Is Now the Right Time to Refinance? LendingTree.com Shares Some Helpful Tips

CHARLOTTE, N.C., January 30, 2008 – You always hear about refinancing, but when exactly is the right time for you to consider making a change to your mortgage? LendingTree.com shares three scenarios in which refinancing might be attractive to homeowners and may also save them some money:

When interest rates drop

If interest rates have dropped at least half of one percentage point from the level they were when you acquired your original mortgage, you might want to weigh the financial advantages of refinancing. For example, if you started with a 30-year fixed rate mortgage of $150,000 at 5.5 percent, but rates have dropped to 4.5 percent, you would realize a principle and interest savings of $91.65 per month. Check out the LendingTree refinancing calculator to see if now is a good time for you.

When interest rates may rise

Obviously you may want to consider refinancing when rates drop, but what about when the market is anticipating that rates will rise? This is also a good time to lock in a new rate, particularly if you have an adjustable rate mortgage (ARM), and would like to move to a fixed rate mortgage to insulate yourself from a rising and falling interest rate environment.

When you want to accelerate equity

If your income has risen, you might want to consider paying off your mortgage faster by moving from a 30-year term to a 15-year term. This refinancing route will help accelerate the equity buildup in your home, while also cutting down the amount you will pay in interest costs. In this scenario, your monthly payments will likely rise, so make sure that your higher income is enough to accommodate the increased amount.

One last tip - Keep in mind that refinancing isn’t free. There are fees involved, and you may even need to pay for points to obtain a lower interest rate, so weigh the financial advantages carefully to ensure that refinancing is indeed a good move for you.

For more information on refinancing a home, please visit the LendingTree Smart Borrower Center.

About LendingTree, LLC

LendingTree, LLC is the nation’s number one online lending exchange, providing a marketplace that connects consumers with multiple lenders that compete for their business. Since inception, LendingTree has facilitated more than 23 million loan requests and $185 billion in closed loan transactions. LendingTree provides access to mortgages and refinance loans, home equity loans/lines of credit, auto loans, personal loans, credit cards and high-yield savings accounts via www.lendingtree.com and 800-555-TREE.

Launched in 1998 with headquarters in Charlotte, North Carolina, LendingTree, LLC also owns and operates LendingTree Loans sm, LendingTree Settlement Services, LLC, GetSmart®, and HomeLoanCenter.com. LendingTree, LLC is an operating company of IAC.