Of 50 million homeowners it is estimated that 7 million of them could save money each month if they refinanced their existing mortgage. One obvious saving is refinancing at a lower mortgage rate. Another saving is that if you bought a home before 2011 and your are paying for mortgage insurance, you might want to see if refinancing will help you eliminate the mortgage insurance. Even if you didn’t get a lower loan rate, the savings you would see by eliminating the mortgage insurance could save you hundreds of dollars each month.
If you purchased a home after 2011 it may have appreciated enough that you can justify refinancing to eliminate the mortgage insurance. Once your loan-to-value reaches 80 percent or more, mortgage insurance is not required. There are also some programs for 90 percent mortgages that don’t require mortgage insurance. This option is worth investigating with a trusted mortgage professional.