With 4% mortgage rates, is a refinance worth it?
September 30th, 2011 at 1:10 pm | Type:
Author: admin | Comments Off
With historically low interest rates in the mortgage market, I wanted to illustrate how much $$ refinance an existing loan will save you.
This Table breaks down how much you will actually save by doing a refinance with today’s absurdly low interest rates. I used the average APR rates on google.com with a credit score of 700-900. It’s possible to break even and start saving $ on a refinance after only 14 months! I used a $350,000 loan for my example and gave a 30 year fixed and 5 year ARM refinance option.
|Original loan amount||
|Loan type||30 Year Fixed||Approximate date of your first payment|
|Your current home loan||Refinance option 1||Refinance option 2|
|Remaining loan amount||$346,801||$346,801||$346,801|
|Loan type||30-year fixed|
|Time to break even||1 year and 2 months||9 months|
|Interest to be paid||
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