Is Refinancing Worth the Cost?

Searching for a mortgage loan? We'd be thrilled to answer your questions about your mortgage needs! Call us at 513-403-6260. Want to get started? Apply Here.

Some have said that only when your new interest is at least two points lower, should you refinance your mortgage. Maybe that was sound advice several years ago, but since refinance costs have been falling recently, it could be a good time to take a serious look. A refinance can be worth its cost several times over, considering the benefits that can come, in addition to a lower interest rate.


You could be able to bring down your interest rate (sometimes significantly) and reduce your monthly payment amount with a refinanced mortgage. You also might have the option of pulling out some of your home equity by "cashing out" some money to renovate your home, consolidate debt, or take your family on a vacation. With reduced interest rates, you might also be able to build your home equity faster by switching to a shorter term mortgage loan.

Fees and Expenses

All these benefits do cost something, though. When you refinance, you are paying for most of the same things you paid for during your original mortgage loan. These may include settlement costs, appraisal fees, lender's title insurance, underwriting expenses, and others.

Do the Math

You might consider paying points to receive a lower interest rate. When you pay (on average) three percent of the loan amount at the start, your savings for the term of the refinanced loan can be substantial. We recommend that you consult with a tax professional before acting on rumors that the points paid may be deducted on your taxes.

An additional expense that a borrower may take into account is that a lower interest rate will reduce the interest amount you'll be able to deduct on your federal income taxes. Call us at 513-403-6260 to help you do the math.

Most people find that the monthly savings quickly balance out the initial cost of refinancing. We will work with you to determine what mortgage program is perfect for you, taking into account your cash on hand, the likelihood of selling your house in the next few years, and the effect refinancing may have on your taxes. Call us at 513-403-6260 to get you started.

Curious about refinancing? Call us at 513-403-6260.



Jeff Cost | ENG Lending
Direct: 513-403-6260 | Fax: 859-356-3564 
11427 Reed Hartman Hwy
Cincinnati, OH 45241

               Become a fan on Facebook See our profile on Linked In Get informed on ActiveRain Watch our Videos on YouTube Get Daily News updates on our Blog