Weighing the Options of Refinancing
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In the market for a new mortgage? We can assist you! Give us a call at 877-210-6899. Ready to begin? Apply Now.
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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 accurate years ago, but since refinancing has been costing less in recent years, it is never the wrong time to explore the options of a new mortgage! A refinanced mortgage may be worth its cost many times over, considering the advantages that come, as well as a reduced interest rate.
Advantages of Refinancing
When you refinance, you could have the ability to reduce the interest rate and monthly payment amount, sometimes considerably. You also might have the option of tapping into the equity in your home by "cashing out" some money to fix up your home, consolidate debt, or plan a special vacation. You may be able to refinance into a shorter-term mortgage program, giving you the ability to add to your home equity faster.
The Cost
All of these advantages do come with some expense, though. With your refinance, you are paying for many of the same things you were charged for when you got your current mortgage loan. Included in your costs may be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.
Doing the Math
Paying points can help you attain a better interest rate. Your savings on the life of the mortgage loan might be substantial if you have paid up front about 3% of the new loan balance. We recommend that you consult with a tax professional before acting on advice that these paid points may be deducted on your federal income taxes.
Another thing about taxes is that once you reduce your interest rate, naturally you'll also be reducing the paid interest amount that you'll be able to deduct on your taxes. This is another cost that some borrowers take into consideration. We can help you do the math! Call us at 877-210-6899.
In the end, for most people the total of up-front costs to refinance are paid back very quickly in monthly savings. We will help you find out which mortgage loan program is ideal for you, taking into account your cash on hand, the likelihood of selling your home in the near future, and how refinancing might effect your taxes. Call us at 877-210-6899 to get started.
Want to know more about refinancing? Give us a call: 877-210-6899.