Is Refinancing Worth the Cost?
 |
 |
 |
Are you looking for a mortgage loan? We'll be glad to answer your questions about your mortgage needs! Give us a call today at 2148657442. Ready to begin? Apply Now.
|
|
|
|
|
Some have said that only in the case your new interest will be at least two points lower, should you refinance your mortgage. That might have been true years ago, but with refinancing dropping in cost recently, it is a good time to think about a new mortgage loan! Refinancing your mortgage has a number of benefits that will often make it worth the up-front expenditure several times over.
Benefits from Refinancing
You may be able to lower your interest rate (sometimes by a lot) and reduce your monthly mortgage payment amount with a refinanced mortgage loan. You could also be able to "cash out" some of the built-up equity in your home, which you may use to consolidate debts, add on to your home, or take a vacation. You could have the option to refinance to a shorter-term mortgage loan, enabling you to build your home equity quicker.
Fees and Expenses
All of these advantages do come with some expense, though. You will be charged the same types of expenses and fees as with your current mortgage. Included in the list may be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.
Do the Math
Paying points can get you a lower interest rate. The money you'll save over the life of the mortgage may be significant 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 hear-say that these points paid can be deducted on your federal income taxes.
One more expense that borrowers may take into account is that a lower rate of interest will lower the interest amount you will be able to deduct from your taxes. We can help you do the math! Call us at 2148657442.
Most borrowers find that the monthly savings quickly outweigh the up-front cost of a refinance. We can help you find out what your options are, considering the effect a refinance might have on your taxes, how likely you might be to sell in the next couple of years, and your available cash. Call us at 2148657442 to get you started.
Want to know more about refinancing your home? Give us a call: 2148657442.