{"id":19933,"date":"2019-05-02T14:32:56","date_gmt":"2019-05-02T14:32:56","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=19933"},"modified":"2019-05-02T14:32:56","modified_gmt":"2019-05-02T14:32:56","slug":"5-things-to-know-before-you-refinance","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/5-things-to-know-before-you-refinance\/","title":{"rendered":"5 Things to Know Before you Refinance"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p class=\"p1\"><span class=\"s1\">Some home buyers take the refinancing route to lower their monthly mortgage payments. Though that may work, it is not always the best move to make. If you are considering to <a href=\"https:\/\/huntrealestatecapital.com\/blog\/why-do-property-owners-refinance\/\"><span class=\"s2\">refinance your property<\/span><\/a>, you must first be aware of some key factors. Let\u2019s take a look at some of them.<\/span><\/p>\n<h2 class=\"p1\"><span class=\"s1\">It will cost you money<\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">You need to realize the process of refinancing a property is not free. There are the closing costs that you need to settle. This will cost you somewhere from 2 to 5 percent the amount of your home loan. A $150,000 loan will likely cost you about $3,000 to $7,500.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">There is, however, an option, in case you are tight on finances. You may opt to have your lender to shoulder the closing expenses via a <a href=\"https:\/\/www.zillow.com\/mortgage-learning\/no-closing-cost-refinance\/\"><span class=\"s2\">no-closing-cost refinance<\/span><\/a>. Keep in mind that if you decide to go for this option, you will end up paying a higher interest. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The key is to calculate your financial capabilities for the duration of your mortgage loan. You can opt to use a refinancing calculator to get a clearer view of the payments. In the event that you hit breakeven by the end of year number four, but you only plan to live in the house for only two years, then taking the refinancing route is not a very wise decision. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Of course, you can intensify your level of savings to repay the costs. This has no hard rule since people have their own circumstances to deal with. Generally speaking, the cost of refinancing can be recouped in two years, more or less. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">For example, your refinancing expenses are at $2,800, and it yields $179 in savings, your personal savings can repay the expenses in about 15 months\u2019 time. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Before deciding to commit on a refinancing plan, you need to conduct due diligence. You need to do your homework by comparing the different refinance rates coming from different mortgage lenders. <\/span><\/p>\n<h2 class=\"p1\"><span class=\"s1\">It can take out your PMI<\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">Interestingly, a refinancing can cancel your <a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-is-private-mortgage-insurance-en-122\/\"><span class=\"s2\">private mortgage insurance<\/span><\/a> (PMI) altogether. To enjoy this feature, you must have a loan balance of 80 percent or less of the appraised value of your property. In the event that your first mortgage loan is 80 percent or less that property\u2019s value during appraisal, your refinancing loan will no longer require you to pay for the PMI.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">This is because the new loan will now replace the old loan that came with the PMI. Basically, all of your obligations in relation to the old PMI will be wiped out. If you are in the market for <a href=\"https:\/\/robinkencelgroup.com\/\"><span class=\"s3\">houses for sale in Greenwich ct<\/span><\/a> or other <a href=\"https:\/\/robinkencelgroup.com\/properties\/\"><span class=\"s3\">Greenwich real estate<\/span><\/a>, contact a trusted real estate agent today. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Some home buyers take the refinancing route to lower their monthly mortgage payments. Though that may work, it is not always the best move to make. If you are considering to refinance your property, you must first be aware of<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/5-things-to-know-before-you-refinance\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":19765,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[15],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2019\/04\/Capture-2.png","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/5_things_to_know_before_you_refinance","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/19933"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=19933"}],"version-history":[{"count":1,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/19933\/revisions"}],"predecessor-version":[{"id":19934,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/19933\/revisions\/19934"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/19765"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=19933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=19933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=19933"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=19933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}