There are many factors when considering refinancing your mortgage. How much longer do you plan on living there, what is your current interest rate and payment, how much will it cost you to refinance are a few questions you will want to answer.
A lower monthly payment is a great reason to refinance, but not the only reason. Lowering your interest rate is a long term benefit that can save tens of thousands of dollars over the life of your loan. A few other reasons why refinancing might be right for you:
1. You want to get rid of your Private Mortgage Insurance
2. You want to go from a 30-year loan to a 15-year loan
3. You want to take advantage of a Cash-Out refinance
4. You want to take someone off of title
The best way to see if refinancing makes sense is to talk with a professional. But who that professional is can make a huge difference. A study showed that 60% of those who refinanced did so at the wrong rate. It’s not always the lowest rate that is the best option. You want to choose the rate that provides the lowest over costs in the short and long term.
Get Mortgage Ready can help you decide if now is the right time and if so, what to ask lenders when you start shopping around.
The overall process is much simpler than when you bought the home so don’t worry about last minute issues. If you want guidance, give us a call at 214-692-5300.