Weighing the Options of Refinancing

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Some have said that only if your new interest will be at least 2 points under your current rate, should you refinance your loan. That could have been accurate a while back, but with refinancing dropping in cost recently, it is never the wrong time to think about a new mortgage! A refinance may be worth its cost many times over, because of the benefits that it brings, along with a lower interest rate.


You might be able to lower your interest rate (sometimes substantially) and reduce your monthly payment amount with a refinanced loan. You also may be given the option of tapping into the equity in your property by "cashing out" some funds to renovate your home, consolidate debt, or plan a special vacation. You might have the option to refinance to a shorter-term mortgage loan, enabling you to add to your home equity quicker.

Expenses and Fees

All of these benefits do come with some expense, though. With your refinance, you're paying for a lot of the same things you paid for at the time you obtained your existing mortgage loan. Among these can be settlement costs, an appraisal, lender's title insurance, underwriting fees, and others.

Do the Math

You could offer to pay points (prepaid interest) to gain a lower rate of interest. Your savings on the life of the mortgage may be significant if you've paid up front about three percent of the new loan balance. Please talk to a tax professional before acting on hear-say that any points paid can be deducted on your federal income taxes.

Another expense that borrowers may consider is that a lower rate of interest will lower the interest amount you'll deduct from your taxes. We can help you do the math! Call us at (770) 220-2800.

Ultimately, for most people the total of initial costs to refinance will be paid back soon in monthly savings. We will help you find out which program is right for you, considering your cash on hand, how likely you are to sell your home in the next few years, and what effect refinancing will probably have on your taxes. Call us at (770) 220-2800 to get started.

Curious about refinancing your home? Give us a call: (770) 220-2800.

Home Pointe Mortgage Company

3235 Shallowford Rd. NE,
Chamblee , Georgia 30341