How to Calculate How Much You Can Save By Refinancing

"A lot of people are unaware that if you continue to make the same exact payment as what you are currently making right now, that you can get rid of 12 months of payments for every eighth (.125% or 1/8%) you lower your rate," reports Fred Solomon of Solomon Financial.  He often states on his talk radio show, "Humans may lie, but the mortgage calculator does not."

It would be like if you grabbed your mortgage statement and crossed out the interest rate and lowered it to whatever rate we got you (say 6%) and left the loan balance and the payment exactly the same.  Would you pay your mortgage off faster?  Of course you would pay it off faster and what we do is need the following information below to determine exactly how much we can save you.  You can do that by using a mortgage calculator, such as the one on Solomon's website.

For example, for every eight (1/8) of a percent you lower your rate and you continue to make the same payment you were making prior to refinancing you get rid of 12 months worth of payments.  "If we drop one's rate even as little as one-half percent, that saves them four years worth of payments," adds Solomon.  If your monthly payment is $2,000 per month, that would be $24,000 a year (of savings) times four years, or $96,000 over the life of the loan just by making the same exact payment that you were paying prior to refinancing.   This is one reason Solomon Financial offers individual free loan cost analysis and good faith estimate reviews. 

"There is so much information to know when you purchase or refinance your property.  I always urge my clients to understand their loan and exact situation they are getting into.  Ask questions until you get clear, concise and complete answers," Mr. Solomon stresses.

To learn more, contact Solomon Financial, AAA Better Business Bureau Rated:

(800) 811-7709 or e-mail info@sfmdirect.com