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The Federal Reserve Board
Board of Governors of the Federal Reserve Systemwww.federalreserve.gov0608
A Consumer’s Guide to
MortgageRe
fi
nancings
A Consumer’s Guide to Mortgage Refinancings
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Table of contents
Mortgage shopping worksheet
..................................................... 2
Why consider refinancing?
.............................................................. 3Lowering your interest rate ................................................................ 3Adjusting the length of your mortgage ............................................ 3Changing from an adjustable-rate mortgage toa fixed-rate mortgage ....................................................................... 4Getting an ARM with better terms ................................................... 4Getting cash out from the equity built up in your home ............... 5
Are you eligible to refinance?
....................................................... 6
What will refinancing cost?
............................................................ 7
What is “no-cost” refinancing?
..................................................... 10
How do you calculate the break-even period?
.................... 11
How can you shop for your new loan?
....................................... 12Talk to your current lender ................................................................. 12Compare loans before deciding ......................................................... 13Get information in writing ................................................................. 13Use newspapers and the Internet to shop ........................................ 14Be careful with advertisements ......................................................... 14
Glossary
..................................................................................................... A1
Where to go for help
............................................................................ A6
More resources and ordering information
............................. A8Print orders ............................................................................................ A9
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A Consumer’s Guide to Mortgage Refinancings
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