Is Refinancing Worth the Cost?
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Searching for a mortgage loan? We can help! Give us a call today at 6507631924. Ready to begin? Apply Here.
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Ever heard the pearl of wisdom that says you should only refinance if your new interest rate will be at least two points under your present rate? Maybe that was sound advice a number of years ago, but since refinance costs have been getting lower, it may be a good time to take a serious look. Refinancing your mortgage loan has various advantages that will often make it worth the up-front cost several times over.
Advantages
When you refinance, you could have the ability to reduce the interest rate and mortgage payment , perhaps considerably. You could also have the ability to "cash out" a portion of your equity, which you may use to consolidate debts, make home improvements, or finance a vacation. With reduced rates, you might also get the chance 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 process of refinancing. You'll pay the same types of expenses and fees as you did with your current mortgage loan. Included in the list will probably be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.
Do the Math
You might consider paying points to reduce your interest rate. When you pay (on average) 3% of the loan amount at the start, your savings for the term of the refinanced mortgage loan can be significant. Please talk to a tax professional before acting on rumors that any points paid may be deducted on your taxes.
An additional expense that a borrower might take into account is that a reduced interest rate will lower the interest amount you'll deduct from your taxes. We can help you do the math! Call us at 6507631924.
Most borrowers find that the monthly savings quickly outweigh the initial expenses of a refinance. We'll help you determine what mortgage program is perfect for you, taking into account your cash on hand, the likelihood of selling your house in the near future, and the effect refinancing may have on your taxes. Call us at 6507631924 to get started.
Want to know more about refinancing your home? Give us a call: 6507631924.