Whether you are looking to renovate or you might even be interested in getting into the real estate business, TODAY real estate contributor Barbara Corcoran points readers in the right direction.
Q: I am in a five-year adjustable rate mortgage with a 4.8 percent interest rate. I want to take advantage of this great rate as long as I can, but I also want to refinance at the right time. Should I act now while rates are low? — Anonymous
A: First, check to see if you have a prepayment penalty. If you do, all bets are off as it won't then make sense for you to refinance. Instead of refinancing, you can start paying a little more money each month to the lender (say, an extra $100 or $200 if you can afford it) ... and that money is applied to the principal and brings down your principal balance. Last, remember that refinancing is not just about dollars and cents — peace of mind is worth a lot of money. So if you'll sleep better at night, you can refinance now so you don't have to worry about it tomorrow.
Peace of mind is quite priceless.
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