Free MoneyMiniBook

What 1% Will Save You on Your Mortgage [Infographic]

What 1% Will Save You on Your Mortgage [Infographic]

Should you refinance your home?

Is it worth it?

That depends! But should you look into it? Yes!

It’s amazing what 1% can save you over 10, 20 or 30 years.

This is a sweet infographic that breaks down exactly what 1% could mean for a refinance…

Should You Refinance?

Read this for an in-depth answer, or keep reading to get a general idea…

It’s easy to calculate the decision. You will need to figure out…

  1. The new interest rate after you refinance
  2. The approximate closing costs of your refinance
  3. The total amount you would save with the new interest rate

Or you can use the refinancing calculator here.

It’s not always as simple as those 3 steps. That’s why I wrote the more in-depth article.

You pay much more interest in the early years of a mortgage than you do in the later years. This means that a refinance may not make much of a difference if you only have a few years left.

You also don’t want to take out a new 30 year loan if you are close to paying off your existing mortgage.

Without further ado, here is this great infographic from Zillo.com to show you the difference that 1% can make on your mortgage…

What 1% Will Save You on Your Mortgage [infographic]

Are you considering a refinance?

Have you ever refinanced a home?

Share in the comments!

Infographic: Zillo.com

10 Comments

  1. It’s crazy how much interest rates can impact your finances. We got a “rock bottom” interest rate on our mortgage and I’m really happy with some of the savings we will get versus being stuck with a higher interest rate.

    Reply
    • Hey DC,

      It is crazy! We were able to get a lower interest rate as well. It feels so much better to not be robbed quite as badly.

      Reply
  2. We have a pretty good interest rate so we won’t be looking at re-financing any time soon, but if they drop at all, we might consider it. It’s tough because who knows where interest rates are going, and if they jump, then we will be looking at the exact opposite – more money going toward the mortgage.

    Reply
    • Hey Daisy,

      Interest rates are great right now. The last few years have been so low. I am glad we were able to get a great rate.

      Reply
  3. That’s crazy isn’t it?! we have a decent interest rate and not looking to re-fi anytime soon but still so interested. I need to work on paying out debt off to increase our credit score!

    Reply
    • Hey Catherine,

      It is crazy! Getting out of debt is important! As far as your credit score, I just tried Credit Sesame to monitor my credit and it works great! Plus, it’s free! I think I like it better than Credit Karma.

      Reply
  4. Definitely always try to get lower interest rates! It may seem not much at a first glance, but then if you compare the total amount of money you finally have to pay, it’s actually quite significant.

    Reply
    • Very true! I couldn’t agree more. I just posted another article on refinancing.

      Thanks for the comment!

      Reply
  5. We refinanced both of our rental properties in 2012 and the cumulative savings was something like 100K! We may never “see” that money, but at least we don’t have to spend it.

    Reply
    • Hey Holly,

      That’s awesome! It’s amazing how much you can save if you are able to refinance at the right time. It’s still 100k, so it’s like paying off 100k in debt, congrats!

      Thanks for the comment!

      Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

FTC Disclosure of Material Connection: Some of the links above may be affiliate links, but I only recommend products or services that I truly believe in. Read More.

Pin It on Pinterest

Shares
Share This