When is Refinancing Worth it?

In the market for a new mortgage? We will be glad to help! Call us at (727) 743-1620. Ready to get started? Apply Here.

Ever heard the old rule of thumb that states you should only consider refinancing if the new interest rate will be at least 2 points below your present rate? That could have been sound advice years ago, but with refinancing dropping in cost recently, it's never the wrong time to explore the options of a new loan! Refinancing has a number of benefits that can make it worth the up-front expenditure several times over.


You may be able to lower your interest rate (sometimes significantly) and make smaller mortgage payments with your refinanced loan. You could also have the option to "cash out" some of your home equity, which you may use to take care of higher interest debt, add on to your home, or finance a vacation. You may be able to refinance to a shorter-term mortgage program, enabling you to build your equity quicker.

The Cost

All these benefits do cost something, though. You will pay the same types of fees as you did with your current mortgage. Included in the list may be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.

Doing the Math

You could offer to pay points (prepaid interest) to get a more favorable rate of interest. When you pay (on average) three percent of the loan amount at the start, your savings for the term of the refinanced mortgage can be substantial. Please talk to a tax professional before acting on rumors that these points paid can be deducted on your taxes.

One more expense that borrowers might take into account is that a lower rate of interest will lower the interest amount you will be able to deduct on your taxes. We can help you do the math! Call us at (727) 743-1620.

In the end, for most people the amount of initial costs to refinance are paid back soon in monthly savings. We can help you explore your options, considering the effect a refinance could have on your taxes, if you are likely to sell your home in the next couple of years, and your available cash. Call us at (727) 743-1620 to get started.

Curious about refinancing your home? Call us: (727) 743-1620.

Get a Refinance Quote

Looking to refinance your home? Fill out the following form to get a fast quote from us.

Contact Info
Property Information
Mortgage Information