Entries about home equity loans
When the grace period ends, you will be responsible for the balance of the loan at a higher interest rate or on an accelerated schedule, but the lender expects that you will either sell the house or refinance before the end of the grace period. The best way to decide whether it's time for mortgage refinancing is to sit down with a mortgage calculator and calculate the break even point. This is the date on which the savings you get from lowering your interest rate equal the fees you must pay to refinance. If the date falls before the time you plan to sell your house, then refinancing is a good idea. If you plan to have already sold the house on the break even date, or the break even date is so close to your planned date of sale that the savings are negligible, then refinancing is not a wise idea.