Is Refinancing Worth the Cost?
 |
 |
 |
Searching for a loan? We will be glad to assist you! Call us at 512.257.3749. Want to get started? Apply Here. |
|
|
|
| 
It has been said that only when your new interest is at least two points under your current rate, should you refinance your loan. That could have been valid years ago, but since refinancing has been costing less recently, it's never the wrong time to consider a new mortgage loan! Refinancing has a number of benefits that will often make it worth the initial expenditure many times over.
Benefits
When you refinance, you might be able to lower your interest rate and monthly mortgage payment amount, perhaps considerably. You could also be able to "cash out" a portion of your equity, which you may use to take care of higher interest debts, make home improvements, or take a vacation. With lower interest rates, you might also get the chance to build up home equity faster by switching to a shorter-term loan.
The Cost
As you probably know, you will have to pay for your the refinance process. You will have the same kinds of expenses and fees as you did with your present home loan. These may include settlement costs, an appraisal, lender's title insurance, underwriting fees, and others.
Do the Math
Paying points can result in a lower interest rate. When you pay (on average) 3% of the loan amount up front, your savings for the term of the refinanced mortgage can be substantial. Please consult with a tax professional before acting on advice that these points paid may be deducted on your federal income taxes.
Speaking of taxes, when you lower your interest rate, of course you'll also be reducing the interest amount that you'll be able to deduct on your taxes. This is another cost that borrowers take into account. We can help you do the math! Call us at 5122573749.
Most borrowers find that the monthly savings quickly outweigh the initial expenses of a refinance. We can help you figure out what your options are, considering the effect a refinance may have on your taxes, how likely you may be to sell in the next couple of years, and your cash on hand. Call us at 5122573749 to get started.
Curious about refinancing your home? Call us: 512.257.3749.
|
