Refinance Lane - The Trusted Source for Home Mortgage Loans Free Mortgage Quote
Refinance Home Equity Debt Consolidation New Purchase Home Improvement
 
Need a Refinance Loan?
Get free no-obligation refinance mortgage quotes in minutes.
Get matched with up to 4 Lenders!
Get your quote:
Refinance Mortgage Loan
 
Refinance Quote
Home Equity Quote
Debt Consolidation
New Purchase
Home Improvement
 
Newsletter Signup

Refinance Your Home

Mortgage lenders usually advise that when interest rates drop by two percent, refinancing becomes advantageous. This two percent figure is only a rough guideline, every situation will be slightly different. There are expenses involved with a refinance, although by taking advantage of the lower interest rates, your payments become lower and overall payback amount is less; so each refinance situation will have a slightly different break-even point after which it would produce a benefit.

Typically, most of the expenses and standard closing costs you face with a first mortgage will also be present with a refinance. No-cost refinance loans are available, although they typically carry a higher interest rate than a refinance would otherwise carry.

There are several reasons to refinance, although taking advantage of lower interest rates is a big one. Another reason to refinance a mortgage is to convert from an adjustable rate mortgage to a fixed rate mortgage, or to convert to a shorter term loan to save on overall interest charges. Some people may also wish to refinance a mortgage to obtain cash from existing equity.

When deciding whether or not to refinance, there are two things to calculate. Your monthly savings is an important figure, this is simply the difference between the old mortgage and the new one. The other figure is the overall total cost of refinancing. Consider the break-even point as well: this is the total cost of refinancing, divided by the monthly savings. For example, if it will cost you $2,000 to refinance a mortgage, and your monthly savings are $100, your break-even point is 20 months. Assuming you presently have $2,000 to spare, and you will live in the home for more than 20 months, then the decision to refinance may indeed be a prudent one.

   
The latest news and expert advise on how to best find and secure your mortgage. Sign up for our Mortgage Newsletter Now!

Locate Mortgage Lenders Near You:

Alaska | Alabama | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | Washington DC | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming

Select a loan type:

Debt consolidation | Second mortgage | Home equity | Home improvement | First mortgage | Refinance | Purchase | Cash-out | Jumbo mortgage | FHA streamline | VA-streamline | No equity loan | 125 percent second mortgage | 100 percent second mortgage | 80 percent second mortgage | Fixed rate mortgage | Adjustable rate mortgage

Select a lender:

Chase Manhattan Mortgage | Countrywide Home Loan | GMAC Mortgage | Ameriquest Mortgage | Washington Mutual | CitiMortgage | Ditech Dot.com


 
New Purchase | Home Improvement | Refinance Quote | Affiliate Program | Chicago Homes | Mortgage Lead Program
Copyright 2005 Refinance Lane. All rights reserved. Terms of Use | Site Map
We collect personal information on this site, please read our Privacy Policy.