The rule of thumb is and always has been, that if the interest savings received from refinancing outweighs the costs-then refinancing is certainly something to consider. When figuring these calculations, be sure to reflect on the future and how many years you plan to stay in your home, as the costs could outweigh the savings if you plan to move in the near future.

An Adjustable Rate Mortgage (ARM) is a great product to consider when exploring refinancing options. ARM programs have the potential to save a lot in interest while paying down your mortgage more quickly. While ARM programs are great products, it is again important to consider how long you are planning on being in your home when considering a refinance of your mortgage loan. Generally, if you plan on being in your home for 5 to 10 years, a 5/1 or 10/1 ARM program is a great alternative to the traditional 15, 20, or 30 year fixed mortgage loan.

To illustrate the savings an ARM product can offer, consider the current rates on 30 year conventional products which are as low as 3.75%. Conversely, the 5/1 ARM is currently as low as 2.875%, a difference of .875%! This lower rate equates into an estimated amount of $72.33 in savings per month based off of a median $150,000.00 loan amount. The $72.33 in savings could be applied as additional money towards the principal balance on your loan every month which would then amount to a total savings of $4,339.80 over a 5 year period.

If you are like many people who live from paycheck to paycheck, (depending on your current loan terms) a refinance will typically allow you to save between $100 and $200 per month in mortgage payments. These excess funds translate into disposable income that can be spent on groceries, gasoline, or even a night out with or without your children-it's up to you! All of these benefits combined with the myriad of options available show why a free financial checkup and a refinance just may be worth your time.

Call us today for your personalized review, and one of our mortgage professionals will be happy to provide you with the many options available today that could potentially save your family money.

About the author: Tonya Froerer

Tonya Froerer is an Assistant Vice President of Goldenwest Federal Credit Union. She oversees three of Goldenwest's top producing offices (Roy, Farr West, and the Corporate Branch), as well as managing the Corporate office. Tonya is also one of the top producing mortgage loan officers within the credit union. She has been in the Financial Services and Mortgage industry for over 14 years and thoroughly enjoys helping Goldenwest members obtain the American dream. Tonya specializes in Construction loans, FHA/VA products, HUD homes, Conventional, Reverse Mortgage financing and more. Outside of the office, she is a proud mother of 2 active little men, which keep her on her toes. Tonya is also very active herself, enjoying marathon running, mountain biking and soccer mom duties. She and her husband, Ryan, reside locally in Ogden, Utah.