Droege, Tom
Knight Ridder Tribune Business News,
11/2002
Newsletter
For example, a mortgaged amount of $100,000 on a 30-year fixed- rate at an 8 percent interest rate would cost the homeowner about $734 a month, John Hausam Jr. said. Refinance that same loan at a 6 percent interest rate and the monthly payment, including principal and interest, would be $600. If the homeowner has an escrow account for taxes and insurance, he can expect to pay upfront costs for establishing a new account. This averages about $2,000, Mark Revard said. Because the details of refinancing vary from homeowner to homeowner, Revard recommended calling different lenders to get several good faith estimates to see what it will cost.
