This can be accomplished in a variety of ways, but the most common way is to take the monthly savings you generate by refinancing your home and divide it into the capital idea closing costs required to complete the refinance. If you can breakeven in 2 to 3 years, this in most cases is normal although in some instances taking longer to recuperate still very well make sense if you plan to keep the loan.
Alternatively, another option is to take the interest savings that you’re going to generate by completing a refinance in relationship to the current interest you’ll pay on your loan moving forward.
Not sure how to calculate the numbers? Call Scott at 707-217-4000.
Or get started with a complementary mortgage rate quote to see how the numbers play out.
Share:
RELATED MORTGAGE ADVICE FROM SCOTT SHELDON
New Mortgage Loan Limits for 2023
The Federal Housing Finance Agency announced on Tuesday, November 29th the new loan limits for…
How to avoid getting a jumbo loan due to Coronavirus
Securing mortgage loan financing right has become a little bit of a challenge for some…
COVID_19 How a mortgage forbearance works
As the coronavirus continues to worsen and make life difficult for many families, one risk…
How to get a mortgage if you’ve been furloughed to do to COVID_19
The coronavirus has undoubtedly created a significant amount of challenges for mortgage companies and families…
View More from The Mortgage Files:
begin your mortgage journey with sonoma county mortgages
Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!