How homeowners can save – Medford News, Weather, Sports, Breaking News

Document text

How homeowners can save By cutting interest rate Jan 15, 2000 12:00 AM A A Refinancing a mortgage can save homeowners big bucks. Here are two scenarios using the example of a 30-year, fixed-rate, $100,000 loan with an interest rate of 9.15 percent and a monthly principal and interest payment of $815.44: Refinance loan amount -- $97,816 Current 30-year fixed rate -- 7 percent New monthly principal and interest -- $650.78 Monthly savings -- $164.86 30-year savings -- $19,694 Closing costs on new loan -- $2,445 Break-even point -- 15 months cutting loan duration Refinance loan amount -- $97,816 Current 15-year fixed rate -- 6.625 percent New monthly principal and interest -- $858.82 Additional cost per month -- $43.38 15-year savings -- $21,396 Closing costs on new loan -- $2,445 Break-even point -- 13 months