Ever heard the old rule of thumb, you should only refinance if your new interest rate is at least two points lower? That may have been true years ago, but with refinancing dropping in cost over the last few years, it's never the wrong time to think about a new loan!

When you refinance, you could be able to lower your interest rate and monthly payment significantly. You might also be able to "cash out" some of the built-up equity in your home, which you can use to consolidate debt, improve your home, take a vacation -- whatever! With lower rates and balances, you might also be able to build up home equity faster with a shorter-term new mortgage. 

You may have a penalty if you refinance your previous mortgage too quickly. That depends on the terms of your existing mortgage. These penalties are illegal in some places, and more often than not when they're there its only for the first year or two. If you are unsure we'll help you figure it out.

You can pay points to get a more favorable interest rate. Click here to find out more about purchasing points. If you pay (on average) three percent of the loan amount up front, your savings for the life of the new mortgage can be significant.

If you lower your interest rate, naturally you will be lowering the amount of mortgage interest payments you can deduct from your federal income taxes. This is another cost that some borrowers consider. We can help you do the math!

Ultimately, for most people the amount of closing costs to refinance are made up very quickly in monthly savings or can even come out of your "cashed out" equity. We'll work with you to determine what program is best for you.