Are you thinking about mortgage refinancing in 2012 to cut your expenses? Taking advantage of today’s low refinance mortgage rates can lower your monthly payment amount; however, overpaying at closing can make mortgage refinancing a losing proposition. Here are several tips from HSH.com on cutting your costs when refinancing your home:
If one of your financial goals is to save more money in 2012, you can’t go wrong by slashing your mortgage costs. After all, if you’re a homeowner, your mortgage likely represents your single-biggest expense, eating a large chunk of your paycheck every month. Fortunately, there are several ways to cut your mortgage costs and put more cash back into your bank account.
Remember that every home loan has closing costs that need to get paid and mortgage refinancing is no exception. Even those no fee refinance offers you see from lenders like Bank of America and Amerisave have a catch; you’ll be accepting higher mortgage refinance rates (and a higher payment amount) in exchange for the lender paying your closing costs. Keep in mind that if you’re not able to recoup closing costs like the loan origination fee from your lower payment amount you’ll be losing money no matter how low your mortgage rates.
You can learn more about mortgage refinancing without overpaying the lender at closing by checking out my free Underground Mortgage Videos.