Before you call us for your refinance, there are a few things that you need to ask yourself about your current mortgage. You have to know that refinancing is going to be the right fit for your situation. When rates are this low, they usually are, but it never hurts to know for sure. Here are a few questions to ask before you refinance your mortgage.
Do I have to pay a prepayment penalty on my mortgage?
A lot of mortgages will come with what is called a “prepayment penalty”. Essentially, this is an extra fee that is tacked on when you pay the mortgage off early. A prepayment penalty usually isn’t a deal breaker in a refinance, but it does make a difference in the calculus of the mortgage refinance. It’s not just the lower rate or the cash out, it’s if it will save you money.
Will this save me money?
This is a biggie. The refinance has to save you money on your mortgage in the long run. Otherwise, what’s the point? You have to calculate everything involved in the mortgage, from lowered payments and interest rate, to taking cash out of the house and paying off credit cards, it’s imperative that you make money on this deal.
Will it affect my taxes?
Here’s a big deduction that may change. You can deduct your mortgage interest paid from your taxes at the end of the year. If you are paying less on your mortgage with a lower interest rate, you will have less to deduct. It’s another number to throw into your calculations on whether refinancing right now is worth it.
When you are ready to refinance, or if you want help with some of these questions about your refinance, we are here to help.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?