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As a part of this site's online services
to help you with your loan needs we feature a refinance calculator
that can estimate what is called your "break-even date."
If you input your figures correctly, this date indicates the
amount of time you must remain in your home to break even on
your refinance closing costs (fees). After your break-even date,
you save money on your mortgage payments every month as a result
of refinancing today.
Mortgage Refinance for a larger
amount than your original loan
The time you decide to refinance
may be a good time for you to take out some additional money
for home improvements or to cover other expenses. In so doing,
you can add to the value of you home or borrow at a low rate
of interest to send your kids to college.
An important factor in this decision
is the tax status of the interest you will pay on your new loan.
This status depends on how the money is used. If your cash is
used for home improvements, for example, the interest payments
are tax deduction. Refinancing is typically a great option if
you intend to stay in your house for at least a few more years;
however, make careful considerations of the tax issues involved
with taking out a larger loan in the process. A qualified mortgage
broker can help work out these figures with you.
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