Mortgage refinancing can lower your interest rate, but you must do the math to see if it’s worth it. It’s best to get quotes from at least three lenders before applying for a new loan. These lenders may include your bank, mortgage broker, or an online lender. Compare the quotes and fees to make sure you get the lowest rate. Find Out – ppp.hk/refinance
Mortgage Refinancing – Do the Math
A lower interest rate will lower your monthly payment and may even eliminate private mortgage insurance. This insurance is typically required if you have less than 20% equity. If you can pay off your private mortgage insurance before the end of the term, you can opt out of this insurance. This insurance can add up to $400 a month.
Other reasons to refinance your mortgage include tapping equity in your home or consolidating debt. However, be careful if you have a serious debt problem. While refinancing may save you money, it can also worsen your financial situation. Historically, a homeowner could expect to save at least 2% in interest by refinancing. However, many lenders say that even a 1% reduction in interest is worthwhile. You can also use a mortgage calculator to estimate how much your new loan will cost.
The first step in the mortgage refinancing process is to research different types of refinancing options available to you. Your lender will review your credit and income information, as well as your assets and debts. This will help them determine whether you’ll be able to repay the new loan.