The Morning Call - - LOCAL NEWS -

The main costs associated with re­fi­nanc­ing are one’s ti­tle in­sur­ance, ap­praisal fee and the credit re­port (since you need to qual­ify all over again for the new in­ter­est rate), which all might add up to about 1.5% of the loan amount. Whether you should re­fi­nance de­pends on whether you can save enough on the in­ter­est rate to make up for that cost, or break even, in one or two years, lenders ad­vise. If you can an­swer yes to these ques­tions, it might be time to talk to your lender:

■ Is your cur­rent rate at least 0.75% higher than the cur­rent in­ter­est rate of 3.62%? (You can check up-to-date rates through the Fed­eral Re­serve Bank of St. Louis web­site.)

■ Are you stay­ing in this home for at least two more years?

■ Have you been dream­ing of a home im­prove­ment project that would cost tens of thou­sands, or do you have large col­lege pay­ments com­ing down the line?

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