Most people know that mortgage rates are lower than they have been in many years. What they don’t know is just how much they can save by re-financing now. A 2% difference in the interest rate over 30 years will save a homeowner $38,829.60 on a $75,000.00 mortgage, with a payment reduction of $107.86 each month. In many cases, the homeowner can keep the same payment amount and reduce the length of the mortgage from 30 to 15 or 20 years.
These savings will more than pay for the initial cost of re-financing, and often times the mortgage company will include the cost of re-financing in the new mortgage.