Dean Rizzi

Refinance Considerations
February 4, 2009 ·  

When you’re making your decision, there are several things to keep in mind.

If your current interest rate is significantly higher than today’s lowest rates, you may be able to roll your loan costs into the loan and still get a lower rate than you have today, thereby reducing your interest payments and saving money immediately.

Second, if you are planning to stay in your home for at least three to five years, it may make sense to pay “points” (a point equals 1% of the loan amount) and closing costs to get the lowest available rate.

And third, you can avoid laying out cash and still get a low rate by adding the points and closing costs to your new mortgage. Does that mean shouldering a lot of extra debt? Not necessarily. If you’ve had your current mortgage for at least three years, you’ve probably reduced your balance by several thousand dollars. So you may be able to tack your closing costs onto your new loan and still end up with a mortgage that’s smaller than your original one — plus, of course, a lower rate and lower monthly payment.

For More information on refinance considerations go to http://www.drlending.com/Library/Refinance.html

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Comments

7 Responses to “Refinance Considerations”

  1. Michael Monozon on February 4th, 2009 10:15 am

    Hi Dean, it appears that folks with equity should consider locking in the best interest rates in I hear 50 years, and for those with good credit, a downpayment saved up, and a desire to own their own home for the long term benefits of that ownership, have opportunities not available in recent memory, great rates and great prices.
    thank you for the timely post

  2. Larry Franzella on February 4th, 2009 10:49 am

    It is a great time to refinance; I have been calling some clients urging them to look into their refinance options.

  3. Brian Boisson on February 4th, 2009 12:21 pm

    Dean,

    It really does make sense to “crunch” the numbers to see if one should refinance.

    I know you are great at helping folks do that to see what are their best options.

    Thank you for the information.

    Brian

  4. Adam Chinn on February 5th, 2009 8:20 pm

    Hi Dean,
    I have heard many people have been looking into refinancing because of the great interest rates. Thanks for the helpful information.

  5. Jean Joh on February 6th, 2009 6:47 pm

    Hi Dean,
    Thanks for the information regarding refinancing. I meet so many people these days who are thinking about refinancing their homes, and I’ll be sure to bookmark your blog and pass the information on to them.

  6. What’s Buzzing? » Blog Archive » Refinance Considerations | Prucalvoices on February 7th, 2009 9:23 am

    [...] Second, if you are planning to stay in your home for at least three to five years, it may make sense to pay “points” (a point equals 1% of the loan amount) and closing costs to get the lowest available rate. …More [...]

  7. Shokoofeh Nowbakht on February 9th, 2009 9:10 pm

    Thanks Dean. I’m glad you talked about points. Many might not know what points are and how to use them effectively.

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