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Should you refinance?(UP FRONT)(Brief article)

Consumer Reports

| March 01, 2009 | COPYRIGHT 2009 Consumers Union of the United States, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

With fixed-mortgage rates hovering near 5 percent, now is a good time to refinance. If you're under water on your mortgage--you owe more than your home is worth--you won't be able to do that. But if you have sufficient equity in your home as well as great credit, you're a prime candidate. Expect to pay for an appraisal and face strict documentation requirements.

In this chaotic housing market, it pays to shop around for a lender. Jack Guttentag, a professor of finance emeritus at the Wharton School who runs a Web site on home mortgages, says there can be a 1 percentage point difference in rates from the highest-priced lender to the lowest-priced and 0.25 ...

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