Thinking About Refinancing?
Refinancing your home can be a smart decision, especially when lower interest rates are available. By refinancing, homeowners can often score lower payments, achieve a quicker pay-off, and lock down a lower interest cost. However, before you jump feet first into the refinancing pool, take the following into consideration.
Do the math. See how much refinancing costs, then check how much you'd save on monthly payments to figure how long it would take to break even.
Check your credit reports at AnnualCreditReport.com and correct any errors.
For example: Let's say you have a 30-year, $300,000 mortgage at a 5.5 percent interest rate. Your monthly mortgage payments are $1,703.
If you refinance to a 4 percent rate, with monthly payments of $1,449, you'll save $254 a month. If your refinancing costs $3,000, you can break even in a year.
Or maybe your priority is paying off the mortgage faster. If you have a 30-year, $300,000 mortgage at 5.5 percent, you will pay more than $300,000 in interest over the life of the loan. Refinance into a 15-year loan at 3.5 percent, and your monthly payments will rise to $2,145. But you will pay only $86,000 in interest over the life of the loan.
Reprinted with permission from RISMedia, publisher of Real Estate magazine. www.rismedia.com
John Hatcher
Keller Williams Realty - The Hatcher Group
6 Deering Street | Portland, Maine 04101
207-775-2121 Office | 207-775-2122 Fax
http://JohnHatcher.us
John@JohnHatcher.us
Refinancing your home can be a smart decision, especially when lower interest rates are available. By refinancing, homeowners can often score lower payments, achieve a quicker pay-off, and lock down a lower interest cost. However, before you jump feet first into the refinancing pool, take the following into consideration.
Do the math. See how much refinancing costs, then check how much you'd save on monthly payments to figure how long it would take to break even.
Check your credit reports at AnnualCreditReport.com and correct any errors.
For example: Let's say you have a 30-year, $300,000 mortgage at a 5.5 percent interest rate. Your monthly mortgage payments are $1,703.
If you refinance to a 4 percent rate, with monthly payments of $1,449, you'll save $254 a month. If your refinancing costs $3,000, you can break even in a year.
Or maybe your priority is paying off the mortgage faster. If you have a 30-year, $300,000 mortgage at 5.5 percent, you will pay more than $300,000 in interest over the life of the loan. Refinance into a 15-year loan at 3.5 percent, and your monthly payments will rise to $2,145. But you will pay only $86,000 in interest over the life of the loan.
Reprinted with permission from RISMedia, publisher of Real Estate magazine. www.rismedia.com
John Hatcher
Keller Williams Realty - The Hatcher Group
6 Deering Street | Portland, Maine 04101
207-775-2121 Office | 207-775-2122 Fax
http://JohnHatcher.us
John@JohnHatcher.us
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