Home mortgage refinancing is just replacing the mortgage you currently have with a new one. Ideally with mortgage rates at record lows right now you will get better rates terms and conditions, saving you hundreds per month.

It is not complicated to figure out the math and know roughly how much you stand to save through a home mortgage refinance. You will need to know how much the closing costs and any associated fees are and your new monthly mortgage payment to get an estimate. Assume that you have a $1200 per month mortgage payment and can reduce that by just $150 per month that is $1800 per year of the loan in savings.

A mortgage refinance will cost around $4000. It is a lot of money to spend but ideally will be recovered through the savings that you will get in the refinancing. Find out what the break even point is in your mortgage estimate, with the costs included, and see how many months it will take.

When the break in period is over it is all on you how long you desire to stay in the home. If you stay in your home after te break even point, you will save that much per month times how many months the mortgage term is. That is thousands and thousands of dollars in savings, to own the same home.

Home mortgage refinancing is not always the best option for everyone, it is not always easy or cheap, but could be worth looking into. Mortgage rates have not been as low as they are right now. A refinance into a mortgage at just 1% lower interest rate can save you tons of money and make a refinance a financially smart thing to do.


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