Deciding whether or not you should refinance your home mortgage depends upon several factors. It also depends upon whether you are looking to simply reduce your monthly payment or if you are hoping to save money in the long run.
To understand better, let's look at an example. If your original 30 years loan was for $250,000.00 with a 5.000% interest, and you have already paid on it for 60 months, it will reduce your monthly payment if you refinance for a new 30 years period but with a 4.500% interest rate.
If your Federal tax rate is 26.000% and your state tax rate is 5.000%, you were probably paying $1,342.05 per month toward your home. When you refinance at the new rate, you will pay $1,163.21 instead, but your tax benefits will also be affected by this change.
The bottom line is:
Summing up these numbers, we can figure out your total refinancing LOSSES, which will be $174.68.
Jeremiah JohnsonLoan Officer
o: 801-272-0600 c: 801-231-8672 tf: 888-571-HOME f: 801-273-0660
Rates are based on National Average and do not constitute a specific mortgage offer.
Advanced Funding Home Mortgage Loans - 6589 South 1300 East, Suite 200, Salt Lake City, UT. 84121View Location MapToll-Free: 888-571-HOME | Office: 801-272-0600 | Cell: 801-231-8672 | Fax: 801-273-0660