A couple of weeks ago, I had written about the merit of refinancing without paying costs (see: It does not make sense to pay for refinancing your mortgage…).
Following the same thought, this week, I was able to refinance my mortgage at a fixed rate of 5.875% for a 30 year term with a lender's credit of $2,800. Interestingly, I am using the same lender that issued my current 30 year fixed mortgage of 6.125% in December 2006. The closing costs this time are estimated to be $2,400, which is slightly higher than what I paid last time. Since the lender's credit of $2,800 is higher than the estimated closing costs of $2,400 I will get a one time benefit of $400 at closing. My current loan has 28.5 years left on it. Since I plan to pay off the new loan in the same term, I will see a savings of $50.70 a month, or $608.38 a year.
I also had the option to receive a slightly lower rate if I was willing to pay for the closing costs. However as last time, the math again was in the favor of a slightly higher rate with no closing costs.
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Interest On Savings Account
Debt reduction is the reduction of debts either by paying them off or by reducing them in numbers through debt consolidation. Debt reduction can also be termed as the synonym of debt consolidation
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