As a general rule, you can benefit from refinancing if your refinancing rate is 1-2% lower than your current rate.

But note that many lenders are offering the low- and no-cost refinancing programs — so it might be worth your time to refinance to obtain a smaller reduction in interest rates.

compare the numbers

Other Reasons for Refinancing

— shorten your loan term
— move from an Adjustable Rate Mortgage (ARM) to Fixed
— consolidate and payoff debts: see debt reduction plan
— pay for home improvements
— settle divorce or other claims

To see if refinancing can save you money, follow these simple steps:

— check your rates
— analyze the numbers
— search for the right refinancing program

Step 1: Check Your Rates

You may be able to save $100s on your mortgage payment each month if your home mortgage rate is higher than current rates.

For example: for every $10,000 that you owe on your mortgage loan balance, you can save approximately $6.30 each month for every 1% drop in your mortgage rate.

For every $100,000 that you owe on your mortgage loan, that is a savings of approximately $63 each month.

view current rates

Step2: Analyze Your Costs

There is a cost to refinance, which can eat up your savings if the refinancing rate is not much lower than your current rate.

Use these online calculator to run your numbers:
http://www.hsh.com

Download this worksheet to analyze the numbers:
http://www.state.ma.us

Step3: Find Your Refinancing Program

Link to our network of mortgage refinancing programs:

Refinance Home Select State: Alabama Alaska Arizona Arkansas California Colorado Connecticut DC Washington Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

and connect to information about mortgage refinancing, rates and calculators.

If you need to review the mortgage lending process and products, brief our home mortgage guide:

SayLending:  Home Refi Guide

Paying rent is money down the drain. Start a savings plan to own your home.

Link to our savings module to review setting up a savings plan for your home purchase. You will need to save up the following funds:

1. down payment:
   most lending guidelines require at least 20% down of the home purchase price. Anything less that 20% will require Private Mortgage Insurance (PMI) that can add to your monthly cost.
   
   We invite you to review our mortgage lending module for information regarding PMI and other loan product will less than 20% down
   
   SayLending:  Home Mortgage Guide
   
   
2. closing costs:
   closing costs on a home purchase can run anywhere from 3-6% of the home purchase price, depending on your region. Closing costs include origination fees, appraisals, title fees and more.
   
   SayHomeBuy:  view discussion on closing costs
   
   
3. out-of-pocket costs:
   you need to plan for out-of-pocket costs that are usually paid up-front when searching for a home. These costs include credit pulls, home inspections, travel and stay if you are moving to a new city and state, etc.

Want to buy your first home? Let's get started:

1. Review our Home Buying Center for a complete 7-step guide for buying your new home:
   
   SayHomeBuy:  click for our Home Buying Guide
   
   Look to buy a FSBO:
   SayHomeBuy:  link to our FSBO network
   
   Look to buy a foreclosure:
   SayHomeBuy:  link to our home foreclosure network
   
   Doing price checks on homes (research what's sold):
   SayHomeBuy:  shop home market values
   
   
   
2. Understand the mortgage lending process:
   SayLending:  Home Mortgage Guide
   
   
   
3. Review our 10-Tips on Home Affordability:
   SayLending:  Home Mortgage Center

Lowering your rent

If your rental costs are choking your monthly budget, you might consider two things:

1. Find a less expensive place to live
2. Consider sharing your rent with someone else

Find a less expensive place to live. Use these online guides to start your search:

www.apartments.com
www.apartmentguide.com

SayRelocate:  check the classifieds for apartment listings

You might consider sharing the rent with someone else:

Find a roommate:
www.roommatelocator.com
www.roommates.com

Roommate resources and advice:
www.roommates.com/resources.rs


SayRelocate:  check the classifieds for rent sharing

Attention Renters: it is critical to establish a good credit rating prior to buying your home. Make sure you get your on-time rental payment noted by the credit agencies. See our credit management center for information:

SayGoodCredit:  credit management center

These are tough expenses to reduce. But with some work, you can make some cuts.

Taxes are assessed on the fair market value of your home. Fair market value is the amount an informed buyer is willing to pay, and an informed seller is willing to take for property in an open market without undue influences.

