Debt Management > Ways to Reduce Fixed Expenses > Mortgage Refinancing |
Debt Kit -- Settle unsecured debts for less than half of amount owed Credit Kit -- Improve credit rating and reduce monthly bills by $200+ |
There are several ways to save money when you refinance your mortgage loan to take advantage of a lower interest rate. A lower mortgage interest rate can reduce your monthly payment significantly when the mortgage loan is $100,000 or more, and there are ways to reduce the costs associated with refinancing as well. They are as follows: Use the same lender that holds your original mortgage The lender who holds your current mortgage might agree not to charge you certain closing costs, such as the appraisal, credit check and title search fees if you refinanced your mortgage loan with them. Your current mortgage lender can also update your title insurance, rather than obtaining a new policy, saving you even more. (Since the title insurance is with the same company, ask that they give you a discount of about 30-40%.) The best reason of all, however, is that your lender might agree to give you a lower interest rate than the competition. After all, it doesn't want to lose your business. Get rid of private mortgage insurance If the equity in your home is 20 percent or more, you are no longer required to have private mortgage insurance. However, very few lenders will every notify you of this fact. If you are no longer required to have private mortgage insurance, request that it be discontinued when you refinance. (Have it discontinued even if you aren't refinancing and save money.) Refinance your mortgage to lower monthly payments and pay down debt While obtaining a 15 year mortgage will result in paying less in interest and build equity faster, some people might be better off obtaining another 30 year mortgage at a lower rate to lower their monthly payments. The extra money now available each month could be used to pay off debt. For example, one could refinance a $80,000, 30 year, 9% mortgage to another 30 year, 7% loan and save $112 each month. And, your mortgage interest might be deductible on your income taxes. |
Debt Kit -- Settle unsecured debts for less than half of amount owed Credit Kit -- Improve credit rating and reduce monthly bills by $200+ |
Mortgages: Save Money When Refinancing |
Debt Management > Ways to Reduce Fixed Expenses > Mortgage Refinancing |
