Throwback Radio Thursday - The Costs of Refinancing
Published Thursday, December 10, 2020
Refinancing can spare you hundreds of dollars per calendar month, but it is vital to know all the related costs and long-term effects. The scope of your loan and the state and county where you reside will play huge roles in how much you pay. Just like with any large financial undertaking, it is very much advised that you do your homework, ask questions, and look thoroughly at your short-and long-term goals before choosing to refinance.
Did you know that our very own Vince DePaul, Director of Your House Academy, started his career as a real estate broker and continuing education instructor in 1976? For ten years he produced and hosted a weekly, live call-in radio broadcast in Chicago called “Your House” where he was known as “Mr. Real Estate.” You will be able to read the content that Vince once broadcasted across the radio! The 15th topic we will be discussing today are the costs of refinancing.
Vince states, “Refinance, refinance, refinance... that's become the 3 most important things in real estate lately... everyone is refinancing. I am going to jump on that bandwagon, I am going to go with the flow, I am going to... well I get your drift. You will save money if you refinance. Well, it looks that way, but have you counted all the costs?
Refinancing your home may mean lower monthly payments... but there are some other things you need to understand. This new mortgage carries a new term. If you have been paying on your old mortgage for a while... refinancing will put you right back at 30 years again. Also, when refinancing, you are paying the normal expenses of both the buyer and the seller... and title policies, appraisals, and other closing costs are awfully expensive. Compare the cost with the savings and you might just keep what you got. That's the real estate reality... and I'm Vince DePaul.”