Life Kit: Money How to refinance your mortgage
14 snips
Oct 8, 2024 
Laurel Walmsley, an NPR personal finance correspondent, dives into the world of mortgage refinancing. With recent drops in mortgage rates, she discusses how many homeowners could save hundreds monthly. Listeners learn the essentials of evaluating refinancing options, including potential costs and savings. Walmsley emphasizes the importance of comparing lender quotes and using online tools. She also highlights strategies to maximize benefits, especially for low to moderate income homeowners, making refinancing a smart financial move.
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Expect Closing Costs (Or Roll Them In)
- Expect refinance closing costs of a few thousand dollars, varying by state and local fees.
- Ask lenders about rolling those costs into the loan for a no-upfront-fee option if you lack cash.
Tap Equity Carefully
- Use cash-out refinance to tap equity but avoid giving up an exceptionally low existing rate.
- Consider a home equity loan instead if you already have a very low mortgage rate like 3%.
Watch Your Loan Term Reset
- Remember refinancing resets your loan term back to year one unless you choose a shorter term.
- Ask lenders about 15-, 20-, or 25-year options to avoid extending your repayment unnecessarily.