Is it time to Refinance your Current Mortgage?
There are many factors to consider when deciding if it may be the right time to refinance. How long do you plan to stay in your home? What are your financial goals? Do you know your credit score? Do you need extra cash for other expenses? Are the rates lower than when you purchased your home?
Our team of experienced mortgage loan originators will assess your entire financial situation and help you determine which option best fits your financial goals.
Why Should you Consider Refinancing?
There is a wide variety of reasons for refinancing your home loan.
- Shorten your loan term and/or get a lower interest putting money back in your pocket.
- Get cash to finance home improvements or upgrades to your home.
- Consolidate your debt with a lower interest rate than most credit cards.
- Improve your credit score by reducing your credit utilization.
- Obtain cash for major expenses – like paying for college, a dream vacation, or buying a car.
- Switch from an adjustable rate to a fixed rate.
Is Refinancing Worth it for You?
Most often it is said that if the current mortgage rates are lower than your rate by 1% or more, you should refinance. But that is not always true. There are many things to take into consideration like closing costs associated with refinancing such as appraisal, origination, credit check, title fees, etc. that average 2% to 5% of the loan amount.
The equity you have in your home will determine if you need mortgage insurance. You also need to consider if there is a penalty for paying off your loan early since that is essentially what you are doing. You are paying off your existing loan by taking on a new loan. No need to try and figure this out on your own! Call us today and we will connect you with an experienced loan originator who will conduct a complimentary mortgage review to determine if refinancing is right for you.