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Are you struggling to make the payments on your high interest mortgage? or,... living from 1 paycheck to the next in Kentucky? Why would you do that if you could get a better rate and a great Mortgage Refinance with the best lending service In "Kentucky"?! We can change all that and more importantly get you the right Mortgage Refinance for your financial future!
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But in recent years, companies have introduced "no cost" and low-cost mortgage refinance programs that eliminate most of the “out of pocket” expenses of refinancing. (These refinance packages compensate with a higher interest rate, or by including some of the costs in the amount that is borrowed.)
With traditional refinancing, the most often cited rule-of-thumb is that the interest rate for your new mortgage must be about 2 percentage points below the rate of your current mortgage for refinancing to make sense. However, with the newer low- and no-cost refinancing programs, it can be worth your while to refinance to obtain a smaller reduction in interest rates.
How long you expect to stay in your home is also a factor to consider. If you'll be moving in a few years, the month-to-month savings may never add up to the costs that are involved in a refinancing.
Homestar Financial can help you find the best loan and options to refinance your home.
Refinance Once Then Do It Again:
When rates fall steadily, refinancing may make sense even if you have done so once already. Bob and Michelle Barbo of Kirkland, Wash. refinanced twice within three months in 1998. In October, they trimmed the rate on their 30-year fixed mortgage by a full point -- from 9.13% to 8.13% -- for a monthly savings of $63. Plus, because home prices in their area had boosted their home equity, they were able to stop paying private mortgage insurance that cost them $120 a month.
To exploit continued decline in rates, the Barbos refinanced again in December. Their new 30-year fixed mortgage is at 7.375%, lopping another $55 off their monthly bill. Since the couple had chosen a no-cost refinancing each time, their total out-of-pocket expenses came to just $400 in appraisal fees. So by the time you read this, they will already have recouped their up front costs. "Now we can use the savings to build up a cash emergency fund," says Bob.
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