Thinking about refinancing your Andover home?

Refinancing can lower your monthly mortgage payments

With home mortgage interest rates at historic low rates it may be a perfect time to refinance your current Andover or North Andover home. Although refinancing can sometimes be a complicated process it may be worth the effort because it may save you tens of thousands of dollars over the life of your loan. 

Generally refinancing makes sense if you can reduce your current mortgage by 2 points or more.  Analyze whether the cost of refinancing makes sense by figuring out how long it will take you to cover the refinancing costs and whether you plan on being in your home that period of time.  If your new mortgage will save you $200 a month in mortgage payments and it will cost you $2,000 to obtain the loan then it will take 10 months for you to “break even” and begin to save money. 

Shorter loans have lower interest rates but higher monthly payments.  Mortgages are usually 15 years or 30 years in length.  Make sure that your new loan doesn’t have penalties associated with an early pay-off if your plan is to move or pay off your home loan early.

 Refinancing can be a wise financial decision and with mortgage rates at a 30 year low refinancing is at an all-time high.  Weigh all of the details and make sure that your new mortgage is exactly what you are looking for before signing on the dotted line.

This mortgage calculator can help you decide or Click here for more information about refinancing from Yahoo Real Estate.