Q & A: Refinancing

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  1. Should I refinance?
  2. Where can I learn more about refinancing?

Should I refinance?

A loan refinance can be advantageous to a homeowner if the current interest rates are lower than their fixed interest rate. But, there are costs involved when refinancing, and therefore the amount of time it will take to make back the refinancing charges and how much longer the borrowers plan to stay in the home must be considered. For example, if refinancing charges are $3000 and the monthly savings of refinancing are $200, it will take 15 months before the financing charges are recouped. If you are interested in refinancing, speak with your lender or financial advisor to learn more about how it could benefit your monthly payments.

 

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Where can I learn more about refinancing?

A loan refinance can be advantageous to a homeowner if the current interest rates are lower than their fixed interest rate. But, there are costs involved when refinancing, and therefore the amount of time it will take to make back the refinancing charges and how much longer the borrowers plan to stay in the home must be considered. For example, if refinancing charges are $3000 and the monthly savings of refinancing are $200, it will take 15 months before the financing charges are recouped. If you are interested in refinancing, speak with your lender or financial advisor to learn more about how it could benefit your monthly payments.

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