Weighing the Options of Refinancing
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Ever heard the old rule of thumb that says you should only refinance if your new interest rate will be at least two points below your current rate? Maybe that was good advice a number of years ago, but as refinance costs have been getting lower, it may be time to look into it. A refinance may be worth its cost several times over, because of the benefits that come, in addition to a reduced interest rate.
You may be able to bring down your interest rate (sometimes significantly) and reduce your monthly payment amount with a refinanced mortgage loan. You could also have the ability to "cash out" a portion of your home equity, which you may use to consolidate debts, make home improvements, or take a vacation. With lower rates, you might also be able to build your home's equity faster by changing to a shorter-term loan.
All these advantages do cost something, though. You'll have to pay the same sort of fees as with your existing mortgage loan. Included in your costs may be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other expenses.
Do the Math
Most people find that the monthly savings balance out the initial expenses of refinancing rather quickly. We can help you calculate the pay back period of refinancing to see if it is worthwhile. Call us at (512) 577-6222 to get started.
Curious about refinancing? Call us at (512) 577-6222.