Refinancing Your Mortgage

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You can benefit from the lower mortgage rates even if you are already under a mortgage contract. You can do this by refinancing your mortgage.

A lot of people have taken advantage of this and if your interested, now is a great time to do it before the rates go back up.

By refinancing, a homeowner could save thousands of dollars in mortgage payments each year. For example, a borrower with a $200,000 30-year fixed mortgage with a 5.5% rate will pay $1,136 per month in interest and principal. By refinancing into a $200,000 mortgage with a 4.2% rate, the borrower's monthly payment drops to $978.

On the downside if you try to refinance too early you can lose out by having to pay penalities and appraisals which can eat up the money you would have saved.

Talk to your lender and see if it's the right thing for you.