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Mortgage RefinanceMortgage Refinance Guide
Step 3: The Many Benefits of a Mortgage Refinance
By: Meghan Carter
You Can Save Money You can save money through a mortgage refinance by getting a lower interest rate (Reed 145). A lower interest rate will save you money by lowering the amount you have to pay in interest. For example, a $200,000 15-year mortgage with a 10% interest rate is $42,823.09 more expensive than one with an 8% interest rate. When you look for a mortgage refinance, you must check to make sure your new interest rate will be lower than your current interest rate. There are three ways that your new interest rate will be lower than your old interest rate: market interest rates have fallen, you have a better credit score than you had in the past or you switch from a fixed-rate mortgage to an adjustable-rate mortgage. The other way to save money through a mortgage refinance is by getting a shorter-term length. Having a shorter shorter-term length will decrease how much you have to pay in interest. You Can Get Extra Cash Mortgage Refinance Guide Sections: Introduction to Our Mortgage Refinance Guide Step 1: The Basics of a Mortgage Loan Refinance Step 2: When is the Right Time to Refinance Your Mortgage Step 3: The Many Benefits of a Mortgage Refinance Step 4: Which Type of Home Mortgage Refinance Loan to Choose Step 5: Interest Rates and Mortgage Refinance Loans Step 6: How to Pick a Term Length When You Refinance Home Mortgage Loans Step 7: What to Ask When You Refinance a Mortgage Loan Step 8: How Closing Costs Finance a Home Mortgage Refinance Sources:
"Mortgage Calculator." Bankrate.com. http://www.bankrate.com/brm/calculators/mortgages.asp. 9 Sept. 2006. Reed, David. Mortgages 101. New York: AMACOM Div American Mgmt Assn, 2004. |
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