Site 0wners **
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include our resource box as listed below.

Discover how you can get out of that 30 year mortgage, pay off your home in 10 years (or less) without refinancing or changing your mortgage…. and build equity in your home ten times faster than you ever thought possible……
Visit: http://www.BeMortgageFreeSooner.com

Want to sell your home for more, (or buy your next home for less) without being trapped, taken advantage of, manipulated or ripped off by slick real estate agents……Visit: http://www.InsidersRealEstateSecrets.com

Circulated by Article Emporium

http://www.universalwealthcreation.com Wealth Creation | Financial Wealth

Copying or republishing this article is permitted with this footer included

Collect a Free 260 page ebook here: Universal Wealth Earn up to $1,000 per referral: Wealth Creation Affiliate

These property, finance, stock market & business articles have been supplied in the interest of Universal Wealth Creations visitors who want to expand their knowledge in the wealth creation & investment fields. All the business, finance, stock market & business articles have not been read as they are submitted remotely, so if you find any questionable facts in here or simply do not like it, please email webmaster@universalwealthcreation.com and we will review the material. As we find time to do so, we will go through all articles and remove any that appear not suitable. Other sites we recommend here at Universal Wealth Creation are: 21st Century Academy with Jamie McIntyre, Investor Finance, Universal Trading Solutions which promotes great wealth creators like: Kim Reilly, Simon Martin, Justin Beeton, Louise Bedford, John Kaye, Daniel Kertcher & more. They run great seminars across the country. At times we will publish dates for these seminars as they are made available around the counrty. Meanwhile, there is a great opportunity to learn about the finance, stock market & property investment field through reading these kind of articles. Learn about share trading, options, futures, CFD's, derivatives, warrants, indices & more in the stock market. You will also learn plenty about business, finance & property investing through authors opinions in the marketplace. Enjoy your journey towards financial freedom. We hope you will enjoy your visit.

Regards Sean Rasmussen - Universal Wealth Creation Pty Ltd

Site Map

Return to Index
Return To Universal Wealth Creation Home Page