Is Refinancing Worth the Cost?
 |
 |
 |
Are you looking for a new mortgage? We'd be thrilled to answer your questions about your mortgage needs! Call us at 2815651246. Want to get started? Apply Here.
|
|
|
|
|
It has been said that only in the case your new interest is at least two points below your current rate, should you refinance your loan. Perhaps several years ago that was sage advice, but since refinance costs have been getting lower, it could be time to look into it. Refinancing has a variety of advantages that will often make it worth the initial cost many times over.
Advantages
You could be able to bring down your interest rate (sometimes significantly) and reduce your mortgage payment amount with your refinanced mortgage loan. You might also have the ability to "cash out" a portion of your home equity, that you can use to consolidate debts, add on to your home, or take a vacation. You may be able to refinance into a shorter-term mortgage, giving you the ability to add to your home equity faster.
Expenses and Fees
As you probably know, you will have some fees and expenses during the process of refinancing. When you refinance, you're paying for basically the same things you were charged for when you got your original mortgage loan. Among these may be settlement costs, appraisal fees, lender's title insurance, underwriting fees, and others.
Doing the Math
You might consider paying points to receive a better interest rate. The amount you'll save on the life of the mortgage loan might be significant if you have paid up front about three percent of the new loan balance. We recommend that you consult a tax professional before acting on hear-say that the points paid may be deducted on your taxes.
Another thing about taxes is that once your interest rate is lowered, of course you will also be reducing the interest amount that you may deduct on your taxes. This is one more cost that some borrowers take into consideration. We can help you do the math! Call us at 2815651246.
Most borrowers find that the monthly savings quickly balance out the initial cost of a refinance. We can help you explore your options, considering the effect a refinance might have on your taxes, how likely you may be to sell in the near future, and your available cash. Call us at 2815651246 to get started.
Curious about refinancing? Give us a call: 2815651246.
|