The three approaches used to assess market value are the sales, the cost, and the income approach. Your county appraiser may consider all three when determining value.

Sales Approach:
The county appraiser reviews similar properties that have sold, compares them to your property and may make adjustments for differing characteristics. This approach is typically applied to residential property in an area with a substantial number of sales.

Cost Approach:
In the cost approach, the county determines replacement cost of the property less depreciation. This approach is used when property is new or unique, or with few sales in the area.

Income Approach
In the income approach, the value of the property is estimated using the income the property is expected to produce in the future. It is used to value commercial property and apartments when sufficient market rent information is available.

Review your county/city property tax policy and calculation link to your local jurisdiction: click here

Making Property Assessment Appeals

If you feel your property taxes are too high or assessed too frequently, you may consider challenging your property tax assessment:

• understanding property taxes
• cutting your property assessments
• online guides for property tax appeal
• review your jurisdiction tax appeal information

You might consider reviewing your existing home insurance policy. A comparative pricing analysis may find some savings.

Note however, that your home is probably your most value possession. Make sure you carry adequate insurance. When comparing policies, make sure you make an "apples-to-apples" comparison.

You can also make an online comparison with multiple providers to compare overall best cost:

link directly to our nBuy center for an insurance quote among multiple providers

How would you like to pay off your mortgage in about 1/3rd of the time saving you thousands in interest?

By paying off your mortgage early, you can save a lot of money by not having to pay all that interest to the banks

click here for quick slide presentation on how you can payoff your mortgage FAST

Includes a FREE, no obligation profile analysis of your current mortgage payoff position

• Early payoff means big savings for you.
  
  
• Plus you get the added security that your home is free and clear from any bank action
  
  
• You can pay down your mortgage quickly without having to refinance or change your cash position

Up to 40% of heating and cooling costs are wasted. Three places to close that gap:

First: connect to this government publication on home energy savings and tips:

Link to: heating and cooling
Link to: insulation
Link to: windows and doors
Link to: home office and electronics

Another resource center: Home Energy Savings Guide
Renters guide: www.espenergy.com

Second: weatherize your home to reduce energy cost:

SayImprove:  insulation / weatherizing your home
SayImprove:  view new windows and doors

Third: check out the new heating and air conditioning systems for a more efficient home:

SayImprove:  heating and cooling
SayImprove:  water heating systems

The most efficient way to reduce electric costs is to install energy efficient lighting elements and turn off unnecessary lighting.

According to the U.S. Government, if you replace 25% of your lights in high-use areas with fluorescent lighting, you can save about 50% of your lighting energy bill:

Link to: lighting
Link to: appliances

Renters guide: www.espenergy.com

SayImprove:  view new lighting elements

Your area may offer utility deregulation for shopping current electricity.

There is also great information on energy savings.
Link to: www.energyguide.com

There are four ways to reduce your water heating costs:

1. use less hot water,
2. turn down the thermostat on your water heater,
3. insulate your water heater,
4. buy a new, more efficient water heater.
   
   Link to: more water saving tips available
   
   Renters guide: www.espenergy.com
   
   

• New water heaters (including tankless and solar) can help reduce costs and water usage.
  
  SayImprove:  water heating systems

Telephone Service: 3 ways to cut costs

1. Shop for local and long distance services:
   
   Connect to saveonphone.com for price comparison: click here
   Check local utility services in your area: click here
   
   
2. Use calling cards for long distance and international calls:
   
   Link to: www.nobelcom.com
   Link to: www.callingcards.com
   
   
3. Use the Internet for your phone service:
   
   Link to: web.net2phone.com
   Link to: www.dialpad.com
   Link to: www.vonage.com

Internet Connections

High speed Internet access costs are as cheap as dial-up access and a second phone line

High-Speed Internet: compare plans

New technology allows for faster speeds with dial-up service:

ISP Dial-Up: compare plans

Find the right home improvement project and do-it-yourself tips at our SayImprove Center:

attic
upstairs
main floor
basement
garage
exterior home

landscaping / gardening