When you take out a mortgage, you can lower the interest rate on the loan by purchasing points. One point is equal to 1 percent of the loan value. So, for example, on a $200,000 mortgage, 1 point would cost you $2,000, 2 points $4,000. Generally speaking, each point you pay upfront will decrease your interest rate over the life of the loan by about one-quarter of one percent. Read More
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There are several ways to tap your home’s equity. One is to take out a home equity line of credit (HELOC). A credit line will have a variable interest rate, but you pay interest only on the amount you use. Ideally, you should draw from your credit line and then pay some or all of the balance before drawing against the credit line again.
A home equity line is often less expensive than higher-rate borrowing options such as credit cards – and the interest may be tax deductible.* Read More
With the potential for interest rates to rise in the coming months, is now the time to consider refinancing your current home loan? There are many reasons why you may want to refinance your loan, but the best way to decide if you should refinance is to compare the numbers. What will your monthly payments be with the new rate? How much will you save each month over what you are paying now? How long will it take you to recoup the costs of refinancing? Read More