When is Refinancing Worth it?
 |
 |
 |
In the market for a mortgage? We can help! Give us a call at 9094671090. Want to get started? Apply Now.
|
|
|
|
|
It has been said that only in the case your new interest will be at least two points lower, should you refinance your loan. Maybe that was sound advice a number of years ago, but as refinance costs have been getting lower, it could be a good time to look into it. Refinancing has a number of benefits that will often make it worth the initial expenditure many times over.
Benefits from Refinancing
When you refinance, you may have the ability to lower the interest rate and monthly mortgage payment , perhaps significantly. You also might be given the option of tapping into your home equity by "cashing out" some funds to remodel your home, consolidate debt, or plan a special vacation. You could have the option to refinance into a shorter-term mortgage, enabling you to add to your home equity quicker.
Expenses and Fees
All of these benefits do come with some expense, though. You will be charged the same kinds of fees as with your existing mortgage loan. These might include settlement costs, appraisal fees, lender's title insurance, underwriting fees, and so on.
Do the Math
Paying points can result in a better interest rate. Your savings on the life of the mortgage could be significant if you've paid up front about three percent of the new loan total. You may be told that these points can be tax deductible, but as tax regulations are ever-changing, please consult with a tax professional before making decisions based on this.
Another cost that borrowers might consider is that a reduced interest rate will reduce the interest amount you'll deduct on your federal income taxes. We can help you do the math! Call us at 9094671090.
Most borrowers find that the savings per month outweigh the up-front cost of refinancing. We can help you find out your options, considering the effect a refinance may have on your taxes, how likely you might be to sell in the near future, and your available cash. Call us at 9094671090 to get you started.
Curious about refinancing? Call us: 9094671090.