Weighing the Options of Refinancing
 |
 |
 |
Searching for mortgage advice? We'd be thrilled to discuss our mortgage offerings! Give us a call today at 5852820960. Ready to get started? Apply Now.
|
|
|
|
|
Some have said that only when your new interest is at least two points below your current rate, should you refinance your mortgage. That could have been valid years ago, but with the fact that refinancing has been costing less recently, it is a good time to consider a new loan! A refinanced mortgage loan may be worth its cost several times over, factoring in the benefits that may come, as well as a lower interest rate.
Advantages of Refinancing
When you refinance, you could have the ability to lower the interest rate and monthly mortgage payment , sometimes significantly. You also could have the option of tapping into your home equity by "cashing out" some money to renovate your home, consolidate debt, or plan a special vacation. With reduced interest rates, you may also be able to build up home equity more quickly by switching to a shorter-term mortgage.
Fees and Expenses
Of course, you will have some fees and expenses during your the refinance process. When you refinance, you are paying for basically the same things you were charged for during your existing mortgage loan. Included in your costs might be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.
Doing the Math
You might look into paying points to receive a better interest rate. Your savings over the life of the loan may be significant if you've paid up front about three percent of the new loan total. Please consult a tax professional before acting on advice that any points paid can be deducted on your taxes.
Speaking of taxes, once your interest rate is lowered, naturally you will also be lowering the interest amount that you will be able to deduct on your taxes. This is another cost that borrowers take into consideration. Call us at 5852820960 to help you do the math.
In the end, for most people the total of up-front costs to refinance are made up soon in savings each month. We'll help you figure out what loan program is right for you, looking at your cash on hand, the likelihood of selling your home in the next few years, and the effect refinancing could have on your taxes. Call us at 5852820960 to get started.
Curious about refinancing your home? Give us a call: 5852820960.