QUESTION:
Dear Taxman – When should I refinance my home?
ANSWER:
Dear Reader – Refinancing becomes worth your while if the current interest rate on your mortgage is at least 2 percentage points higher than the prevailing market rate. Talk to several lenders to find out the current refinancing rates and what costs are associated with refinancing. Costs can include items such as appraisals, attorney’s fees, and points. Refinancing can be a good idea for homeowners who want to get out of a high interest rate loan to take advantage of lower rates or those who have an adjustable-rate mortgage (ARM) and want a fixed-rate loan in order to know exactly what the mortgage payment will be for the life of the loan.
“Ask The Taxman” originally appeared as a column in The Brunswick Citizen. All responses are written by Jim George, CPA. If you have a question for a CPA, contact us!