When Should You Not Refinance Your Home
Kachi Realty
When Should You Not Refinance Your Home
When Should You Not Refinance Your Home
Many people look to refinancing as a method of reducing monthly payments, taking advantage of low interest rates, pulling equity out for repairs and remodels, or consolidating first and second mortgages. And while refinancing can be a wise move, it’s not always the right time to make that move. Here are some instances in which you should avoid refinancing.
If You Plan To Move Soon
When you refinance, you will have to pay closing costs on the new loan, which take away from the financial benefits. So, if you’re refinancing to lower your payment, consider how long you plan to stay in the house. If you’re planning to move in the near future, those closing costs may not be recouped before you move on.
Do the math quickly—how much are the closing costs and how much will the refinance save you each month? Add up the monthly savings until you reach the closing cost amount, and you’ll know how many months you have to stay in the house to break even. If you expect to move before that time, the refinance won’t save you money.
If Your Credit Needs Work
If your credit score is not as good as it could be, it’s probably not the time to refinance. It’s easy to get excited when you see low interest rates advertised, but remember that if your credit isn’t great you won’t qualify for those rates. Once you are into the process of refinancing and find out you’re being offered a higher interest rate, it can be hard to back out.
Keep an eye on your credit score and take steps to bring it up before you go in for a refinance. Waiting until your score is better means a much bigger savings in the long run.
If You Don’t Have Closing Costs Covered
Rolling closing costs in reduces the savings you will get from the refinance and adds thousands to the total due on your mortgage—a total that is being charged interest. It’s best to wait until you have enough cash to pay your closing costs before you refinance.
There are many other situations in which refinancing is not a good idea, and it’s always wise to take the time to do the math before you sign anything. Make sure you really are saving money in the long run, and that you’re not going to take away from equity you will need in the future.
Useful Information from Kachi Realty LLC
Cut your energy costs with easy home tips. Learn how smart lighting, efficient appliances, and simple thermostat tricks can help you save energy and money year-round.
WAYS TO GO GREEN IN THE KITCHEN Start a garden. Whether you opt for a full-out vegetable garden or a small window of fresh herbs, the taste of freshness will be unmistakable! Shop locally! Visit local farmers markets or choose locally produced produce whenever possible. Bring your own bags when you visit the grocery store. Switch to energy-efficient light bulbs. Save time and energy by cooking a double portion and setting half aside in the freezer for a quick meal at a later date. Get energized and leave the appliances alone. Whenever possible, mix and beat ingredients by hand, cook multiple items at the same time, and avoid washing dishes unnecessarily. Use energy-efficient appliances such as the slow cooker or toaster oven, which can use up to 30% less energy. Be aware of energy wasters such as excessive pre-heating or simmering. Ditch the wraps (such as saran wrap or foil) and make the switch to reusable containers for lunches and leftovers. Put a lid on it! Did you know that cooking with lids could save up to three times the energy? Keep all that steam inside the pot for a more energy-efficient (and faster!) meal. Go fresh—say goodbye to excessively packaged foods, which are often produced using processes that are harmful to the environment. Cooking meals from scratch using fresh ingredients is not only healthier, it’s often less expensive and better for the environment. Decide what you are looking for before you open the fridge, and never keep the door open longer than absolutely necessary.
Water Features For Your Yard A water feature can make a major change in your yard, and there are plenty of different ways to go about adding one. From a simple and small fountain to a koi pond or waterfall, you can use water to create a peaceful sense of a real escape from life in your yard. Small Water Features For small yards or for those looking to add something simple, a basic fountain is easy to add. They come in a variety of types, shapes, and sizes and can fit into any landscaping. Your fountain can be a centerpiece for the yard or can be placed near the patio. You can even get a small tabletop fountain for the patio table. Most fountains are easy enough to install by yourself. They use a pump system that circulates the water and keeps the fountain running. Follow all of the instructions for set-up, use, and care that come with the fountain and you can enjoy the sound of trickling water for many years to come. Adding A Pond A pond is a really eye-catching and special addition to any yard. You will need some space for it, but even smaller yards can manage one. Koi ponds are a very popular choice, as the fish are lovely and create an ambience in the yard. They fit in well with any sort of Japanese or other Asian landscape design, but really extend into other styles as well. Make sure your pond has a system for keeping the water circulating and clean; standing water can become a breeding ground for mosquitoes, and it can get quite dirty over time. It’s best to have a professional install the water system for your pond. Waterfalls You may not be able to have Niagara Falls in your yard to enjoy, but you can get a waterfall added as a feature of your yard. These can be falls that descend over a rock wall, a small stream that runs over consecutive drops in a sloped yard, or something in a corner where water falls down into a small pond. A waterfall adds the sound of moving water to the air all the time. Be sure you have proper drainage for the water system. Water features are a beautiful addition to any yard, and your imagination is really the only limit. Many professionals can help you to design the water feature that is right for your yard and your needs.