byAlma Abell

A common mistake that many homeowners make is to fail to take advantage of changes in the interest rates that could save them thousands of dollars over the life of their mortgage. Understanding when it makes sense to take a closer look at refinance rates in New York is not always a simple issue, but there are some basic tools that you can use to see if it is a good option for you to consider.

Time in the Home

One of the first things that you need to do it is to take a long look at the duration of time that you plan to spend in your home. It is no point in going through the process of looking at refinance rates in New York if you aren’t going to live in or own the property for long enough to reap the benefits.

Remember that lower refinance rates in New York typically are associated with costs, and this needs to be calculated in over the duration that you plan to pay the mortgage. Often if you are only planning on living in the home for a few additional years it is not really a cost saving venture.

Shop Around

When looking for refinance rates in New York it is critical to shop around. You may find that your current lender offers the best option, or you may also find another company is willing to work with you to your advantage. It is so important to make sure you are considering the total cost of the refinance option, including all closing costs and fees, when comparing lenders and options.

It is highly recommended by most financial experts that you shop at least five different lenders, which may include brokers as well. Make sure that you are also comparing similar loans including the fixed years, ARMs or hybrid ARMs that may have a fixed rate for a set period of time in the loan. After this ends they will go to a normal adjusting mortgage rate.

While shopping around for refinance rates in New York will take a bit of time, saving even $100 a month over 10 years will add up to a total savings of $12,000, which is a significant amount to add into a retirement account or to take the vacation of a lifetime.