Introduction

This is one in a series of money-saving tips. For more information, please visit my home page.

Mortgages

Interest rates are very low so now may be a good time for you to get a better rate on your mortgage or to convert an adjustable-rate mortgage to a fixed rate one. But first, you must decide whether or not it will be worth it.


house Three important factors to consider are the size of your mortgage, the length of time you plan to keep it, and the difference between your existing interest rate and one you may be able to get. An ideal situation is if you have a large mortgage that you plan on keeping for a long time that has a big spread between your interest rate and a lower available rate.


But all of these factors do not have to be ideal for refinancing to make sense. If you can recover the closing costs in a year or so refinancing is probably a good idea. Note that loans that are advertised as having "no closing costs" will generally be at a higher interest rate and so you'll effectively be paying those closing costs for the life of the loan.


Here is a mortgage payment calculator. Just enter the loan amount, length of mortgage, interest rate, annual property taxes and annual insurance and then click the calculate button. The monthly payment amount will be rounded to the nearest dollar. This calculator is believed to be accurate but is not guaranteed.


Loan Amount: Years: Interest Rate:

Annual Taxes: Annual Insurance:

Monthly Payment =

Shameless Plug

If you live in the Chicago area and are in need of a mortgage broker who can get you a good rate please call my son-in-law Brook at Elite Mortgage Group. His number is (630) 871-7090.

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