A reverse mortgage is designed to help elderly home owners benefit from their equity without having to sell their house or make payments. read more
What does it cost to refinance? What are the benefits?Some inexperienced brokers say you should only refinance if your new interest rate is at least two points lower. This may have been true years ago, but with the cost of refinancing dropping over the last few years, it's never the wrong time to think about a new loan! Refinancing offers a number of benefits that often make it worth the up-front expenditures many times over.As a home owner you may choose to refinance for several reasons; you might be able to lower your interest rate and monthly payment. You may also be able to "cash out" some of the equity in your home, which you can use to consolidate debt, improve your home or take a well deserved vacation! With lower rates and balances, you may also be able to build up equity faster with a new shorter-term mortgage.These benefits do come at a cost. When refinancing, you're paying for most of the same things you paid for when you obtained your original mortgage. Things like settlement costs, appraisal fee, title insurance, underwriting fees, and so on.
Ultimately, for most people the amount of up-front costs to refinance are made up very quickly in monthly savings. I'll work with you to determine what program works best for you, considering your cash on hand, how likely you are to sell your home in the near future, and what effect refinancing might have on your taxes.
Give me a call -- I’d love to hear from you!
