Refinance Your Mortgage

Michael Holigan: Cindy and Mike Moore thought their house was the perfect environment to raise their grandchild, Tara. But the interest rates on their mortgage weren't so perfect. Since the Moore's had bought their home rates have dropped considerably. So they refinanced their mortgage at the new lower rate.

Mike Moore: We saved about $300.00 a month on our house payment. So, it was a good deal for us.

MH: If the current interest rate is at least two percent below what you're paying, you many want to refinance too. Now, the process is much like purchasing your home over again with many of the same fees. You'll pay for an appraisal and a loan application. A lender may ask for a new property survey and another termite inspection. And you'll pay closing costs on your new loan. If you owe $95,000 on your house the total cost of refinancing will be approximately $2,800.00. But think of your savings. If you're paying nine and a quarter percent interest on that $95,000.00 mortgage your monthly payments are about $946.00. If you refinance at seven and a quarter percent, they drop to about $787.00. You can even include some or all of the refinancing costs in your new loan. Instead of refinancing the Moore's could have bought a bigger home for roughly the same payment. For them, refinancing was a better choice.

Cindy Moore: We'd already established neighbors and children for her to play with and we knew the community was already there and so we really just didn't want to have to start over and all of that.

MM: I guess there's comfort in familiar surroundings and that's what this is now to us. So, we feel good about staying here.

Get Pre-Approved for a Loan and know what you can afford - it's FREE

Episode 54 1997 - 98 Season

| Bathroom Makeover | Hail Damage | Glass Blocks | Refinance |

Purchase Video