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.

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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.

Take a moment to bookmark Cost of Refinancing to your favorites so can easily return in the future. Visit Question and Answers - Best Mortgage Rates Refinancing for solutions based on inquiries from other Contributors just like you.

Laurie, I hope you'll come back and visit often. Help me spread the word. Please share my website with your friends.

Best Wishes,

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You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

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