Most people would agree that it would be nice to have a few hundred dollars extra a month. One way to save money each month is to take a look at your mortgage payments and see how they can be reduced.
If you have a high interest rate on your mortgage there has never been a better time than now to refinance. Chances are that you will be able to get a low interest rate from a variety of competitive lenders who will also offer to eliminate standards fees in an attempt to procure your business.
As fees have dropped or, in some cases, eliminated, you no longer have to worry about the old two percent rule of thumb. Because you are not paying any fees up front to refinance your home, or are paying very little in the way of fees, you have nothing to lose by refinancing, except a higher interest rate. Even dropping your rate a few points can have a dramatic effect on your monthly mortgage payment. If you are paying eight percent interest you should take a look at some of the new rates being offered by different lenders. You may end up saving yourself quite a bit of money in your monthly mortgage payment that will be effective immediately.
Refinancing your mortgage has never been as easy as it is at this moment. In order to get the best interest rate available, make sure that you do your homework and check out the interest rates offered by several competing lenders, including those that advertise online.
In some instances, online lenders can even offer lower rates than those with free standing offices as they do not have to pay an overhead for office maintenance. Be certain to check out not only interest rates but what fees you will be required to pay. Make sure that you are aware, upfront, of exactly how much money refinancing is going to cost you and how much you are going to be saving every month.
As interest rates continue to drop, those with high rates or adjustable rates will find that this is a good time to lock into a new, fixed low rate mortgage. Refinancing for the sake of lowering your interest rate is a wise and prudent financial decision.
Chapter 5 – Refinancing To Eliminate PMI
Perhaps you purchased your home with less than twenty percent of the down payment. It is always a wise decision to pay your own mortgage rather than the mortgage of another person. Even if you have to borrow money to get the down payment, chances are that the move is well worth it. Everyone needs shelter - it a basic human necessity. Either we purchase a dwelling or rent a dwelling. If we purchase, we have the knowledge that the monthly payments we are making is towards a home that we someday hope to own without a mortgage. In addition, there are certain tax benefits to owning a home. Interest paid towards your mortgage is able to be deducted off of your income taxes.
Many people, particularly those who are just starting out, find themselves just barely able to get into their new home. After a few years, however, things loosen up a...