Honey, I Shrunk The Mortgage

Rates are low, and seldom has there been a better time to refinance your mortgage. Here's how, step by step.

even from the anticipated stay and this homeowner could save $5,400-which makes refinancing a very attractive option. (The $5,400 savings = $200 a month in savings x 27 months [the length of time in the home after the break-even point]).

1. Current Monthly Mortgage Payment $ 1,200

2. New Monthly Mortgage Payment $ 1,00

3. Monthly Savings $ 200

4. Total Refinancing Costs $ 1,800

(Don’t forget to include everything, including points, legal fees, credit check, inspections, etc.)

5. Break-even Point 9

(Divide Line 4 by Line 3. This is how many months it will take to recoup refinancing costs)

6. Future Time In Home (in months) 36

(Example: If you plan to live in your home for three more years, enter 36 months)

7. Total Savings (Loss) to Refinancing $ 5,400

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