mortgage refinance
Hi Terry,
When does it make sense to refinance your mortgage? Is it a certain percentage lower, when you have enough money to reduce your monthly payment? What do closing cost look like when you do refinance, how much should you have set aside for those costs?
Thanks!
Terry Says
With interest rates dropping it definitely makes sense to look into refinancing NOW! If you can save $100 a month on your payment — AND NOT EXTEND THE TERM of your mortgage — it’s a great deal. By that I mean, if you’ve already paid on your 30-year mortgage for ten years, then refi to a 20 year mortgage — or even a 15 year mortgage at a lower rate. It might not save you much each month, but you’ll save a fortune in interest by shortening the term of your mortgage.
Check rates at a place like GuaranteedRate.com. Closing costs should be part of the deal, and should not be paid separately or added in to the balance. Make sure of that. The mortgage lender should include those as part of the rate quoted.
