Refinancing My Mortgage

by Kevin

Ask Kate: Refinancing My Mortgage Hi Kate, I am planning on refinancing my mortgage. I purchased my home for $780,000 with a mortgage loan of $350,000. My current mortgage interest rate is at 5.875 percent on a 30 year fixed rate mortgage.

My monthly house payments are $2070 and change. I currently have $342,000 left to pay. I have excellent credit and can lock in at 4.75 percent. I am trying to figure out the formula in order to make the decision to refinance.

Question 1: The closing costs says $7000, however the broker stated that if I have the original survey, title, and my home owner insurance agents information I will save money on the closing costs. I figured the closing costs would be close to $5000.

Question 2: As the home owners insurance was factored into the initial closing costs when I first bought the home, would that reduce the new closing costs?

Question 3: I think I know the break even period for refinancing my mortgage, but I would rather get your insight.

Question 4: Also, what happens with the amount I have already paid on my current mortgage?

Question 5: Next, what do I multiply and divide to figure out my new monthly payment?

Question 6: Lastly what lines should I scrutinize on the new loan documents?

I greatly appreciate your advice in this matter.

Kate Answers: Refinancing My Mortgage

Dear Kevin,

Thank you for contacting with your mortgage refi questions. I think many homeowners have similar concerns.

Please go to Mortgage Refi Tips And Answers where I have answered your questions in detail. Of course, if you have more questions, let me know.

Please come back to my website again and again in the future. You can invite your friends and relatives to comment on this page or write one of their own just as you did.

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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