According to money.CNN.com, with mortgage rates near 35-year lows, you may be able to cut your...

 

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According to money.CNN.com, with mortgage rates near 35-year lows, you may be able to cut your payments sharply by refinancing your loan. To qualify for the best rates, you need a credit score of 740 or higher and usually at least 20% equity. Even if you have to settle for a higher rate, a new loan may save you money. The main consideration is whether you will live in your home long enough to offiet the refinance closing costs. Your current mortgage payment is $1,658.50 per month, with a balance of $218,800. Suppose you have a chance to refinance at a certain bank with a 30-year, 5.5% mortgage. The closing costs of the loan are application fee, $90; credit report, $165; title insurance, 0.4% of the amount financed; title search, $360, and attorney's fees, $560, You plan to live in your home for at least four more years. Use the Mortgage Refinancing Worksheet to see if it makes sense to refinance your mortgage MORTGAGE REFINANCING WORKSHEET STEP 1. STEP 2. Current monthly mortgage payment... New monthly mortgage payment if you refinance..... New rate Table 14-1 factor STEP 3. Monthly saving........... Step 1. Current mortgage balance x # of 1,000s to borrow Step 2. STEP 4. Total refinance closing costs (appraisal, title search, etc.).......... STEP 5. Total months needed to recoup your costs..... Step 4 result Step 3 result According to money.CNN.com, with mortgage rates near 35-year lows, you may be able to cut your payments sharply by refinancing your loan. To qualify for the best rates, you need a credit score of 740 or higher and usually at least 20% equity. Even if you have to settle for a higher rate, a new loan may save you money. The main consideration is whether you will live in your home long enough to offiet the refinance closing costs. Your current mortgage payment is $1,658.50 per month, with a balance of $218,800. Suppose you have a chance to refinance at a certain bank with a 30-year, 5.5% mortgage. The closing costs of the loan are application fee, $90; credit report, $165; title insurance, 0.4% of the amount financed; title search, $360, and attorney's fees, $560, You plan to live in your home for at least four more years. Use the Mortgage Refinancing Worksheet to see if it makes sense to refinance your mortgage MORTGAGE REFINANCING WORKSHEET STEP 1. STEP 2. Current monthly mortgage payment... New monthly mortgage payment if you refinance..... New rate Table 14-1 factor STEP 3. Monthly saving........... Step 1. Current mortgage balance x # of 1,000s to borrow Step 2. STEP 4. Total refinance closing costs (appraisal, title search, etc.).......... STEP 5. Total months needed to recoup your costs..... Step 4 result Step 3 result

Answer rating: 100% (QA)

Given Here Balance of the loan amount is 218800 Old Monthly Payment is 165850 New Interest Rate is 5... View the full answer