When is Refinancing Worth it?

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It has been said that only if your new interest will be at least 2 points below your current rate, should you refinance your loan. That might have been accurate years ago, but with refinancing dropping in cost recently, it is a good time to think about a new loan! A refinance may be worth its cost several times over, factoring in the benefits that may come, along with a reduced interest rate.


You may be able to bring down your interest rate (sometimes substantially) and make smaller monthly payments with a refinanced loan. You could also be able to "cash out" a portion of the built-up equity in your residence, which you will be able use to take care of higher interest debt, make home improvements, or finance a vacation. You could have the option to refinance into a shorter-term mortgage program, enabling you to add to your equity faster.

Fees and Expenses

As you probably know, you will have to pay for the the refinance process. When you refinance, you're paying for a lot of the same things you were charged for when you obtained your existing mortgage. Included in the list will probably be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other expenses.

Do the Math

You might investigate paying points to get a better interest rate. The amount you will save on the life of the loan may be significant if you have paid up front about three percent of the new loan total. You may have heard that the points may be tax deductible, but because tax regulations can be ever-changing, we urge you to consult with your tax professional before considering this in your calculations.

Another cost that a borrower might consider is that a lower rate of interest will reduce the interest amount you will deduct on your taxes. We can help you do the math! Call us at 4078987559.

Most borrowers find that the savings each month balance out the up-front cost of refinancing. We can help you explore your options, considering the effect a refinance might have on your taxes, how likely you might be to sell in the near future, and your available cash. Call us at 4078987559 to get started.

Want to know more about refinancing? Give us a call at 4078987559.

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2306 Curry Ford Rd
Orlando, FL 32806