Real Estate Guide

Your Mortgage - Questions and Answers
'Refinancing Your Loan'

• When is the best time to refinance?
• Where do I get information on refinancing?
• What is the Home Affordable Modification Program?
• Can I refinance after bankruptcy?
• What about these ads for no-cost loans?

When is the best time to refinance?

It depends on how long you plan to hold on to your house and if you have to pay anything to refinance. In addition, it also depends on how far along you are in paying off your current mortgage. If you are going to be selling your house shortly, you probably will not recoup any costs you incur to refinance your mortgage. If you are more than halfway through paying your current mortgage, you probably will gain little by refinancing.

However, if you are going to own your home for at least five years, that's probably long enough to recoup any refinancing costs you incur and to realize real savings on lowering your monthly payment. If it is going to cost you nothing to refinance, you can gain even more. Many lenders will allow you to roll the costs of the refinancing into the new note and still reduce the amount of the monthly payment. Also, there are no-cost refinancing deals available.

In any case, it pays to consult your lender or financial advisor, or run the numbers yourself, before you refinance.

See Also >> Financial Calculator #9 - Am I Better Off Refinancing. 

Where do I get information on refinancing?

For information on refinancing, the following booklet may be helpful:

• "A Consumer's Guide to Mortgage Refinancing;" Federal Reserve Bank of San Francisco, Public Information Department, P.O. Box 7702, San Francisco, CA 94120; call (415) 974-2163 to order.

What is the Home Affordable Modification Program?

In March of 2009, then President Obama, initiated the 'The Home Affordable Modification Program' as part of the so-called 'Stimulus Bill of 2009.' The program is designed to provide relief to homeowners in danger of foreclosure due to unaffordable or rising monthly payments by giving lenders incentive to refinance.

See >> Real Estate Guide: Owning Your Home - Foreclosure, Home Affordable Modification Program

Can I refinance after bankruptcy?

See >> Real Estate Guide: Your Mortgage - Bankruptcy, Can I refinance after bankruptcy?

What about these ads for no-cost loans?

See >>  Real Estate Guide: Your Mortgage -  No-cost or No-fee Loans