Ever heard the old rule of thumb, you should only refinance if your new interest rate is at least 1/2 - 1 point lower? That may have been true years ago, but with refinancing dropping in cost over the last few years, it's never the wrong time to think about a new loan! Refinancing has a number of benefits that often make it worth the up-front expenditure many times over.

When you refinance, you should be able to lower your interest rate and monthly payment -- sometimes significantly and can save you thousands over the life of a mortgage. You might also be able to "cash out" some of the built-up equity in your home, which you can use to consolidate high interest debt, improve your home, pay college tuition -- whatever! With lower rates and balances, you might also be able to build up home equity faster with a shorter-term new mortgage.

All these benefits do cost something, though. When you refinance, there will be some closing costs, although these should be much lower than when you purchased your home.  These might include settlement costs and other fees, an appraisal, lender's title insurance, underwriting fees, and so on. Ultimately, for most people the amount of closing costs to refinance are made up very quickly in monthly savings and they are included in your loan so no up-front costs are expended.  We'll work with you to determine what program is best for you, considering how likely you are to sell your home in the near future, and what effect refinancing might have on your situation.

Here are some of the reasons you should consider refinancing:

• Lower your monthly payment and interest rate (e.g. savings $130/mo x 5 yrs= $7800 total savings over the next five years)
• Eliminate Private Mortgage Insurance or Lender Paid Insurance
• Eliminate Escrow Account
• Shorten term of loan from 30 year to 20 or 15 year mortgage
• Combine a first and second mortgage
• Pay college tuition
• Pay for home improvements
• Consolidate High Interest Credit Card, Boat, RV, and/or Automobile debt
• Purchase a luxury item for which there is no reasonable financing available

For a refinance quote, please complete our online application. 

Or call Darla at 815-733-6277.