| When refinancing your home, it's helpful to know a few | | | | costs. The best way to compare refinance lenders is |
| things about refinancing. When you refinance, you | | | | to analyze all of the expenses. |
| usually pay off the old loan and sign for a new loan, | | | | Should I pay down points on my loan? If you plan to |
| whether you are refinancing your 1st mortgage, | | | | stay in your home for more than 3 years, it may be |
| second mortgage or home equity loan. The expense | | | | smart for you to consider paying down points on the |
| that comes in to play when refinancing are the new | | | | loan which reduces your interest rate. That pays off if |
| closing costs and points charge for getting a new loan. | | | | you plan to stay in your home for a while, but if you |
| How much can you expect in closing costs for a | | | | plan to sell the home soon, you may lose more money |
| refinance? Usually between 3-6% of the total loan | | | | paying down the points on the loan. |
| amount. So, for a loan amount of $150,000, you can | | | | How can I know if I should refinance or not? If you are |
| expect to pay around $7 in fees. Usually, a company | | | | interested in finding out whether it would save you |
| that will say that have no closing costs, will also charge | | | | money in the long run to refinance with the current |
| a higher interest rate to compensate. The mortgage | | | | interest rate, there are financial calculators online that |
| broker has to make money somehow, they will either | | | | can help you determine if you would save money |
| charge a higher interest rate or charge higher closing | | | | refinancing your house or not. |