Your home is most likely the single biggest asset you own, and can make the decision to refinance a difficult one. Also, a home is most often filled with the owners personal touches and contains many memories. You might ask what the heck family memories have to do with a home refinance. Good question. If you find yourself at the closing table unsure of your loan details, terms, benefits, and how your refinance will set you up for the future, thoughts of future financial uncertainty could suddenly pop into your mind. Shortly thereafter, slowly creeping into your consciousness, come visions of invading bill collector warriors attacking your castle, and you suddenly shout Not my home!and choose to put a stop to the refinance plans. Now, your loan program at the closing may have been an excellent one that provided for sound financial benefit, or maybe not. What is really important is that you understand the impact that your refinance will have on your immediate and long term financial picture, before you sign the final papers. Many people view their residence as their house during the refinance process, and later feel it is their home at the closing table.
It may seem...