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Refinance
at a GREAT Rate
up to %125 of your home's value
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Most
homeowners are pretty good at finding ways to save money--they
will clip coupons to save a few dollars at the grocery
store, and price shop for major purchases.
However,
many of these same people continue to pay monthly mortgage
payments with interest rates that are 2%, 3%, or higher
than what may be currently available.
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The
cost difference between a lower interest rate and a higher
rate can be enormous.
For
example, the difference in payments between a $100,000
mortgage at 9.75% and at 7.25% amounts to $176.97 per
month, or $2123.64 per year.
A
person would need to clip a whole lot of coupons to save
that kind of money!
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One
of the biggest advantages of refinancing is the ability
to reduce your loan term without substantially affecting
your monthly payment. The example to the right compares
a 30 year term mortgage, originally financed at 9.25%
APR with 23 years remaining on the loan, with a refinance
for 15 years at 7.25 % APR.
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Original
Loan
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Refinanced
Loan
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Mortgage
Amount
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$100,000
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Mortgage
Amount
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$93,808
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Monthly
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$823.00
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Monthly
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$856.00
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Payments
Left
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276
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Payments
Left
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180
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Total
of Remaining Payments
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$227,148
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Total
of Remaining Payments
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$154,080
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To
summarize, if this loan were to be refinanced for a 15 year
term, the payment would increase $33 a month to $856 but
the term remaining would decrease from 276 months to 180
months, and the total payments remaining would decrease
from $227,148 to $154,080. Note: Closing costs for the refinanced
loan not included in this equation. |
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