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9. 10.42/1 Points] DETAILS PREVIOUS ANSWERS BRECMBC9 14.11.022. MY NOTES According to money.CNN.com, with mortgage rates near 35-year lows, you may be able to cut your payments sharply by refinancing your loan. To qualify for the best rates, you need a credit score usually at least 20% equity. Even if you have to settle for a higher rate, a new loan may save you money. The main consideration is whether you will live in your home long enough to offset the refinance closing costs. Your current mortgage payment is $1,678.50 per month, with a balance Of $219,800. Suppose you have a chance to refinance at a certain bank with a 30-year, 50/0 mortgage. The Closing costs Of fee, $80; credit report, $155; title insurance. 0.4% of the amount financed; title search, $360; and attorney's fees, $560. You plan to live in your home for at least four more years. Use the Mortgage Refinancing Worksheet to see if it makes sense to refinance your mortgage. MO RTG AG E REFINANCING WORKSHEET STEP 1. Current monthly mortgage payment.... .. .. STEP 2. New monthly mortgage payment if you refinance....... New rate Table 14-1 factor STEP 3. Monthly Step 1. Current mortgage balance X # of 1,000s to borrow Step 2. STEP 4. Total refinance closing costs (appraisal, title search, etc.)...... STEP 5. Total months needed to recoup your costs.... ..... .. Step 4 result Step 3 result STEP 6. Total months you plan to live in your Type here to search