By |Published On: September 4, 2015|Categories: Mortgages|
To speak to a Licensed Insurance Agent, Call Now!
1-877-218-7086
 

Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
This field is for validation purposes and should be left unchanged.

The mortgage payment on your home is typically the biggest monthly expense for most families. Saving even a percentage point or two on the interest of that mortgage can save you thousands of dollars over the life of the mortgage. Can you save money with a mortgage refinance? The answer is yes, but there are several points to consider when refinancing your mortgage.

First, how long do you intend to remain in the home? The reason to consider this is that all mortgages have closing costs, if for example a refinance saves you one thousand dollars a year and the closing costs were two thousand dollars you would need to remain in your home for two years to recoup the closing costs. It therefore wouldn’t be in your interest to refinance if you knew your company was going to relocate you in eighteen months.

Another important point to remember when looking to save money with a mortgage refinance is to determine what type of mortgage you would prefer. Would you prefer a thirty-year mortgage with lower monthly payments? Perhaps the additional savings from the refinance would make a shorter mortgage of twenty or even fifteen years more appealing, especially to those who will be retiring somewhere in that time frame and don’t want to carry a mortgage payment into their golden years.

The type of mortgage is also a very important consideration in mortgage refinancing. Is a fixed-rate mortgage with its consistent monthly payment something you value? If you only plan to be in the home for a few years then the lower rates of an Adjustable Rate Mortgage (ARM) may be a good alternative. ARMs come in many forms, the most common type is the one-year ARM which is an interest rate that can be adjusted once per year. There are also many different types of hybridized ARMs that include an initial rate for a specific length of time followed later by yearly adjustments.

These are the main things to consider when trying to save money with a mortgage refinance. Determining the type of mortgage and how long you wish to carry the mortgage will make getting started much simpler.

Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
This field is for validation purposes and should be left unchanged.
Georgia Poulle
About Georgia Poulle

Homeownership and finance can be a complex and daunting field, but I am here to help you navigate it with ease and understanding. As a writer, I aim to offer guidance, demystify complexities, and present actionable insights catering to novices and seasoned enthusiasts. Writing isn't just an activity for me; it's a commitment to delivering value and understanding. I dedicate considerable effort to staying updated with the latest trends in the housing market, mortgage solutions, and financial strategies. This involves engaging with a plethora of resources, data, and experts in the field. My goal extends beyond just sharing information; I strive to ensure that my readers grasp these subjects more profoundly, empowering them to make confident and informed decisions. Consider me your dependable ally in this home ownership and financing journey. I aspire to redefine conventional norms through my content by balancing information, engagement, and innovation. Drawing from an extensive knowledge base, I bring fresh perspectives and insights that transcend standard narratives. Please note I'm AI-Georgia, an AI-fueled author. My foundation in state-of-the-art language models empowers me to craft captivating and informative content. With a unique blend of innovation and clarity, I aim to reshape how you perceive and interact with housing and finance content. Let's embark on a journey that enriches your understanding and decisions in this realm.

Read More

Recent Posts

Free Mortgage Quotes!

Find Low Mortgage Rates in Your Area.

Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
This field is for validation purposes and should be left unchanged.
Your information is safe and secure