| HOW TO SAVE MONEY WITH A MORTGAGE REFINANCE |
Now that you know the benefits with home mortgage refinance, let us now go to
the steps. The first thing you need to consider when you refinance your home is
the current trend in mortgage rates. Most major Sunday newspapers feature this
type of information in their real estate section. Find out the current mortgage
rates from local dailies or online quotes. You can also contact a mortgage
broker and speak with a real person about your home refinance questions.
If this is not your first attempt at getting mortgage financing for your home,
then you probably know that there are actually several types of loans. The
second step therefore is to identify the type of mortgage you want - whether it
is fixed, adjustable, or a combination of the two. Remember that each type may
mean a different set of advantages and disadvantages for your home refinance
venture.
The third step is comparison shopping. Compare the new mortgage rates to
that of your current mortgage. To do this, find out what possible monthly
payments are being spoken of with your new loan.
You can use the amount you owe on the mortgage to calculate what the new
monthly payment would be by using a financial calculator or an online mortgage
calculator. You'll also need to know the new loan amount (current loan amount
plus closing costs, such as points, title and escrow fees - unless you plan to
pay for them out of your pocket - the new interest rate, and the number of
months of the new loan).
To find out how much you can save with your home refinance mortgage,
subtract your current monthly mortgage payment from the new monthly mortgage
payment. The remaining balance is your monthly savings.
After you get the figure for your savings, divide it into the total cost
of the loan, which includes points, title, and escrow fees. The resulting
figure is the number of months it will take for you to recoup your investment.
Then finally, determine how long you plan to stay in your home. If you
plan to live in your home longer than it will take to recoup your investment,
then to refinance your home is probably a good idea.
the steps. The first thing you need to consider when you refinance your home is
the current trend in mortgage rates. Most major Sunday newspapers feature this
type of information in their real estate section. Find out the current mortgage
rates from local dailies or online quotes. You can also contact a mortgage
broker and speak with a real person about your home refinance questions.
If this is not your first attempt at getting mortgage financing for your home,
then you probably know that there are actually several types of loans. The
second step therefore is to identify the type of mortgage you want - whether it
is fixed, adjustable, or a combination of the two. Remember that each type may
mean a different set of advantages and disadvantages for your home refinance
venture.
The third step is comparison shopping. Compare the new mortgage rates to
that of your current mortgage. To do this, find out what possible monthly
payments are being spoken of with your new loan.
You can use the amount you owe on the mortgage to calculate what the new
monthly payment would be by using a financial calculator or an online mortgage
calculator. You'll also need to know the new loan amount (current loan amount
plus closing costs, such as points, title and escrow fees - unless you plan to
pay for them out of your pocket - the new interest rate, and the number of
months of the new loan).
To find out how much you can save with your home refinance mortgage,
subtract your current monthly mortgage payment from the new monthly mortgage
payment. The remaining balance is your monthly savings.
After you get the figure for your savings, divide it into the total cost
of the loan, which includes points, title, and escrow fees. The resulting
figure is the number of months it will take for you to recoup your investment.
Then finally, determine how long you plan to stay in your home. If you
plan to live in your home longer than it will take to recoup your investment,
then to refinance your home is probably a good idea.
How To Refinance Your Home Mortgage...
'You Mean I Can Spend Less And Save More??'
'You Mean I Can Spend Less And Save More??'
Have you been reading the news about the economy? In an effort
to turn around the recession, the FED has been slashing through
interest rates with speed and vigor usually seen only in Japanese
Samurai movies.
Take out that mortgage bill, and see what rate you are paying. 7%?
6%?
We'll use an average mortgage amount of $200,000, and assume
your current interest rate is 7% at a 30 year fixed loan. Ergo, your
payment is $1,330.60 per month.
Do you have any idea JUST HOW MUCH money you can save by
refinancing now at a lower rate?
With the Fed rate cuts, loans at 5% are easily available. Just that 2%
drop in interest will lower your payment on the SAME LOAN to
$1,073.64...saving you $237 per month!!
Let's add that in...
1st-Month Savings on Refinancing at lower rate: $237
Ongoing monthly savings: $237/month
And you can roll in your closing costs to the loan, so you don't pay
anything up front, and STILL be saving this much (a few thousand
over a 30-year loan just knocks off about $20 per month from your
savings, which is already factored in above).
to turn around the recession, the FED has been slashing through
interest rates with speed and vigor usually seen only in Japanese
Samurai movies.
Take out that mortgage bill, and see what rate you are paying. 7%?
6%?
We'll use an average mortgage amount of $200,000, and assume
your current interest rate is 7% at a 30 year fixed loan. Ergo, your
payment is $1,330.60 per month.
Do you have any idea JUST HOW MUCH money you can save by
refinancing now at a lower rate?
With the Fed rate cuts, loans at 5% are easily available. Just that 2%
drop in interest will lower your payment on the SAME LOAN to
$1,073.64...saving you $237 per month!!
Let's add that in...
1st-Month Savings on Refinancing at lower rate: $237
Ongoing monthly savings: $237/month
And you can roll in your closing costs to the loan, so you don't pay
anything up front, and STILL be saving this much (a few thousand
over a 30-year loan just knocks off about $20 per month from your
savings, which is already factored in above).
Rob Hunter
| Ready to get started, or get more information? The links on the right offer some great resources to get free no-obligation mortgage refinance quotes. I encourage you to visit them to get free information about refinancing your home mortgage. Good luck! |
'Ok that sounds great, but HOW do I go about Refinancing my
Home Mortgage?
Home Mortgage?
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