When Does an Oregon Mortgage Refinance Make Sense?The first reason for an Oregon mortgage refinance is to lower the interest rate. One myth is that you should not refinance unless you can lower your interest rate by 2% or more. Hog wash. The concern you should have is how long will it take to recover your closing costs. Let’s assume you lower your Oregon interest rate by only a half a percent. Your refinancing fees cost you $4,000. Your monthly savings will be $50 a month. It will take you 6.67 years to recoup the cost. If you are planning on selling your home in the next 6 years an Oregon mortgage refinance does not make sense. If you are planning on living in the home for more than 7 years it does make sense. You should also consider no fee loans when refinancing. I personally have all of my clients on a rate watch list. Anytime an opportunity to refinance for no fees arises they will be getting a call from me. If you can refinance mortgages and it doesn’t cost you anything because the fees are paid for by the lender, jump on it! The second most common reason for an Oregon mortgage refinance is debt consolidation. Turning bad debt into good. Yes a mortgage is good debt because of the tax benefits received. You should seriously consider taking the monthly savings from your debt consolidation and adding it to your monthly mortgage payment. By doing this you could pay off your loan 10 to 15 years earlier and save hundreds of thousands of dollars in interest. Or if you don't want to pay off your loan sooner because you need the tax benefits. You should consider putting your monthly savings into some kind of investment account. If you have paid 2 to 5 years on your 30 year mortgage you should consider a 25 year mortgage. If you have paid 5 to 10 years on your 30 year mortgage you should consider a 20 year mortgage. If you have paid 10 to 15 years on your 30 year mortgage you should consider a 15 year mortgage. If you have paid 15 to 20 years on your 30 year mortgage you should consider a 10 year mortgage. The simple reason is that if you replace a 30 year mortgage that you have been paying on for several years with another one it will cost you tens of thousand of dollars more. Simply due to the fact that you are extending what you need to pay by several more years. Want proof? Multiply your new monthly mortgage payment by the number of years you’ve already paid. That will be how much it will cost you by not choosing a shorter term mortgage. Vice versa. Subtract the shorter term from your current mortgage term less the years you have already paid. Multiply the years you have not paid by your new payment. That is the amount you will save by choosing the shorter term. Not only will you be saving a ton of money on your refinance mortgages by choosing a shorter term. You will also receive better interest rates on the shorter term mortgages as well. The final reason people choose to Oregon refinance mortgages is for investment purposes. Starting a business, paying for college, buying rental property etc. Of course in this situation you need to do some fact finding. You need to make the decision if getting the shorter term is a good idea or not. Will the business make any money for the first few years? If not, a lower monthly payment associated with a longer repayment term might be a good idea. If you are buying rental property will there be any cash flow? Again, if not, a lower monthly payment associated with a longer repayment term might be a good idea. An Oregon mortgage refinance can have a major impact on your financial future. Both positively and negatively. But following the above guidelines will help you choose a mortgage that is just right for you and has a positive affect. Give me a call today and let's see how I can help you achieve your goals. Oregon residents apply here for an Oregon refinance mortgage 
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