Refinancing Your Home
Why refinance your mortgage.
Refinancing your home. Interest rates can change. But it s not always a slam dunk decision. Your situation may help you decide between home equity financing or a.
It costs money to refinance there are closing costs just like when you took out your original mortgage expect your refinance to run anywhere from 1 500 to 5 000 says huffman. Refinancing and the us economy the issues regarding the costs and benefits of mass refinancing by the american people. Pay your home off faster you may be able to refinance into a loan with a lower interest rate and a shorter term.
Refinancing a mortgage replaces your home loan with a new one. For a 30 year fixed rate mortgage on a 100 000 home refinancing from 9 to 5 5 can cut the term in half to 15 years with only a slight change in the monthly payment from 805 to 817. The new loan should ideally have better terms or features that improve your finances to make the whole process worthwhile.
Maybe you want to lower your monthly payment change the term of your loan or tap into the equity in your home for other expenses. Refinancing your home a housing specialist s home ownership fact sheets with information on the best time to refinance. Because your withdrawing cash from your home s value the new mortgage will be higher.
Try our easy to use refinance calculator and see if you could save by refinancing. Refinancing involves replacing an existing loan with a new loan that pays off the debt of the first one. However before you decide to refinance it s important to understand how the process works and to evaluate the pros and cons for your individual situation.
Different loans meet different needs. Estimate your new monthly mortgage payment savings and breakeven point. The savings in interest payments could be substantial for example if you re.