LYCOS RETRIEVER 
Refinancing: Payments
built 644 days ago
Refinancing may be done by any issuer of debt, such as corporations and governmental bodies, as well as holders of real estate, including home owners. When a borrower retires a debt issue, the payment is made in cash and no new security takes the place of the one being paid off. The term "refunding" is used when a borrower issues new debt to refinance an existing one.
Source:
Refinancing an existing home equity line of credit can save you money on interest charges. It will ... help you establish a payment plan to help you get out of debt sooner.
Source:
The new debt instrument issued in refinancing can be simple or complex. A corporation could replace an existing bond with traditional bonds, serial bonds (which have various maturity dates), zero-coupon bonds (which have no periodic interest payments), or corporate shares (which have no maturity date, but which may have associated dividend payments). One factor that a firm needs to consider is that the administrative and flotation costs of issuing either common or preferred shares are higher than for new debt. Furthermore, dividend payments, if any, are not tax deductible.
Source:
Just to illustrate, if all of those fees amount to $2,000 and you’d save roughly $100 in monthly payments by refinancing, refinancing would start to pay off in about 20 months. And refinancing at Tapco Credit Union is likely to cost less than that.
Source:
The easy way to figure out if refinancing makes sense is to figure out how long it will take you to pay off the closing costs with the savings you realize with lower monthly payments. If it is longer than the time you plan to stay in the house, then refinancing might be a good option. You have fewer tax breaks with a lower-rate refi, so be sure to ask your lender for a refinance break-even table that will take that into account.
Source:
Be careful with the refinancing option you choose. Certain types of refinancing options contain penalties for early payments as well as closing and transaction fees. Make sure to do your math, as in some cases these extra fees may offset any savings through the refinancing loan.
Source:
MORE ABOUT
Payments