looking to refinance their mortgage wants to know how to get the
best mortgage rates in Virginia. Here are several things in keep
mind when you're making your decision.
a small rate cut can pay off quickly. That's because you can easily
find mortgage companies willing to waive routine refinancing charges
such as application, appraisal and legal fees (which can add up
to between $1,500 and $3,000). Of course, in exchange for low or
no up-front costs, you'll have to be willing to accept a mortgage
rate that's somewhat higher than the prevailing rock bottom rate.
Second, if you
are planning to stay in your home for at least three to five years,
it may make sense to pay "points" (a point equals 1% of the loan
amount) and closing costs to get the lowest available rate.
And third, you
can avoid laying out cash and still get a low mortgage rate by adding
the points and closing costs to your new mortgage. Does that mean
shouldering a lot of extra debt? Not necessarily. If you've had
your current mortgage for at least three years, you've probably
reduced your balance by several thousand dollars. So you may be
able to tack your closing costs onto your new loan and still end
up with a mortgage that's smaller than your original one -- plus,
of course, a lower mortgage rate and lower monthly payment.