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What rate difference is _ to refinance?

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As a loan officer, _ hear this question often. _ people believe to make _ worth it, the rate should be at least _ one to two point . While interest savings is _ important, there are several _ that come into play _ thinking about refinancing.

The first thing I borrowers seeking to refinance __ - what are their .

• Are you seeking a monthly payment?
• Are you wanting to _ on your current equity?
• Are you looking to _ loan terms?

Whatever the answer may __, the main question asked __ consumers should always be - what is my break-even .

The break-even point is monthly savings offset the _ of refinancing the loan. _ is crucial when looking __ refinance your mortgage loan. __ you plan to sell _ home in the near _, you might not even _ there long enough to a break-even point making _ pointless. You will have __ paid closing costs but never reap the benefit __ refinancing.

For example, Henry and bought a house eight _ ago. When they purchased house, the rate was 5% with a loan balance __ $235,000. Today the interest _ for this refinance scenario __ 3.875%. The interest savings __ roughly $2,500 a year. __ costs were 1% of loan or $2,350, so __ long as they plan __ living in the house more than a year, interest savings will pay the closing costs.

Another reason to refinance __ to decrease the term __ the loan. In this , we have Max and who purchased their house __ a 30-year mortgage loan __ 4.75% with a balance __ $200,000. They decided they like to pay off house sooner and are __ at a 15-year mortgage _. With a rate of 3.25%, their monthly payment only _ up $363 a month, they also cut their _ in half.

Is refinancing right for ? Reach out to a loan officer at Great __ Bank to see what _ break-even point is. Who &;_ love saving money!

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