Is Refinancing Worth the Cost?
Curious about refinancing your home? Call us: 909-358-4090.
It has been said that only if your new interest will be at least 2 points lower, should you refinance your mortgage. That might have been accurate a while back, but with refinancing dropping in cost recently, it is a good time to think about a new mortgage loan! A refinanced loan is often worth its cost several times over, because of the benefits that it brings, as well as a reduced interest rate.
Advantages of Refinancing
You might be able to lower your interest rate (sometimes significantly) and make smaller monthly payments with a refinanced mortgage. You could also have the ability to "cash out" a portion of the built-up equity in your residence, which you will be able use to take care of higher interest debts, add on to your home, or finance a vacation. With reduced interest rates, you might also get the chance to build up home equity more quickly by changing to a shorter-term mortgage.
Fees and Expenses
All these advantages do cost something, though. You will have the same kinds of fees as you did with your existing home loan. Included in your costs might be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other expenses.
If you refinance your existing mortgage loan too quickly, there might be a penalty to pay. This depends on the terms of your current mortgage loan. These penalties may just apply for the first year or two. We will help you figure it out: contact us at 909-358-4090.
Do the Math
Paying points can help you get a better interest rate. The amount you will save on the life of the mortgage might be substantial if you've paid up front about 3% of the new loan balance. We recommend that you consult a tax professional before acting on rumors that any paid points can be deducted on your federal income taxes.
Another expense that borrowers might consider is that a reduced interest rate will reduce the interest amount you'll deduct on your taxes. We can help you do the math! Call us at 909-358-4090.
Most borrowers find that the monthly savings quickly outweigh the initial expenses of refinancing. 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 available cash. Call us at 909-358-4090 to get you started.
In the market for a new mortgage? We can assist you! Call us at 909-358-4090. Ready to get started? Apply Here