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Consolidate and Refinance Your Mortgage for Huge Savings

I am sure everyone knows this, but I feel like now more than ever it is important to take a second look at the terms and interest rate of your mortgage. Interest rates are still super low--5.75-6%!! I was able to buy a house when you could put 10% down, a main mortgage for the 80% of the purchase price and a second loan for the other 10% down. Because of how these loans are set up the interest rate on the second loan was 7.125% and the main was 6.5%. After 3 years, I decided to look into consolidating and refinancing and it has saved me a bundle. I was able to consolidate the two loans at a rate of 6.125% which has saved me over $500 a month on my mortgage payment!! Which quickly recoups the cost to refinance--closing fees were about $1600. I did this last May and am already thinking about refinancing as rates continue to drop. One rule of thumb that I heard was if interest rates drop 1% lower than what you are currently paying it is worth it to refinance. A note, make sure you fully understand the terms of the loan and all the refinancing fees associated before you sign. I was able to negotiate down the closing fees. It never hurts to ask!

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submitted by TipHero reader: leigh67 11/14/2008 10:38 PM

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Comments:

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this a great site. thank you

Posted by harry on November 19, 2008 12:43 AM

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What's the best way to know if you qualify to get a debt consolidation & refinancing loan without having to call & give out too much information. How do you know if it's the right answer?

Posted by daletonabam on November 20, 2008 2:37 PM

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I am a mortgage loan officer in DC,MD,VA,SC,FL,WV and PA and I can give anybody an idea of what they can save if you are interested. Rates are at an all time low so now is the time to act. You can contact me at lauriem6@gmail.com

Posted by Laurie on January 06, 2009 1:55 AM

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