When refinancing on a home what things should I be careful of?

Question

What is a arm type 3/37

never mind I figured out what the arm 3/37 (fixed rate for 3 years) then goes up enother 3% then could go up enother 1.5% every 6 months and top out at 6%.) The payments go up from $757 then $992 then 1112 then 431 payments of 1232 and one last payment of 1240.12

Answer 1

First thing first: How much it's going to cost you (the closing cost and etc). Some lenders claim that it does not cost you a penny, but they actually roll that cost into your mortgage balance.
Calculate how much you save and how long it takes to recoup that cost.
See www.mtgprofessor.com for more info.

Answer 2

There are a number of things you'll want to weigh when considering which lender to use. Make them compete! One major factor is the interest rate. Go on-line and check the national average and the average in your area. Make sure that your lender isn't charging you a much higher interest rate than you could get elsewhere. Also, check on the terms. Some lenders charge you a penalty if you pay against the principle early. This is called a pre-payment penalty clause. They do this to ensure that they make a profit on your loan. After all, if you come into a big wind-fall and decide to pay off a big portion or all of your loan, that means they lose some of the profits they other wise would have made from you in interest. The loan amount itself is already their money, not profit. Of course, most people don't usually get the chance to pay that way, but you will want to know of any penalties should it happen because it would also apply if you sold your house before it was paid off. The penalty would come right out of your equity. These are the two biggest factors in my opinion. Happy shopping!

Answer 3

Just simply make sure you're getting the best deal and don't let too many people pull your credit!

Way too many times this happens to people and they don't even realize it.