Common Sense in the Refinancing of Your Home

Merriam/Webster defines common sense as "Sound and prudent judgment based on a simple perception of the situation." Other sources define it as sound judgment not based on specialized knowledge (or just simply instincts). In the animal world that is very important, but in the world we humans live in, our instincts (common sense) are polluted by the "what ifs"; such as, what if I put my finger into my mouth and moisten it just before I place it on a hot stove to see if it is really as hot as those bright red burners would indicate. Now I would not do that what if again, not because of common sense but because I now would be making a sound judgment based on a first hand specialized knowledge.

So if you are advised to use COMMON SENSE when refinancing your home, then by definition, you have been given some very bad advice.

Therefore, I would tell you to arm yourself with all the specialized knowledge that you can get your hands on. For example, if you say to your spouse what if we refinance and buy the toys we want such as a new HDTV, a new refrigerator and other toys such as a new car. Stop. Refinancing is typically for 30 years. A new car loan is for 5 years. Then why would you want to pay for that car for 30 years? If one of you has that specialized knowledge, you would be able to make a sound decision based on knowledge; not on common sense.

Now I do not say refinancing is a bad thing; not at all. Refinancing should be a wonderful thing and could be if you use it as a tool to better your life and not use it to satisfy your wants.

For more suggestions log on to http://www.wareappraisals.com

I, Luis Vergara, am the owner and operator of WARE Appraisals, my philosophy is one cannot help himself without first helping others. I do that by staying informed and passing on what I learn to others if they will benefit from what I have to offer. Additional Information is available at http://www.wareappraisals.com

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This entry was posted on Monday, June 30th, 2008 at 6:06 pm and is filed under Mortgage Rate Refinance . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.