You need to first weigh your current interest rate on your existing mortgage with what the current interest rate is that’s being offered. If you’re early in the term of your loan and it’s possible to refinance into a better interest rate, this could very well be a better option for you right off the bat.
– This is a new mortgage that will replace your existing one.
– Will “reset” the loan term (i.e. 30 years)
– Lump-sum upon closing
– New mortgage payment will depend largely on how much equity you have and what your new interest rate is vs. what it was.
– Current interest rate near 4.1%
– Fixed Interest Rate
– Cost is approximately $4,000 in closing costs.
– Existing mortgage is unaffected.
– Variable interest rate.
– Current interest rate is near 5%.
– Can draw from it as needed. When paid down, can draw off it again.
– Monthly payment will depend on current balance
– Little to no cost.
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