Pros And Cons Of Refinancing

by D. Carlino
(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.

D. Carlino continues... 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.

So I'm out about 20 bucks. This will bring my upside-down house balance to $132000 for 30 years at 4.75%. Saving about $100 month on my mortgage.

$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.

1. How much am I actually saving if I refinance my home loan?
2. What are cushions and credits?
3. How do I know when my refinance breaks even?
4. What happens to the mortgage payment I already made?
5. How can I calculate my new monthly house payments?
6. 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.

D. Carlino, one more thing. I'd like to hear back from you. Let me know if Pros And Cons Of Refinancing was helpful to you. Comment here on the pros and cons of refinancing my mortgage.

Or Ask Kate another question here.

Best wishes,

Return to the home page of Get Your Best Mortgage Rate from Pros And Cons Of Refinancing My Home Loan

Tell Your Friends

I want to reach as many home buyers and homeowners as possible with my websites. But I need your assistance.

So please help me spread the word about Pros And Cons Of Refinancing My Mortgage with your friends. Just use these easy buttons at Get Your Best Mortgage Rate.

The information you obtain at this site is not, nor is it intended to be, a substitute for financial, real estate or legal advice. You should consult an attorney, accountant, lender or real estate agent, as applicable, for advice regarding your individual situation. Comments and opinions found here are not necessarily those of Get-Your-Best-Mortgage-Rate.com