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! Refinancing has a number of benefits that often make it worth the up-front expenditure many times over.

Here's a simple rule:  Ask your Charter Lending Corp. consultant: "What would my rate be today to refinance at no cost to me what so ever?  You may be surprised at the answer.  If you know you can lower your payment without it costing anything, then you can start looking at other options with more confidence.   Or... as many people tend to say. "just do it.  I can't lose anything.   If rates go down further this year or next, I can just do it again."  When you refinance, you might be able to lower your interest rate and monthly payment -- sometimes 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.

All these benefits do not need to cost anything.  When you refinance, you're not paying for most of the same things you paid for when you obtained your original mortgage. These might include settlement costs and other fees, an appraisal, lender's title insurance, underwriting fees, and so on.  Charter Lending Corp. is paying them for you.  

You might have to pay 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 apply only for the first year or two. We'll help you figure it out.

You might pay points to get a more favorable interest rate.  Consult your tax professional before deducting points you pay on your new mortgage from your federal income taxes.

Speaking of taxes, 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 it is a simple phone call.  Compare the rate on a "no cost" loan to the rate you have. If it is less, you save money.