| Going through the home refinance process may seem | | | | to recoup the costs of refinancing. Evaluate this |
| like a good idea to save money or to get money for | | | | carefully to ensure that it will be worth the money that |
| home improvements or other purposes, but there are | | | | you will have to spend to refinance your home. |
| some instances when you should not refinance your | | | | - To pay off credit card debt without addressing the |
| home. By understanding the situations where getting a | | | | spending problem. |
| refinancing loan is not such a good idea, you can better | | | | Refinancing your home to pay off your credit cards, |
| understand when you should look into the home | | | | only to rack up the debt again is not a reason to |
| refinance process. What are some of the reasons | | | | refinance. If you do not address the spending issues |
| why you should not refinance your home? | | | | that you and/or your spouse have, you will not do any |
| - To pay for a vacation, car, or other consumable | | | | good in the long run. You are putting your home at risk |
| purchase. | | | | and are possibly setting yourself up for bankruptcy in |
| If you are going to refinance your home to take a | | | | the future. You are exchanging your short-term debt |
| vacation or to pay for a car or other purchase, this | | | | for long term debt that you are going to have to pay |
| may not be such a good idea. When you refinance | | | | for up to 30 years. Addressing the spending issues |
| your home, you are taking out a loan for a time period | | | | that you have will help your refinancing decision to be |
| of 15 to 30 years. If you use the money for a vacation | | | | a sound one, rather than just a quick fix. Cut up the |
| or other purchase, then you are in essence paying for | | | | credit cards or make other changes that will keep you |
| it for the entire length of the loan. That is not a smart | | | | out of this situation in the future. |
| move, simply because it is throwing money down the | | | | A home refinance loan may sound like a good idea, |
| drain, because it is a purchase that will not last. | | | | but it is important to evaluate why you are getting the |
| - You will not break even with closing costs and | | | | loan to ensure that it is best for your long term goals. |
| interest rate. | | | | Make sure that it is a sound financial decision that will |
| Make sure that you are going to stay in the home long | | | | help you in the future, rather than make your financial |
| enough to recoup your closing costs and refinancing | | | | situation more tenuous. By considering the reasons |
| fees that you have to pay. By considering the lower | | | | why you should not refinance your home, you can |
| monthly payment and how long it will take to make up | | | | better determine if your reasons are financially sound |
| the closing costs that you are going to pay, you can | | | | for you and your family. |
| make sure that you will stay in the home long enough | | | | |