Posted on: 09th Aug, 2010 02:37 pm
if i save 130 dollars a month by refinancing my home is it worht doing so. I will be paying 6495 dollars for total setllement charges.
hi chunni!
welcome to forums!
you can refinance your property in order to get a lower interest rate which will help you in saving $130. however, you should only refinance the loan if you plan to stay in the property for a long period of time. staying in the property for a longer period of time will help you in offsetting the closing costs that you pay while you refinance the loan.
feel free to ask if you've further queries.
sussane
welcome to forums!
you can refinance your property in order to get a lower interest rate which will help you in saving $130. however, you should only refinance the loan if you plan to stay in the property for a long period of time. staying in the property for a longer period of time will help you in offsetting the closing costs that you pay while you refinance the loan.
feel free to ask if you've further queries.
sussane
To add to the forums response, it would take you approximately 50 months (over 4 years to offset the $6495 closing costs). Unless you are planning to stay there longer the 4 years, refinaning on those terms may be not the best option.