Is Refinancing Worth the Cost?

Shopping for a mortgage loan? We can help! Give us a call today at 7068605514. Ready to get started? Apply Now.

Some have said that only in the case your new interest will be at least two points lower, should you refinance your loan. Perhaps that was good advice a number of years ago, but since refinance costs have been getting lower, it may be time to look into it. A refinanced mortgage can be worth its cost many times over, considering the advantages that can come, as well as a lower interest rate.

Benefits from Refinancing

When you refinance, you might have the ability to reduce the interest rate and monthly payment amount, sometimes significantly. You may also be able to "cash out" some of the built-up equity in your home, that you may use to take care of higher interest debts, make home improvements, or take a vacation. You might have the option to refinance to a shorter-term mortgage loan, enabling you to build your equity quicker.

The Cost

All of these benefits do cost something, though. You will have the same kinds of expenses and fees as you did with your present home loan. Included in the list may be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other expenses.

Do the Math

You might look into paying points to receive a lower interest rate. When you pay (on average) three percent of the loan amount at the start, the savings for the life of the refinanced mortgage loan can be substantial. You may have heard that points may be tax deductible, but because tax regulations are ever-changing, we urge you to consult with your tax professional before depending on this.

One more cost that a borrower might consider is that a reduced rate of interest will lower the interest amount you'll be able to deduct on your federal income taxes. We can help you do the math! Call us at 7068605514.

Most people find that the monthly savings quickly outweigh the up-front cost of a refinance. We will work with you to find out which mortgage loan program is the best fit for you, considering your cash on hand, the likelihood of selling your home in the near future, and what effect refinancing will have on your taxes. Call us at 7068605514 to get started.

Curious about refinancing your home? Call us at 7068605514.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question

Augusta Mortgage Solutions

NMLS#:148529 GA Residential Mortgage Licensee #18861

141 North Belair Road Suite 102 NMLS# 149807
Evans, GA 30809-7431