Reasons to Refinance

Lower your monthly payment with a lower interest rate:

One of the main reason homeowners refinance is to lower their monthly payment. Lowering your interest rate by 1% on a $200,000 mortgage can save you $165 per month and more than $55,000 in interest over the life of the loan.

Get a lower rate and pay off your mortgage sooner.

Refinancing to a lower rate may allow you to shorten the loan from a 30- year to a 20-year. A $200,000 mortgage shortened 8 years will save more than $69,000.

Drop PMI or consolidate your first and second mortgage.

With better rates and accumulated equity, you could eliminate PMI and save hundreds of dollars each month. A higher-rate second mortgage could be paid off for additional savings as well.

Get out of debt faster by consolidating debt.

Pay off high interest rate credit cards and consumer loans. If you pay off $800 per month in debts with a mortgage that only goes up $200, you might be able to pay off your new mortgage in 15 years saving tens of thousands of dollars in interest. Besides, the mortgage interest could be tax deductible.

Make home improvements.

Improvements to you home can increase its value and make your lifestyle more comfortable.You can finance the improvements with a Home Equity Line of Credit or with the refinance of your existing mortgage.

Have questions about your refinance? Call Charley Farley at (603) 471-9300 or e-mail charley@charleyfarleyhomeloans.com.