Weighing the Options of Refinancing

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Some have said that only when your new interest will be at least 2 points lower, should you refinance your mortgage. That could have been accurate a while back, but with refinancing dropping in cost in recent years, it's never the wrong time to consider a new mortgage! A refinanced mortgage loan can be worth its cost several times over, because of the benefits that come, along with a reduced interest rate.

Benefits

You might be able to bring down your interest rate (sometimes by a lot) and reduce your mortgage payment amount with a refinanced mortgage. You could also have the option to "cash out" a portion of the built-up equity in your home, that you will be able use to take care of higher interest debts, make home improvements, or take a vacation. With lower rates, you might also be able to build your home equity faster by moving to a shorter-term loan.

The Cost

Of course, you'll have some fees and expenses during the process of refinancing. You will be charged the same sort of fees as you did with your existing mortgage. Included in the list will probably be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.

Doing the Math

You might think about paying points to receive a lower interest rate. When you pay (on average) 3% of the loan amount up front, your savings for the term of the refinanced mortgage loan can be significant. You might be told that the points can be deducted on your income taxes, but since tax regulations are ever-changing, we urge you to speak with a tax professional before depending on this.

Another thing about taxes is that once you reduce your interest rate, it follows that you'll also be lowering the interest amount that you will be able to deduct on your taxes. This is one more expense that some borrowers take into account. Call us at 7068605514 to help you do the math.

Most people find that the savings each month quickly outweigh the initial cost of refinancing. We'll help you figure out which mortgage loan program is ideal for you, taking into account your cash on hand, the likelihood of selling your house in the next few years, and what effect refinancing will have on your taxes. Call us at 7068605514 to get you started.

Curious about refinancing? Give us a call: 7068605514.

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Augusta Mortgage Solutions

NMLS#:148529 GA Residential Mortgage Licensee #18861

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