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- How much is my home worth? <\/b>In some cases, it\u2019s not worth it to refinance because homeowners owe more on their mortgage than what their house is worth. On the other hand, if you have owned your home for a long time, you probably have enough equity to make refinancing worthwhile. The first step should be an appraisal to find out how much your home is actually worth.<\/span><\/b><\/li>\n<\/ul>\n
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- What can I get for a mortgage rate? <\/b>Generally, it makes sense to refinance if the new rate is about\u00a01% lower than your existing loan. If this is the case, you are likely to save enough in monthly payments to offset the closing costs. Although interest rates went up at the end of 2015, they are still at record lows, so depending on when you bought your home, you may be able to get a much better deal.<\/span><\/li>\n<\/ul>\n
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- How much will I have to pay in closing costs? <\/b>There are <\/span>a number of costs<\/span><\/a> associated with refinancing. They include an application fee, a title search, and attorney fees. It\u2019s to your advantage to research these fees ahead of time. Sometimes it may be possible to <\/span>reduce or eliminate<\/span><\/a> closing costs by negotiating for a rebate in exchange for a slightly higher interest rate. Some lenders such as Union Savings Bank are advertising really low. Union Savings Bank, in particular, has a refinance closing cost of $250 plus recording fees and the rate on a 30 year loan is about 3.375% right now.<\/span><\/li>\n<\/ul>\n
Use a Calculator<\/h2>\n
To find out if refinancing makes sense for you, use this calculator<\/a>. Based on your current mortgage situation and interest rate, you can see if refinancing will save you money and\/or how long it will take to recover the closing costs.<\/p>\n
BENEFITS<\/h2>\n
![\"Benefit](\"https:\/\/clintaford.com\/wp-content\/uploads\/2016\/08\/Fotolia_65928944_Subscription_Monthly_M-300x200.jpg\")
<\/a>Benefit vs Cost comparison on hand<\/figcaption><\/figure>\n There are many potential benefits to refinancing, including:<\/span><\/p>\n
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- A lower monthly payment<\/span><\/li>\n
- Avoiding \u00a0a \u201c<\/span>balloon payment\u201d<\/span><\/a> at the end of the term of your current mortgage<\/span><\/li>\n
- Eliminating private mortgage insurance<\/span><\/li>\n
- Cashing out some of your home equity<\/span><\/li>\n<\/ul>\n
- Avoiding \u00a0a \u201c<\/span>balloon payment\u201d<\/span><\/a> at the end of the term of your current mortgage<\/span><\/li>\n
- A lower monthly payment<\/span><\/li>\n
- How much will I have to pay in closing costs? <\/b>There are <\/span>a number of costs<\/span><\/a> associated with refinancing. They include an application fee, a title search, and attorney fees. It\u2019s to your advantage to research these fees ahead of time. Sometimes it may be possible to <\/span>reduce or eliminate<\/span><\/a> closing costs by negotiating for a rebate in exchange for a slightly higher interest rate. Some lenders such as Union Savings Bank are advertising really low. Union Savings Bank, in particular, has a refinance closing cost of $250 plus recording fees and the rate on a 30 year loan is about 3.375% right now.<\/span><\/li>\n<\/ul>\n
- What can I get for a mortgage rate? <\/b>Generally, it makes sense to refinance if the new rate is about\u00a01% lower than your existing loan. If this is the case, you are likely to save enough in monthly payments to offset the closing costs. Although interest rates went up at the end of 2015, they are still at record lows, so depending on when you bought your home, you may be able to get a much better deal.<\/span><\/li>\n<\/ul>\n