Is Refinancing Worth the Cost?
Shopping for a mortgage loan? We can assist you! Call us at (816) 525-8000 & (81. Ready to begin? Apply Now.
Have you ever heard the pearl of wisdom that says you should only refinance if your new interest rate will be at least two points under your present one? That may have been valid years ago, but as refinancing has been costing less over the last few years, it's never the wrong time to explore the options of a new mortgage loan! Refinancing your loan has a number of advantages that will often make it worth the up-front expenditure a few times over.
When you refinance, you might have the ability to lower your interest rate and monthly payment amount, sometimes by a lot. Additionally, you might have the option of tapping into the equity in your property by "cashing out" some money to remodel your home, consolidate debt, or plan a special vacation. You might be able to refinance to a shorter-term mortgage loan, giving you the ability to build up your home equity faster.
Expenses and Fees
Of course, you will have some fees and expenses during your the refinance process. When you refinance, you are paying for basically the same things you were charged for at the time you obtained your original mortgage. Included in the list can be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other expenses.
Do the Math
You could need to pay points (prepaid interest) to attain a lower rate of interest. The amount you will save over the life of the mortgage may be substantial if you've paid up front about 3% of the new loan balance. You may hear that these points may be deducted on your income taxes, but since tax regulations are difficult to keep up with, we urge you to speak with a tax professional before depending on this.
An additional cost that a borrower may consider is that a reduced rate of interest will reduce the interest amount you will deduct from your taxes. We can help you do the math! Call us at (816) 525-8000 & (81.
Most people find that the monthly savings balance out the initial cost of refinancing. We can help you explore what your options are, considering the effect a refinance could have on your taxes, if you are likely to sell your home in the next couple of years, and your money on hand. Call us at (816) 525-8000 & (81 to get started.
Curious about refinancing? Call us: (816) 525-8000 & (81.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.