Is Refinancing Worth the Cost?
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Looking for mortgage advice? We'll be glad to talk about our many mortgage solutions! Give us a call at 2147390569. Want to get started? Apply Here.
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Ever heard the old rule of thumb that states you should only refinance if the new interest rate is at least 2 points under your existing one? Perhaps several years ago that was good advice, but since refinance costs have been getting lower, it may be a good time to take a serious look. Refinancing has a variety of benefits that often make it worth the initial cost a few times over.
Benefits
When you refinance, you could be able to reduce the interest rate and monthly mortgage payment amount, sometimes considerably. Additionally, you may have the option of pulling out some of the equity in your property by "cashing out" some funds to renovate your home, consolidate debt, or plan a special vacation. You could have the option to refinance into a shorter-term mortgage program, giving you the ability to build up your equity quicker.
Expenses and Fees
Of course, you'll have some fees and expenses during your the refinance process. You'll pay the same types of expenses and fees as with your present mortgage. Included in the list will probably be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.
Doing the Math
You might look into paying points to reduce your interest rate. The amount you'll save over the life of the mortgage may be substantial if you have paid up front about three percent of the new loan total. Please consult with a tax professional before acting on rumors that the points paid may be deducted on your federal income taxes.
One more cost that a borrower may consider is that a lower interest rate will reduce the interest amount you will be able to deduct from your federal income taxes. We can help you do the math! Call us at 2147390569.
Ultimately, for most the amount of initial costs to refinance are paid back very quickly in savings each month. We'll work with you to determine what mortgage loan program is perfect 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 2147390569 to get you started.
Curious about refinancing? Call us: 2147390569.