Is Refinancing Worth the Cost?
Are you looking for a new mortgage loan? We will be glad to assist you! Give us a call at (816) 525-8000 & (81. Want to get started? Apply Online Now.
It has been said that only when your new interest will be at least 2 points under your current rate, should you refinance your loan. That might have been valid years ago, but since refinancing has been costing less recently, it is never the wrong time to consider a new mortgage! Refinancing has a number of benefits that can make it worth the up-front cost many times over.
Advantages of Refinancing
You might be able to bring down your interest rate (sometimes by a lot) and make smaller monthly payments with a refinanced loan. You could also be able to "cash out" a portion of your equity, that you may use to take care of higher interest debt, make home improvements, or take a vacation. With lower interest rates, you might also get the chance to build your home equity more quickly by switching to a shorter term mortgage loan.
Fees and Expenses
All these benefits do cost something, though. You'll pay the same sort of fees as with your existing home loan. Included in your costs will typically be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other expenses.
Do the Math
Paying discount points can result in a better interest rate. When you pay (on average) 3% of the loan amount initially, the savings for the life of the new loan can be substantial. You may hear that these points may be deducted on your income taxes, but as tax regulations can be difficult to keep up with, we urge you to consult a tax professional before making any decisions based on this.
Speaking of taxes, when you bring down your interest rate, it follows that you will also be reducing the paid interest amount that you will be able to deduct from your federal income taxes. This is another expense that some borrowers take into consideration. We can help you do the math! Call us at (816) 525-8000 & (81.
Most people find that the monthly savings outweigh the up-front expenses of a refinance. We'll work with you to determine what mortgage loan program is the best fit for you, considering your cash on hand, the likelihood of selling your residence in the near future, and what effect refinancing could have on your taxes. Call us at (816) 525-8000 & (81 to get started.
Curious about refinancing? Give us a call at (816) 525-8000 & (81.
Get a Refinance Quote
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