Is Refinancing in Chandler Worth the Cost?
Curious about refinancing your Chandler home? Call us at 480-390-4995.
Some have said that only if your new interest is at least two points under your current rate, should you refinance your mortgage. Maybe several years ago that was sage advice, but as refinance costs have been falling recently, it could be time to look into it. Refinancing your mortgage has a number of benefits that often make it worth the initial cost several times over.
You may be able to bring down your interest rate (sometimes by a lot) and make smaller mortgage payments with your refinanced mortgage. Additionally, you may have the option of pulling out some of the equity in your property by "cashing out" a sum of money to renovate your home, consolidate debt, or plan a special vacation. With lower interest rates, you might also be able to build your home equity faster by switching to a shorter-term loan.
As you probably expect, you will have some fees and expenses during your the refinance process. You will have to pay the same types of fees as you did with your present mortgage loan. Included in the list will typically be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.
If you refinance your current mortgage loan too soon, there might be a penalty to pay. It depends on the rules of your existing loan. These penalties might just apply for the first couple of years. We will help you sort through the details: contact us at 480-390-4995.
Doing the Math
You might investigate paying points to be given a better interest rate. The amount you'll save on the life of the mortgage may be significant if you have paid up front about three percent of the new loan balance. You might hear that points may be tax deductible, but because tax regulations can be ever-changing, we urge you to speak with your tax professional before making any decisions based on this.
Another thing about taxes is that when you bring down your interest rate, it follows that you will also be reducing the interest amount that you'll be able to deduct from your taxes. This is another cost that borrowers take into account. Call us at 480-390-4995 to help you do the math.
Most borrowers find that the savings per month balance out the up-front cost of refinancing. We can help you find out what your options are, considering the effect a refinance could have on your taxes, if you are likely to sell your home in the near future, and your available cash. Call us at 480-390-4995 to get started.
In the market for a Chandler mortgage? We'd be thrilled to talk about your mortgage needs! Give us a call today at 480-390-4995 or fill out the quick form below.