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Dearborn refinance
In most cases, when you refinance your Dearborn refinance loan, you are simply paying off your existing mortgage and replacing it with a new loan at a better rate. Your new loan will include some new expenses such as closing costs and discount points, but because the interest rate is lower, you will save thousands of dollars in lower interest costs over the life of the loan.
Normally a $125,000 loan at 7% interest will cost $831.63 /month. But if you refinance your Dearborn refinance loan, it is possible to get a lower interest rate. For example, the same $125,000 mortgage, with a 5% interest loan will cost only $671.03 a month, a savings of $160.60 per month or $1,927.21 per year. Or you can change the loan to interest only so that you can buy a better house. For example, for the same $831.63 , with a 5% interest only loan, you can afford a mortgage worth $154,917 instead of only $125,000 .
If you are seeking the security of a fixed payment, then a fixed rate mortgage is probably best for your Dearborn refinance loan. While most fixed rate mortgages are for 30 years, there are several other possibilities including 15 or 20 year terms, which can decrease the amount of interest that you have to pay over the life of the loan.
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