May 23, 2017

Refinance

Should I refinance my mortgage? That’s a question I get asked a lot. Used to be the guidelines was if you could lower your rate by 1 percentage point it was generally worth refinancing.  There are several reasons to refinance your home…

  • Reduce your monthly payment and overall monthly costs by lowering your interest rate
  • Reduce the term or the length of your loan which can save you thousands of dollars in interest
  • Gives you a way to consolidate your debt with one low monthly payment
  • Move out of an Adjustable Rate Mortgage into a stable fixed rate loan
  • Or if you know you are going to move in a few years, think about refinancing into a super low adjustable rate mortgage. You will pay thousands less in interest and have the very lowest payment.
All of the above are very good reasons to think about refinancing, but make sure you consider all the issues.
  • Just like when you closed your first mortgage on your home, a refinance requires an application, credit check, new appraisal (except for certain loans like an FHA Streamline Refinance and the New HARP Refinance Program).
  • You should ask yourself a few questions to help you determine if refinancing is right for you. Feel free to call one of our advisors. They will give you a no obligation quote and you can see for yourself if refinancing makes sense in your specific situation.
There are three questions you need to ask:
  • How much can I lower my current monthly payment?
  • How long do I plan to stay in the house after I refinance?
  • How much will I pay in refinancing costs?

Use the Refinance Calculator below as a guide to help you look at the breakeven point. Or give us a call and we can help walk you through the process.