Tips for Refinancing Your Loan

We have included below some tips to keep in mind as you consider refinancing your current mortgage loan:

• In general, refinancing is best if you plan to stay in your home for at least three more years.
  
• In general, refinancing costs about 3 to 6 percent of your mortgage’s outstanding principal.
  
• If your current mortgage has a clause penalizing you for early payment, this cost could be higher.
  
• Shop around – call several mortgage brokers to compare interest rates, terms, closing costs and fees.
  
• Ask your mortgage broker how much you will pay in closing costs and fees to complete the refinancing process and get it in writing.
  
• Ask your mortgage broker how long the interest rate will last and get it in writing.
  
• Be sure you understand what type of new mortgage loan you are getting – is it a fixed-rate loan, an adjustable rate mortgage (ARM), etc.
  
• Ask your mortgage broker to calculate not only how much your monthly payment will be reduced, but also how long it will take you to recover the cost of refinancing. Are you really saving money?

Although mortgage rates have slightly increased, many consumers are still taking advantage of this opportunity to refinance their mortgage.  Our experienced team of loan professionals will take the time to explore options with you and select a loan program from the many types available that will meet and even exceed your expectations.  We will also ensure that you are fully informed of the cost of all fees and closing costs associated with your loan so there are no suprises. There are many potential benefits to be realized from a well-structured loan refinance transaction and we are committed to providing you with the right loan for your personal situation.