Information on mortgage refinancing, mortgage payment calculators, reverse mortgages, refinance homes and mortgages

When does refinancing your home mortgage make good financial sense? Mortgage refinancing  should be considered anytime the current interest rate on your mortgage is at least 1% higher than the current mortgage rates. But be aware that there are also several costs associated with refinancing. A general rule of thumb provided by the industry has been that you will come out ahead even after refinancing costs, if your current mortgage rate is 2% or more higher than current rates. However, some lenders are now saying that a difference of as little as 1% in mortgage rates may make refinancing worth your while.

Other considerations for refinancing your mortgage also include how long you plan to stay in your home, as it may take up to 3 years to realize the savings of a lower rate after paying the costs of mortgage refinancing. But given your specific loan amount and rate, you may find savings by refinancing a loan that is only 1.5 percentage points highter than the current morgage rate. You may even find you could recoup the refinancing costs in a shorter time. Always be sure that you are lowering your overall interest costs when you refinance. It's important to do your own mortgage calculations to see what makes sense for you.

Mortage refinancing means setting up a new mortgage to replace your existing mortgage loan.   Essentially you are applying for a new mortgage with the new terms that you want, and then using the funds from that new mortgage to pay off your existing one.

However, the company that carries your current mortgage will charge fees for early payout of your mortgage, and there are also a number of fees associated with setting up another new mortgage on your home.  Therefore, you need to evaluate whether the savings or other benefits of refinancing you home, will outweigh the associated costs.

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