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By refinancing, you’d save about $220 on your monthly payments and nearly $30,000 in interest payments over the life of the loan, and it would take you about three years to recoup the closing ...
This will save you money on interest, as well. ... The new loan would trim your monthly mortgage payment to $1,859 per month, giving you an additional $107 of wiggle room in your monthly budget ...
To refinance a mortgage, you’ll pay between 2 and 5 percent of the loan amount in closing costs, so if you’re refinancing to save money, you’ll need to calculate your break-even point.
The closing costs on a mortgage refinance for a single-family home averaged $2,375 in 2021, according to ClosingCorp. Refinance closing costs vary widely from state to state , however.
2. You can get a lower interest rate. If you’re paying at least 0.75% more than the going mortgage rate, which is about 6.49% as of late August 2024, you’re in a great position to consider ...
So, if the mortgage rate on a $150,000 refinance would normally be 7 percent, paying one point could reduce it to 6.75 percent, at a cost of $1,500 upfront. Shop around .
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