What is the Cost of Refinancing Your Home?
Today’s Homeowner has some good reasons to consider refinancing their home!
With home prices steadily increasing all across the
country, the new market value of your home might be getting you to think about
your refinancing options!However, before you jump at the opportunity to lower you monthly payment or cash out some of that new found equity, let’s take a look at what the cost impact vs. benefits will be.
We’ve also added a very convenient Refinance Calculator to help make the process more comprehensive.
Cost of Refinancing
If your monthly payment goes down by $150, it would
take 24 months of lower payments to recoup the average closing costs. For
example…$150 lower monthly payment x 24 months = $3,600+/- closing costs
Of course, refinancing usually means going back to a
30 year term. Although you are refinancing to a lower interest rate, by
extending your term of your loan, you’ve essentially reset the clock and will be
paying interest for 30 years!
That said, most homeowners who refinance to a lower
rate and reset the 30 year clock often do not necessarily see this as a
major obstacle simply because by doing both, they have decreased their monthly
mortgage payment which often times far outweighs the long term financial
ramifications!
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What Does it Cost to Refinance? |
We hope this article helped you understand the cost of
refinancing your home. If you, or anyone you know is thinking about refinancing
and have additional questions or concerns about the process, please feel free to
call us directly at 978-640-0620, send us a message
or leave a comment below.We also appreciate you sharing this post on your social media networks!
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