Is It the Right Time to Refinance?
You see interest rates changing and begin to think about refinancing your home. Interest rates, however aren’t the only factor to consider.
Refinancing replaces your original mortgage with a new loan. Most homeowners refinance to lower the interest rate or shorten the term of their mortgage.
Before you go through the refinancing process, you need to have an idea of the overall costs and how long it will take you to recoup those costs. Using the calculator below, you can estimate your new mortgage timeline with figures from your current mortgage, the terms of your new loan and anticipated closing costs. Closing costs can run a few thousand with lender and third-party fees and other costs such as an origination fee, appraisal fee and closing costs.
Depending on the available equity in your home, refinancing could be worth your time.
If you’ve run the numbers and are ready to refinance, it might be worthwhile to work with your current mortgage lender. They will have your financial information available already and save you time in the process.
A cash-out refinance is another option for homeowners who’ve owned their home for many years. Using the equity in your home, you can get money for a renovation or to pay down other high-interest debt.
Is a cash-out refinance an option for you? Contact your Mortgage Banker today.