Should You Consider Refinancing?
Has it been one year or more since you bought your home or refinanced? If so, there's a good chance your mortgage rate is more than one percentage point above current rates, which is usually a sign that it's time to refinance. You many benefit from a refinance even if your new rate is less than a full point lower, depending on how long you plan to stay in your home and recoup closing costs. Closing costs for refinancing typically will be 1-2% of your new loan amount, so knowing when you plan to sell your home is essential.
You could also choose a no-cost refinance in which your mortgage lender pays all of the closing fees, but that would require you to pay a higher interest rate.
Wondering if refinancing is best for you? If so, find out your existing balance and current mortgage rate, then call, email or text me. I will let you know what your new rate would be and help you calculate the break-even point.
Refinancing might be right for you if...
Your rate is 4.375 or higher and you plan to stay in your house for a few more years.
If you currently have a VA or FHA loan, you can do a ‘streamline’ refinance without a new appraisal and an easier process than usual.
You switch from a 15-year to a 30-year. The payment may be a bit higher, but
the savings will be huge!
Pay off other debts such as credit and car payments; this could really help your monthly cash flow and lower the wealth-sucking effect of the high rates you are paying on credit or car loans.
You're looking to drop PMI off your loan.