Weighing the Options of Refinancing

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It has been said that only if your new interest will be at least 2 points below your current rate, should you refinance your mortgage. That might have been accurate years ago, but as refinancing has been costing less in recent years, it is never the wrong time to consider a new mortgage loan! Refinancing your loan has a variety of benefits that will often make it worth the initial expenditure a few times over.


When you refinance, you may be able to reduce the interest rate and monthly mortgage payment amount, sometimes significantly. Additionally, you could be given the option of tapping into your home equity by "cashing out" some funds to fix up your home, consolidate debt, or take your family on a vacation. You could be able to refinance to a shorter-term mortgage program, enabling you to build your equity faster.

Expenses and Fees

All these benefits do come with some expense, though. When you refinance, you're paying for a lot of the same things you were charged for during your current mortgage. Included in your costs will probably be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other expenses.

Doing the Math

You might think about paying points to reduce your interest rate. Your savings on the life of the mortgage may be substantial if you've paid up front about three percent of the new loan balance. You may be told that the points may be deducted on your income taxes, but as tax regulations are difficult to keep up with, please consult with your tax professional before depending on this.

Another thing about taxes is that if your interest rate is lowered, of course you will also be lowering the paid interest amount that you will be able to deduct from your taxes. This is one more expense that borrowers consider. We can help you do the math! Call us at (321) 777-7277.

Most people find that the savings each month balance out the initial expenses of refinancing. We can help you explore your options, considering the effect a refinance might have on your taxes, how likely you might be to sell in the near future, and your available cash. Call us at (321) 777-7277 to get started.

Want to know more about refinancing your home? Give us a call at (321) 777-7277.

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