While the primary reason for refinancing is generally to reduce your monthly mortgage payment−usually by taking out a refinancing loan with a lower interest rate−it has always been important to make certain that the monthly savings will pay for the cost of taking out the refinancing loan before you sell the home. How long, in other words, will it take your monthly savings to cover the full costs of refinancing?



Another concern is whether, by replacing your existing home mortgage loan with a new one, you might be increasing your overall expense of financing the home by stretching the term of your existing loan with the new one. The old one, after all, may be fully paid off in fifteen years; if so, it's time to do the math before jumping into a new 30-year loan with a lower mortgage rate.



The secondary reason for refinancing, in any case, is that you want out of the loan currently financing your home purchase. Perhaps you have an adjustable rate mortgage whose future has become worrisomely uncertain, or perhaps you have a 5-year "hybrid" loan that is about to roll over into an adjustable mortgage whose terms are unattractive to you. In these cases, it will pay to sit for an hour or two with your trusted mortgage advisor and real estate professional and check all your options. Remember: A low initial monthly payment doesn't always mean the loan will be the most economical choice over the long haul. For help with your real estate needs call Beth at (425)450-5208.