Weighing the Options of Refinancing
 |
 |
 |
Shopping for a mortgage loan? We will be glad to assist you! Call us at 7072522700. Ready to begin? Apply Now.
|
|
|
|
|
Some have said that only in the case your new interest is at least two points under your current rate, should you refinance your loan. Maybe that was good advice a number of years ago, but as refinance costs have been falling recently, it could be time to take a serious look. Refinancing your loan has a variety of advantages that often make it worth the up-front expenditure a few times over.
Benefits from Refinancing
You may be able to lower your interest rate (sometimes significantly) and make smaller monthly payments with a refinanced mortgage loan. You may also have the ability to "cash out" a portion of the built-up equity in your home, that you may use to take care of higher interest debt, add on to your home, or finance a vacation. You may be able to refinance to a shorter-term mortgage program, giving you the ability to build up your equity quicker.
The Cost
All these advantages do cost something, though. You'll have to pay the same sort of expenses and fees as you did with your existing mortgage. Included in the list can be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other expenses.
Doing the Math
Paying discount points can get you a lower interest rate. Your savings over the life of the mortgage loan might be substantial if you've paid up front about three percent of the new loan total. We recommend that you talk to a tax professional before acting on rumors that these paid points can be deducted on your taxes.
Another expense that borrowers may consider is that a lower interest rate will reduce the interest amount you will be able to deduct from your taxes. Call us at 7072522700 to help you do the math.
Ultimately, for most people the total of initial costs to refinance will be made up very quickly in monthly savings. We will help you determine which program is the right fit for you, considering your cash on hand, how likely you are to sell your house in the near future, and how refinancing might effect your taxes. Call us at 7072522700 to get started.
Want to know more about refinancing your home? Call us at 7072522700.