Weighing the Options of Refinancing

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Some have said that only if your new interest will be at least 2 points lower, should you refinance your loan. That may have been accurate a while back, but with the fact that refinancing has been costing less in recent years, it is never the wrong time to think about a new mortgage loan! A refinanced loan may be worth its cost several times over, because of the advantages that can come, along with a lower interest rate.

Benefits

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 may have the option of tapping into the equity in your property by "cashing out" some money to remodel your home, consolidate debt, or plan a special vacation. With reduced interest rates, you may also get the chance to build up home equity more quickly by switching to a shorter-term loan.

The Cost

Of course, you will have to pay for the process of refinancing. You'll be charged the same types of expenses and fees as with your current mortgage loan. Included in your costs might be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.

Do the Math

You might consider paying points to be given a lower interest rate. Your savings on the life of the mortgage loan could be significant if you've paid up front about three percent of the new loan balance. We recommend that you consult with a tax professional before acting on hear-say that these points paid can be deducted on your federal income taxes.

Speaking of taxes, if you reduce your interest rate, it follows that you'll also be lowering the interest amount that you'll be able to deduct on your federal income taxes. This is one more expense that borrowers consider. Call us at 5626935048 to help you do the math.

Most borrowers find that the monthly savings outweigh the up-front expenses of refinancing. We'll work with you to figure out which mortgage program is the right fit for you, taking into account your cash on hand, how likely you are to sell your house in the near future, and how refinancing could effect your taxes. Call us at 5626935048 to get you started.

Curious about refinancing? Give us a call at 5626935048.

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16211 Whittier Blvd.
Whittier, CA 90603