When is the Right Time to Refinance?

How do you know if its the right time for you to refinance? Here are a few factors to consider.

• Interest Rates Have Dropped – If mortgage rates are lower than when you originally took out your loan, refinancing could save you thousands in interest over time. An experienced loan officer will guide you on how much of a drop will save you enough money.
• You Want a Lower Monthly Payment – A refinance can help reduce your mortgage payment by securing a lower rate orextending your loan term.
• You Want to Pay Off Your Mortgage Sooner – Switching from a 30-year loan to a 15-year loan can help you build equity faster and reduce interest costs.
• Your Credit Score Has Improved – If your credit has significantly improved since you took out your loan, you may now qualify for better terms and a lower interest rate.
• You Need to Access Home Equity – A cash-out refinance allows you to tap into your home's equity to pay for home improvements, consolidate debt, or cover major expenses.
• You Have an Adjustable-Rate Mortgage (ARM) – If you have an ARM and want more stability, refinancing into a fixed-rate loan can protect you from future rate increases.

When Refinancing Might Not Make Sense:

While refinancing can offer big benefits, it’s not always the best choice for everyone. You may want to hold off if:

• You plan to sell your home soon – If you’re moving within a few years, you may not recoup the closing costs. Lets go through it and see if it makes sense for you.
• You already have a low interest rate – If rates haven’t dropped significantly, the savings may not outweigh the costs.
• You can’t cover the closing costs – Even though we don’t charge junk fees, refinancing still comes with title fees and re-establishing escrow accounts, so it’s important to factor in these costs.