Weighing the Options of Refinancing

Want to know more about refinancing your home? Give us a call at 8137665149.

Ever hear the pearl of wisdom that states you should only refinance if your new interest rate is at least two points under your current one? That may have been accurate years ago, but with the fact that refinancing has been costing less recently, it's a good time to explore the options of a new mortgage! A refinance is often worth its cost several times over, because of the advantages that it brings, as well as a reduced interest rate.


You could be able to lower your interest rate (sometimes by a lot) and have smaller monthly payments with your refinanced mortgage loan. You also could be given the option of tapping into your home equity by "cashing out" some money to renovate your home, consolidate debt, or take your family on a vacation. You might have the option to refinance into a shorter-term mortgage, enabling you to build your equity quicker.

Expenses and Fees

As you probably know, you'll have to pay for the the refinance process. With your refinance, you are paying for basically the same things you were charged for when you obtained your current mortgage loan. Among these may be settlement costs, an appraisal, lender's title insurance, underwriting fees, and others.

You could be required to pay a penalty for refinancing your current mortgage too quickly. It all depends on your existing mortgage agreement. Some of the penalties just apply for the first couple of years. We will help you figure it out: contact us at 8137665149.

Doing the Math

Paying points can help you get a lower interest rate. When you pay (on average) 3% of the mortgage loan amount at the start, your savings for the life of the new mortgage loan can be great. We recommend that you consult with a tax professional before acting on hear-say that any points paid can be deducted on your federal income taxes.

One more expense that a borrower may take into account is that a lower rate of interest will lower the interest amount you'll deduct from your taxes. Call us at 8137665149 to help you do the math.

In the end, for most the total of initial costs to refinance will be paid back very quickly in monthly savings. We'll help you determine what mortgage program is ideal for you, considering your cash on hand, the likelihood of selling your house in the next few years, and what effect refinancing may have on your taxes. Call us at 8137665149 to get started.

Shopping for a mortgage loan? We'd be thrilled to answer your questions about our mortgage offerings! Call us at 8137665149. Ready to begin? Apply Here.

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