Nobody seems to know where this mysterious 2% rule of thumb came from.  We have never found anyone who can actually explain why one needs to save 2%.  The facts are that most of this decision goes back to what your specific objectives are for looking into refinancing.  You might be considering a home improvement.  You might be trying to consolidate some of your other debts.  You might be exploring an alternative method for financing your child's education.  There are many different reasons to consider refinancing your home loan.

To determine if it makes sense to consider refinancing, you should carefully review the available options and take note of two (2) specific savings areas – Monthly Payment and Ending Balance.  Most people only look to see if they are saving money monthly.  But even though you save monthly you could end up owing much more by increasing your term, adding to your balance, or both.  To make the best decision, we suggest comparing the ending balance of your existing loan against the ending balance of the proposed loan at a selected point in the future (5 years from now).  If you are saving some money monthly and keeping your loan term about the same, and the proposed loan has a lower ending balance than your current loan at the selected point in the future, there is true savings available.  If you are shortening the term of your loan, comparing the ending balance is the best way to see your true savings.

If you would like assistance in finding out if refinancing can bring you true savings give us a call at 1-888-562-6200 or head to our website www.churchillmortgage.com to Request a Call Back and one of our Loan Specialists will contact you at a time that is convenient for you.