Have you ever heard the pearl of wisdom that states you should only consider refinancing if the new interest rate is at least 2 points lower than your current one? Maybe that was good advice several years ago, but since refinance costs have been falling recently, it could be a good time to take a serious look. A refinanced loan is often worth its cost many times over, considering the advantages that it brings, in addition to a reduced interest rate.
Another thing about taxes is that when your interest rate is reduced, naturally you'll also be lowering the interest amount that you can deduct on your taxes. This is another expense that some borrowers take into account. We can help you do the math.
In the end, for most borrowers the total of initial costs to refinance are paid back very quickly in savings each month. We'll work with you to figure out what mortgage loan program is ideal for you, considering your cash on hand, how likely you are to sell your house in the next few years, and how refinancing might effect your taxes. We would love to get you started.
Advantages
When you refinance, you may be able to lower your interest rate and mortgage payment , perhaps significantly. You might also have the option to "cash out" a portion of your equity, which you will be able use to take care of higher interest debt, make home improvements, or plan a vacation. You could be able to refinance to a shorter-term mortgage loan, enabling you to add to your home equity faster.Fees and Expenses
All of these advantages do cost something, though. You will pay the same kinds of expenses and fees as you did with your current mortgage loan. Included in the list can be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.Do the Math
You might consider paying points to reduce your interest rate. Your savings on the life of the loan might be significant if you've paid up front about three percent of the new loan total. You might be told that points may be tax deductible, but because tax regulations can be ever-changing, we urge you to consult with your tax professional before making decisions based on this.Another thing about taxes is that when your interest rate is reduced, naturally you'll also be lowering the interest amount that you can deduct on your taxes. This is another expense that some borrowers take into account. We can help you do the math.
In the end, for most borrowers the total of initial costs to refinance are paid back very quickly in savings each month. We'll work with you to figure out what mortgage loan program is ideal for you, considering your cash on hand, how likely you are to sell your house in the next few years, and how refinancing might effect your taxes. We would love to get you started.
For even more information about why you should consider refinancing, view this article here.
If you'd like to know more about refinancing your home, call us at 877-828-8851.
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