Pros And Cons Of Refinancing
by D. Carlino from Texas, USA
Ask Kate about the pros and cons of refinancing my mortgage: Hi Kate, My home loan is with a major bank. I owe $126,000 at 6%. But my house is only worth $118,000. Today I can refi, per my mortgage company, at 4.75% at a total closing cost of about $5200, to be rolled into the refinance. This will bring my upside-down house balance to $132000 for 30 years at 4.75%, saving about $100 month on my mortgage.
D. Carlino continues...
$2700 of the $5200 in mortgage closing costs are my property taxes, which is auto-rolled into the refi. The bank will mail me my current $2700 escrow balance back.
So, is this worth going through with? I see that I'm paying $5200 in mortgage refinance fees but get a refund of $2700 in escrows. So it seems I'm only paying about $2500?
Good or bad? Am I missing something here? They have the papers ready to sign, waiting on me. Thanks.
Kate Answers: Pros And Cons Of Refinancing
Dear D. Carlino,
There are many reasons why and why not to refinance your home loan. The media, big-box banks and financial gurus constantly tell you all about them.
But only YOU can really decide. In fact, your reason to refinance is what matters the most.
Here is a list I made from 20 years of watching my borrowers refinance! I think you'll like it! Fresh Refinance Ideas And Advice
Pros And Cons Of Refinancing - Mortgage Refi Questions
Everyone is asking if their mortgage refi is worth the cost. Here are the 6 most common questions asked by mortgage applicants who are refinancing.
- How much am I actually saving if I refinance my home loan?
- What are cushions and credits?
- How do I know when my refinance breaks even?
- What happens to the mortgage payment I already made?
- How can I calculate my new monthly house payments?
- Which mortgage closing costs should I be watching out for?
Great news! You'll find the answers to these 6 questions
at Is My Mortgage Refi REALLY Worth The Cost?
Pros And Cons Of Refinancing - Compare Mortgages
Catherine found herself in a predicament. She has been offered two refinance choices. But Catherine was suffering from serious overload after attempting to compare mortgages.
Discover how I broke it down for her at Are You Looking For Unique Ways To Compare Mortgages
Follow along and you can compare mortgage options for your refinance
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