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Mortgage Refinancing Help

Mortgage Refinancing Help: Management Science

If you are planning to stay in your home for several years, then you can save money by paying points for lower interest rates. You pay up front fees to ensure you have lower interest payments over the course of your loan. Remember, this only works if you keep your mortgage for several months.

 

 
           
Mortgage Refinancing Help : Business: Management : Management Science (605)

 

 

 

Mortgage Refinancing TipAsk for the reissue rate on your title work. If you've taken a mortgage within the past two years, or are using the same lender, you might be granted this option, which can save you as much as 70 percent on your title work. An editor at this magazine didn't know about this potential savings when he refinanced his mortgage; fortunately his lawyer did. The savings more than covered the attorney's fees. However, if it's been several years since you took out a home loan, or if you're using a new lender, you'll likely have to pay for a new title.



Mortgage Refinancing Help: Management Science ()

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Mortgage Refinancing TipIf you are able to get a lower rate that what you currently have, you can save tens of thousands of dollars over the life of your loan. Also, most lenders don't charge as many fees to refinance a mortgage and depending on how much equity you have in your home you may be able to roll the closing costs into your new loan, still have a lower balance than your original loan, a lower rate, and a lower payment.
 

Mortgage Refinancing TipAsk the lender or broker for a comparison of the up-front costs, principal, rate, and payments with and without this rate trade-off.
 

Mortgage Refinancing TipWhen it comes to lowering your rates you will need to weight the benefits of having a lower rate vs. paying points up front. You may end up paying a lot more depending on your choice and how long you plan on keeping your mortgage.
 

Mortgage Refinancing TipIf there is a big difference between the initial interest rate and the APR listed in the ad, it may mean that there are high fees associated with the loan.
 

   

   


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