A lot of homeowners are under the false impression that they will not see any kind of savings if they refinance their home. Common thoughts about mortgage refinancing are,I probably will not qualify anyway since my credit is not great, or my home value has dropped, or it seems to hard to do.. However, the truth is refinancing a home mortgage the right way, especially now, will save you hundreds per month.

Refinancing a mortgage is not that hard to do. It does not take a significant amount of time, and the savings can be enormous. Secondly, saving even 1% on a home loans interest rates can add up to a big savings every month, and even bigger over the length of the loan.

Right now, the Federal Reserve is buying treasury bonds from the government basically printing cash in the amount of over $300 billion dollars in order to lower interest rates for every homeowner and potential home buyer. Experts believe that the Federal reserve would like to see an interest rate of around 4.5% available for everyone. This would be the lowest recorded interest rates in history, and the savings for homeowners would be tremendous.

A vast majority of current homeowners have a interest rate much higher than 4.5%. Generally current homeowners have an interest rate of anywhere between 5.5% - 10% depending on their personal financial situations, and when they got their loan. The worst part though is that most of these homeowners do not realize how much they could save every single month by refinancing.

Here is an example of how much you could save by refinancing. Over the course of a 30 year loan for $300,000 at 8% you would pay around $516,000 in interest, with that same loan refinanced into a 4% interest rate you would pay around $245,000 over the same length of time. That is an extremely huge savings of $271,000 in interest payments over the course of the loan.

Refinancing your home mortgage the right will save you money. Make sure you do some basic research on potential mortgage lenders, and pick the one that is right for you. Now is a great time to take advantage of government programs and near record low interest rates and refinance.

-M Petrone

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