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Mortgage Refinancing Interest Rates

Posted on February 12 By MLP Lending Guide

Once you make the decision to refinance your current mortgage you should shop around for the lowest interest rate possible. Your interest rate can make a huge difference in your expendable income over time. For instance if you take a $100,000 mortgage loan for 30 years at 10% your payment would be $877.57 per month not including any escrow money required by your lender for property taxes, home owners insurance or mortgage insurance. If you take the same $100,000 loan for 30 years at 6% your payments would be $599.55 per month. Over 30 years the lower interest rate would wind up saving you $100,087.20 in interest alone. If you put that extra money away every month into a 4% savings you would have a healthy retirement account of around $187, 112.69 by the end of the 30 year period. This is in a 4% savings without any risks. If you put the money into more aggressive investments you could yield much larger returns.

This is why finding a low interest rate is so important for anyone refinancing a home to consider. A small percentage difference in interest rates can make a huge difference over time. The good news is that since you are refinancing your mortgage loan you are probably in a better situation to get a lower interest rate. Because of all the time you spent paying your current mortgage loan you credit score goes up and with better credit and a good payment history you should be able to refinance into a mortgage loan that will save you money.

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1 Responses to "Mortgage Refinancing Interest Rates"
  1. Mortgage Man 19, Jun, 2009

    Very nice. Thanks for this.

      Reply»  

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