Weighing the Options of Refinancing
Shopping for a mortgage loan? We'd be thrilled to talk about your mortgage needs! Call us at 3032282254. Ready to begin? Apply Now.
Some have said that only if your new interest is at least 2 points lower, should you refinance your loan. That may have been good advice years ago, but with the fact that refinancing has been costing less over the last few years, it's a good time to consider a new loan! A refinance is often worth its cost several times over, considering the advantages that may come, along with a reduced interest rate.
Advantages of Refinancing
You may be able to lower your interest rate (sometimes substantially) and make smaller mortgage payments with your refinanced loan. You may also have the option to "cash out" some of the built-up equity in your home, which you can use to take care of higher interest debts, make home improvements, or plan a vacation. You might have the option to refinance into a shorter-term mortgage loan, giving you the ability to add to your equity quicker.
All these advantages do come with some expense, though. You'll have the same types of expenses and fees as you did with your existing mortgage loan. Among these might be settlement costs, appraisal fees, lender's title insurance, underwriting fees, and so on.
Doing the Math
You might look into paying points to reduce your interest rate. Your savings over the life of the mortgage loan could be substantial if you've paid up front about three percent of the new loan total. Please talk to a tax professional before acting on rumors that the points paid may be deducted on your taxes.
Another thing about taxes is that when you lower your interest rate, of course you will also be lowering the interest amount that you will be able to deduct from your taxes. This is another cost that some borrowers consider. Call us at 3032282254 to help you do the math.
In the end, for most people the total of initial costs to refinance are paid back soon in monthly savings. We can help you explore your options, considering the effect a refinance may have on your taxes, how likely you may be to sell in the near future, and your available cash. Call us at 3032282254 to get started.
Want to know more about refinancing your home? Call us: 3032282254.