Welcome to the HomeInUtah.com Blog

2017-05-18 12:59:37
Reasons to Refinance

Regardless of the reason to refinance a home, the basic question to ask is: “Do you plan to live in the home long enough to recapture the cost of refinancing?” There are always expenses involved in refinancing which can be paid in cash or rolled into the new mortgage.

From a strictly financial standpoint, the break-even point is achieved when the cost of refinancing has been recaptured by the monthly savings. It would take approximately 23 months to recapture $4,000 of refinance costs with a lower payment of $175 a month.22683914-250.jpg

  1. Lower the rate
  2. Shorten the term so that the loan will build equity faster and be paid off sooner.
  3. Lower your payment to reduce your monthly cost of housing.
  4. Convert an ARM to a FRM to stabilize your payment due to concern of rising interest rates.
  5. Cash out equity to be able to use the money for another purpose.
  6. Combine a first and second mortgage.
  7. Consolidate personal debt so the interest is tax deductible.
  8. Payoff higher cost debt such as credit cards, student debt, etc.
  9. Remove a person from a loan as in the case of a divorce.

Points paid to purchase a principal residence are tax deductible completely in the year paid. However, the points must be spread over the life of the mortgage on a refinance. For that reason, consider getting a “par” value loan with no points. It may have a slightly higher rate but the interest will be fully deductible and it will lower the cost of refinancing.

Determine the break-even point on your situation by using the Refinance Analysis . Call for a recommendation of a trusted mortgage professional.

 
Blog Archive
2017-08-15 12:32:35
Shorter Term - More Savings

2017-08-08 10:36:28
Home Energy Aware

2017-08-01 14:57:03
Assumptions are an Alternative

2017-07-31 14:15:47
Home Safe Home

2017-07-24 15:34:43
Other People's Money for College

2017-07-12 11:52:23
Family & Friends Mortgage

2017-06-26 15:47:36
Don't Have a CLUE?

2017-06-21 15:10:06
What Can You Expect?

2017-06-19 11:00:46
Emergency Kit for the Car

2017-06-05 12:44:58
Hands-Only CPR

2017-05-29 09:26:16
Must Be This Tall to Ride

2017-05-23 12:28:02
Good Info - Good Decisions

2017-05-23 12:03:56
Reasons to Refinance

2017-05-23 11:27:10
An Alternative to Paying Tax Today

2017-05-22 14:38:05
Would-be Buyers with Student Debt

2017-05-18 13:26:06
An Alternative to Paying Tax Today

2017-05-18 12:59:37
Reasons to Refinance

2017-05-18 12:56:02
Good Info - Good Decisions

2017-05-08 10:41:10
Would-be to Should-be

2017-05-03 07:31:01
Indecision May Cost More

2017-04-09 19:51:20
Lower the Rate - Deduct the Interest

2017-04-05 17:45:27
Rentals are IDEAL

2017-03-30 13:38:28
Important Estate Documents

2017-03-27 13:09:21
Save the Cost of Mortgage Insurance

2017-03-14 13:53:56
Tax Benefits of Home Ownership

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.