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It's a great time to lower the
rate on your current mortgage! We have a variety of options
to meet your financial goals!
Mortgage Department 1-866-300-8240 |
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Things to think about when refinancing your home:
- As a general rule of thumb, if you can save 1% on your
current rate, it is worth it to refinance.
- Interest rates change frequently. It
is difficult to predict in which direction they're headed.
If you are happy with a rate, you should “lock-in”
as soon as possible.
- Closing costs on a refinance are usually 3%-5% of your
loan amount. Therefore, for a loan amount of $75,000, expect
to pay between $2,250 and $3,750. (The amount will vary
depending on the number of points that you pay, the settlement
agent that you use, etc.)
- A "point" is equal to one percent of the loan
amount. For example, if you get a mortgage for $75,000 at
7.00% with one point, you will pay $750 in points as part
of your closing costs.
- If you want to convert some of the equity in your house
into cash, you are (in most cases) limited to 90% of the
appraised value.
- One thing to consider is reducing the term of your mortgage.
It could increase your monthly payment, but you will build
up available equity at a faster rate.
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