A new tool to help you take advantage of current mortgage rates
Posted on November 1st, 2010
Have you refinanced your mortgage yet?
Mortgage rates have been so consistently low that they’ve almost become part of the scenery, and that’s the danger. If people start thinking of current mortgage rates as the norm, it increases the risk that they will fail to take advantage of them in time.
Of course, there are many other factors besides current mortgage rates that go into the decision of whether or not to buy a house, but when it comes to refinancing, the decision should be primarily mathematical — a calculation of whether or not refinancing could save you money.
Comparing current mortgage rates under different scenarios
Unfortunately, it’s precisely the math involved with comparing mortgage rates that can scare people off, especially since it’s not always an apples-to-apples comparison. After all, there are three major ways of structuring a mortgage:
- You could pay closing costs in cash, so that they don’t add to the amount of your mortgage. This is known as traditional refinancing.
- You could add the closing costs to the amount that you are borrowing. This is known as low-cash-out refinancing.
- You could avoid closing costs, in exchange for agreeing to pay a higher interest rate on the loan. This is known as no-cost refinancing.
Each method has it’s own advantages and disadvantages, and the cost-effectiveness of each depends on the actual numbers involved.
A new refinancing calculator from HSH.com helps you weigh all three refinancing options. While refinancing calculators are plentiful on the Internet, what’s special about this HSH.com calculator is that it allows you to list the outcomes of all three types of refinancing options side by side. Appropriately enough, HSH.com is calling this the “Tri-Refi” Refinance Calculator.
If you are considering refinancing, try the Tri-Refi. If it makes the comparison of different refinancing options easier, it might help you make a decision in time to take advantage of current mortgage rates. Those low rates may be starting to seem normal, but they really, really aren’t.
Similar Posts:
- Should You Pay Points on a Mortgage?
- Choosing The Right Time To Refinance
- If You Want to Budget, Start With the Big Stuff
- Mortgage Refinancing: 3rd Quarter Refinancing Saves Borrowers $3 Billion
- Debt pay off calculator – How does it help you in handling debts
Tags: Current Mortgage, Mortgage Rates, Rates
Filed under Bank Rates |