Dollars and Sense: Why You Should Consider Refinancing

With interest rates at historic lows, it is smart for anyone without a very low rate to talk to their mortgage lender about refinancing. To give you an example of the money you could save, let's say a woman took out a 30-year fixed rate $750,000 loan in 2007 at 7.36 percent. Her monthly payment would have been $5,172. If she refinanced in August 2010 at 5.29 percent, her payment would have fallen to $4,033. If she refinanced again in July 2012 at 4.29 percent, her payment would be $3,483, which is just 67 percent of her original payment. Assuming she lives in the home for the entire 30-year term of her mortgage, refinancing twice will save her $349,600!!!