Should You Refinance?
When you're making your decision, there are several things in mind.
First, even a small rate cut can pay off quickly. That's because you
can easily find mortgage companies willing to waive routine refinancing
charges such as application, appraisal and legal fees (which can add up
to $1,500 to $3,000). Of course, in exchange for low or no up-front
costs, you'll have to be willing to accept a rate that's somewhat higher
than the prevailing rock bottom.
Second, if you are planning to stay in your home for at least three
to five years, it may make sense to pay "points" (a point equals 1% of
the loan amount) and closing costs to get the lowest available rate.
And third, you can avoid laying out cash and still get a low rate by
adding the points and closing costs to your new mortgage. Does that mean
shouldering a lot of extra debt? Not necessarily. If you've had your
current mortgage for at least three years, you've probably reduced your
balance by several thousand dollars. So you may be able to tack your
closing costs onto your new loan and still end up with a mortgage that's
smaller than your original one -- plus, of course, a lower rate and
lower monthly payment.
Let me give you some other tips to refinancing... email me at firstname.lastname@example.org
or call me directly at: 435-668-7885. Service to you, is
important to me!