With all the Mortgage information available to Charlotte Homeowners, it’s often tough to decide is a home owner should consider refinancing.
Simply lowering your mortgage interest rate may or may not be in your best interest. There are two main factors to consider in order to make a great home loan decision:
- Will you reduce the Total Cost of your home loan?
- Will you recoup the closing costs of your home loan in a reasonable time?
It’s simple to say, “Hey, if I lower my payment by $100, I should refinance”. However, if you save $100 a month, but extend your existing loan from 26 years remaining back out to 30 years, you will actually spend more on your Home Loan than if you never refinanced your home.
The Total Cost of a Home Loan is a key number to look at. The Total Cost is the sum of all the interest you will pay on a loan, plus the closing costs you would pay for a new home loan.
At Fairway Independent Mortgage in Charlotte, we try to make it easy for Charlotte Home Owners to decide if refinancing their home loan is the right thing to do. The easy way to check is to use our Mortgage Calculators on this website. The “How much will I save by refinancing my loan?” calculator gives you a quick look (takes less than a minute) at the total cost of a new mortgage loan compared to your current mortgage loan.
If this calculator shows you a worthwhile Total Savings and Monthly Savings, then give us a call and one of the Mortgage Planners will create a custom “Total Cost Analysis” for you that will show you how long it takes to recoup your closing costs and the Total Cost of a new Home Loan for your Charlotte Home. We can be reached at 704-541-1172 or send us an email.
2 Comments
Great advice and I believe that many, who are planning a move in the next 24 months, still make the mistake and re-fi, forgetting about the upfront costs associated with the loan.
@Debe, I have seen that happen quite often. For many, the process of refinancing gets people thinking about their housing and they end up deciding to move shortly after.
A no closing cost refinance is an option we show our customers which can save them money of their payments without sinking in a bunch of closing costs.