Mortgage Refinancing

Many people believe that once a mortgage is made that it can't be changed. Those people lose thousands of dollars that could have been saved by lower refinance mortgage rates. Whether or not you should get a refinance mortgage loan varies from situation to situation. This is why you are not obligated into accepting the loan you are applying for with us. Our lender will give you their low interest rate quote so you can figure out if it's worth it for you to get a refinance mortgage loan. We also provide you with a mortgage refinance calculator to help you figure out these new refinance mortgage rates.

It generally might cost you approximately $2,000+ dollars to get a refinance mortgage loan to a lower interest rate. This is why most people wait until the mortgage interest rate changes more than 2% to get a refinance mortgage loan. Holding out for these low interest rates that quite possibility might not drop that much lower, could cost you thousands of dollars.

Now lets say you take out a mortgage loan for $100,000 for 30 years at 7.5% interest. Five years later you decide to get a refinance mortgage loan with your mortgage refinance rates at 6.0% interest with the remaining balance of $94,617.44. You just lowered your monthly mortgage payments from $699.29 to $609.62 at the savings of $89.67 a month. Now lets say to get a refinance home mortgage loan you have to pay 2 points ($946.17 x 2) plus $1,000 in taxes and fees. As of now it cost you $2,892.34 to take out a refinance mortgage loan for the savings of $89.67 a month. You would have to stay at this house for about 33 months to gain back your initial investment of $2,892.34 from the refinance mortgage loan.

Before you decide to get a refinance mortgage loan it is always a good idea to figure out what your savings will be. You must also factor in how long you plan on remaining at your current residence. It can be vary easy to save money by a refinance mortgage if you plan on remaining at that residence for a long period of time. But then again if you don't plan on staying for a long period of time it might not be worth refinancing a mortgage loan unless interest rates are quite a few points lower than they were with the original mortgage.