Refinance Home Loan Rates – How Much Money Will You Save by Refinancing?
Posted on | January 27, 2010 | No Comments
Refinance home loan rates have been very low for the entire year of 2010. The 30 year fixed mortgage rate has been in tight range between 4.8% and 5% for the entire month of January. With this being the case many people are asking “how much money will I save by refinancing?” Unfortunately, the only way to know is to go through the refinance application process.
To get a 100% accurate rate quote you will need to submit a mortgage refinance application. Once you submit this application you will get an accurate rate quote and you can better determine how much money you’re going to save. There are many financial calculators available online that can help you to visualize your savings by refinancing.
It is important to note that there are closing costs involved in refinancing. Make sure to calculate the closing costs into the equation when you decide to refinance. A general rule is that you must save at least 1% on your home loan rate for it to be worth it to go through the refinance process today. If you can lock into a mortgage rate under 5% it is highly likely that you are going to save money.
There are many mortgage lenders who are currently offering interest rates well below 5%. It might be a good idea to contact several of these lenders and submit a couple mortgage refinance applications. You will then be able to better understand what a competitive interest rate is for you. When you get a competitive interest rate it might be a good idea to lock in as soon as possible as mortgage rates can often fluctuate.
Author: Mike Garner
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