Financing Tips
Refinance Considerations
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.
My name is David Bradley. I want to thank you for taking the time to visit my website, where I guarantee you'll find plenty of helpful information to assist you in purchasing your new home or refinancing your current mortgage. I am a Mortgage Consultant serving Dallas, Texas and the surrounding areas.
Hi
I currently have a mortgage rate of about 5.75%. The first mortgage is about about 165,000 and the second is about 23,000. I believe that the interest rate on the second is round 9 or 10% and we also pay our own taxes in Frisco. We built the home over six years ago and would like to refinance the loan merging the two loans together and keeping the taxes out of the loan. We also would like to roll over any fees and closing cost into the loan as well as any points bought for the best interest rate as well. Can this be done with no out-of-pocket at closing? And finally we would like to finance it for 15 years Fixed. Thank you.