Cost of Refinancing
by Laurie Oates
(Asheville, North Carolina)
Ask Kate: Cost of Refinancing I am looking to refinance a home loan - currently I owe $96,500 on a house valued at $140,000 to $150,000 in Asheville, NC. It was a 30 year fixed rate mortgage at 6.625 percent. We are down to 27 years left on the term.
I would like to refinance to a 25 or maybe even 20 year if I could get a 4.25 - 4.50 percent loan. Are there really any loans out here that would make the cost of refinancing worth it?
Kate Answers: Cost of Refinancing
Hi Laurie, The cost of refinancing to one homeowner carries one meaning and to another something quite different.
What would make a refinance worthwhile to you?
- Lower monthly house payments by $50 or $300?
- No closing costs?
- Getting rid of an adjustable rate mortgage?
- Removing a co-borrower from title
- Extracting equity in the form of cash
- Or as Laurie mentions, shortening the term?
So much depends on your goals and your dreams. Do you want to be mortgage free in 20 years? If so, a 20 year fixed rate mortgage
is worth exploring. Be sure to visit the 20 year mortgage page where you will find links to a variety of loan programs to coincide with your plans.
Don't miss this: Here is one way to calculate when your mortgage refi
will reach a break even point.
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