If you’ve been thinking about mortgage refinance to take advantage of today’s best refinance rates there’s no time like the present to lower your monthly payments. According to the MBA many of your neighbors are already on the mortgage refi bandwagon:
Applications to refinance existing mortgages increased a seasonally adjusted 23.1 percent over the previous week, according to figures from the Mortgage Bankers Association (MBA), which were seasonally adjusted. On an unadjusted basis, refinance applications were up nearly 50 percent over the previous week, which included the July 4 holiday.
Once you’ve decided to go forward with your mortgage refinance application, you’ll want to pay close attention to the fees you’re paying to get your new home loan. Loan origination fees and closing costs have crept up every year and are averaging 9% higher than last year. The reason your closing costs are so important is that you’ll have to break even recouping these fees from your lower payment before gaining any benefit from your lower monthly payment.
The more you pay, especially in lender junk fees, the longer it will take you to break even. You can learn more about avoiding lender junk fees and markup by checking out my free Underground Mortgage Videos.