December 06, 2001

By: Bev Dodd
Website: http://www.family-refinance-consolidation-loans.com

Best refinance home mortgage rate: Great rates, low costs

Even a small rate cut can pay off quickly when you get a best refinance home mortgage rate loan. Don't forget to check if your state has realty transfer taxes; it could affect your best refinance home mortgage rate. We'll discuss this more below.

Even a small rate cut can pay off quickly when you get a best refinance home mortgage rate. That's because you can easily find mortgage companies willing to waive routine refinancing charges such as application, appraisal and legal fees (which can add up to $1,500 to $3,000). Of course, in exchange for low or no up-front costs, you'll have to be willing to accept a rate that's somewhat higher than the prevailing rock bottom.

One other factor involved in a best refinance home mortgage rate: how much money you'll need or want to borrow. Most lenders will let you borrow around 80% of your home's current appraised value. Some will allow more, if you're simply refinancing your existing loan. But, if you're looking to tap equity, known in the mortgage industry as a cash-out, you'll probably find that it's less than 80%.

One final point to remember that could affect your best refinance home mortgage rate loan. Some states have surcharges known as 'mortgage taxes', 'realty transfer taxes', 'mortgage recording fees' and others. It is very important to find out if your area is one that does charge these fees, since they can add as much as 2% of the mortgage amount to your closing costs, and significantly lengthen the cost recovery time.

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About The Author:

Bev Dodd is a successful author and publisher of http://www.family-refinance-consolidation-loans.com.  Many have commented that her website offers the best recommendations, links and information on loans, mortgages and financing.