Refinancing your loan with Micott Mortgage lenders can save you a lot of money.

First, a quick word about up-front fees called points.  One point is equal to 1% of the loan amount.  In other words, on a $200,000 loan, one point would be $2,000.  Another common name for a 1 point fee is a 1% origination fee. The purpose of points is to buy down the interest rate on a loan.  The traditional relationship between points and interest rate is that one point will buy a 1/4% lower interest rate on the loan. This traditional relationship can vary slightly from lender to lender.  A point is an upfront fee, and the interest rate is the rate charged annually on the loan. A borrower can also pay a discount point(s) to buy a rate down further.  However, lenders price so that it can take more that 10 years to pay for the extra discount points with lower payments.  Usually a 1% fee can be saved in the form of lower monthly payment in about 4 or 5 years.

When you're making your decision to refinance, there are several things to keep in mind:

First, even a small rate cut can pay off quickly

Second, if you are planning to stay in your home for at least four to five or more years, it may make sense to pay "points" and closing costs to get the lowest available rate. 

And third, you can avoid a cash layout and still get a low rate by adding the fees and closing costs to your new mortgage. This does not mean shouldering a lot of extra debt. If you've had your current mortgage for at least three years, you've probably reduced your balance by several thousand dollars. So you may be able to add your closing costs onto your new loan, lock in at a lower rate and still end up with a mortgage amount that's less than your original one. More importantly, you may get a much lower monthly payment.  You can also avoid the loss of equity by doing a no-cost refinance.  In this scenario, the lender charges a higher rate and pays the closing costs.

In order for refinancing to make sense the traditional 'rule of thumb' is that the interest rate of your new mortgage must be about 1 to 2 percentage points below the rate of your current mortgage.

However, with our new no-cost / low cost refinancing programs, it can be worth your while to refinance to obtain a smaller reduction in interest rates.  Most borrowers can see savings when the interest rate is as little as 1/2% below their existing rate.  One of our loan officers can easily work the numbers for you to see what makes the most sense.  Just call now the toll free number on the home page or Apply Now at the top of this page.