One of the biggest debts people take on doesn't have to be hard to pay off, and Rate State shows how.
Baltimore, Maryland (PRWEB) April 01, 2013
No one wants to spend more than they have to. However, many people simply don’t know how to get the best savings; this is especially true for mortgage refinance. Through patience, and a bit of work, anyone can save thousands over the course of their mortgage by using 2 tips by Rate State. One of the biggest debts people take on doesn’t have to be the hardest to pay off, and Rate State shows how.
First off, Rate State suggests that people seriously consider their goals in mortgage refinance. There are many goals when considering mortgage refinance, from getting a lower monthly bill to consolidating debt. Consider the effect of these goals. For instance, a mortgage refinance from a given interest rate to one only slightly lower may not be worth it in the long run, because there are more costs to consider; specifically, closing costs. The costs of closing a mortgage refinance can run into the thousands for higher value mortgages; a good mortgage refinance will “pay for itself” over the short term- mortgage experts caution that a refinance that doesn’t pay for itself in less than 24 months isn’t a very good option.
Consolidating debt is another goal when considering mortgage refinance. Consolidating credit card debt and auto debt into the low interest from mortgages are excellent methods of lowering one’s monthly bills. However, this only makes sense when lowering monthly bills are absolutely necessary, as interest on a home is paid over the long term- in most cases, 15 years is the minimum length of a mortgage. This means that while monthly bills will be lower, the total amount paid on the debt that is consolidated into a mortgage is far higher than if the debt was paid off more quickly at a higher interest rate. Consolidating debt is a good way to reduce monthly costs, but should only be used if it is absolutely necessary.
Another way to reduce one’s monthly mortgage bill is to use Rate State’s online mortgage refinance comparison tool. Users simply type in a zip code to see the best mortgage rates from top lenders- all from the comfort of one’s home, no hassle required! Anyone can get great rates for mortgage refinance using this free online tool.