Refinancing a mortgage for a Greater Salt Lake City/Park City home can sometimes end up costing more than what it should if you haven't properly researched a few things. There are many costs involved with refinancing, and by doing a bit of homework first you can cut these costs considerably. Here are a few things to keep in mind when you want to refinance your mortgage in Greater Salt Lake City/Park City.

#1 - Consider getting a short-term mortgage

Usually the costs involved are much less when you opt for a short-term mortgage for a Greater Salt Lake City/Park City home versus a long-term one. A short-term mortgage is generally fifteen years in length, while a long-term one is about thirty. A short-term loan is often less costly because the lender is carrying less risk on the home in Greater Salt Lake City/Park City. Even though you will be paying a much higher monthly rate, your initial costs will be less and you will be paying less interest overall.

#2 - Private mortgage insurance

PMI, (private mortgage insurance), is usually required if you are borrowing more than 80% of the value of your Greater Salt Lake City/Park City home. It is very costly and is only useful for the lender. For the homeowner it does no good at all, so avoiding this costly expense will reduce the overall cost of refinancing. You can ask your lender if he requires PMI if you are borrowing over 80% of the Greater Salt Lake City/Park City house value. If it is required, you may want to try to find another lender that will not demand it.

#3 - Get more than one quote

Every Greater Salt Lake City/Park City lending institution has its own rules and guidelines it follows when refinancing a mortgage. There are many different financial institutions in Greater Salt Lake City/Park City that you can approach, and once you get your quote be sure to read through all the fine print and be certain you understand it fully. One difference between two quotes can add up to thousands of dollars in the long run.

Many people in are choosing to refinance their Greater Salt Lake City/Park City house mortgage during this economic crisis. By following these few simple tips you can end up saving a lot of money on costs.

If you need more free information about selling, buying or investing in Greater Salt Lake City/Park City real estate feel free to contact Kathy Opolski. For complete information about the Greater Salt Lake City/Park City real estate market, including the most recent homes for sale, current property values and more, please visit the most complete online website dedicated to meeting all of your Greater Salt Lake City/Park City real estate needs at www.KathyOHomes.com. Do not hesitate to contact me anytime with any of your real estate or mortgage related questions and I will be happy to answer your them for you. Call me on my cell at 801-518-4599 or email me at kathyo@kathyohomes.com.

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