There are many reasons you might want to refinance your mortgage – here are a few:

1) You can get a lower interest rate, reduce your interest expense, and lower your monthly payment
2) You can shorten your loan term, get a lower interest rate, and reduce your interest expense
3) You have an adjustable rate mortgage (ARM) and you want to convert it to a fixed rate mortgage
4) You want to / need to remove a co-borrower from obligation
5) You want to use equity in the home to consolidate debt
6) You want to extend your loan term and lower your monthly payment
7) You want to remove mortgage insurance

Whatever your needs or reasons may be, we are here to help you with your refinance.  And while you may have any of these different reasons for modifying your financing structure, we keep the focus on #1 above.   Our goal is to help you get into a lower rate whereby reducing your cost of financing and saving you money.   We continually monitor our clients loans, always looking for a way to help them get ahead financially.

When you purchase a home, you pay for a variety of closing costs.  When you refinance, you will have many of these same closing costs all over again.  These costs can be in the range of .375% to 2.00% of the loan amount – depending on the loan size.

Our preferred approach is to look for a refinance rate that a) is lower than your current rate and b) allows US to pay all or most of your closing costs.  How can we do this, you ask?

Here is an example of what a rate sheet might look like:

Here are the estimated closing costs to refinance this hypothetical $350,000 mortgage:

To put all of this together – you could pay all of the $2654 in estimated closing costs to get the PAR rate ($0 cost) of 6.5% in the example rate sheet above…

– OR –

We could give you a lender credit of $2625 for a rate of 6.875% – which pays all but $29 of the estimated closing costs.

With the 6.875% example above, you begin to save with your very 1st payment on the new mortgage, vs. having to recoup $2654 in closing costs – which could take years, depending on your old rate.

The rate you choose has no impact on our income, so we don’t have a horse in this race.  But we do think that a no closing cost refinance is a great choice, since the benefit is immediate.  However, if you know you will be in the house for 30 more years, and you know that rates won’t continue to fall, then paying your own closing costs would be a wise choice.  Unfortunately, no one knows the future!

When Should You Refinance?