But in the case of refinancing for the loan is not already buying property and repayment of previously taken Loan tax advantage is lost! Let's try a concrete example to assess the benefits of refinancing mortgages. Suppose a client three years ago took $ 100,000 at 15% per annum in foreign currency for 15 years. Monthly payment was about $ 1,400. Three years, the borrower enjoyed property tax deductions. Now he has decided to take a loan at a lower rate – 11% per annum in exchange for the remaining 12 years.
Monthly payment is $ 1,170 so each month will save $ 230. Total savings over 12 years – about $ 33,200. This should take into account: the remaining 12 years of loan repayment in the first bank the borrower would have returned about $ 14,100 as a result of tax benefits. That is, with allowance for losses on tax; benefits when lending to a borrower would save only about $ 19,100. Now subtract from that amount, the projected cost of refinancing itself: they constitute, according to various estimates, from $ 1,100 to $ 4,000. The expenditures may include: – bank commission (0-2% of the amount Loan) – transfer of money ($ 100) – Insurance (0,8-1,5% of the loan amount) – evaluation apartments ($ 100-150) – services mortgage broker (0,2-2%) – notary fees (up to $ 260) – the fee for registration of a pledge ($ 287-450). Total savings customer, taking into account all the costs will be from $ 15,100 to $ 18,000.