Does Refinancing Make Sense For You?

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Does Refinancing Make Sense For You?

Refinancing can be worthwhile, but it does not make good financial sense for everyone. If your current mortgage has an interest rate that is higher than prevailing rates you might want to consider refinancing. If you refinance with a lower interest rate, you'll pay less each month - even if your new mortgage is for the same amount as your current one.

How to Determine If You Should Refinance?

Traditionally, the decision on whether or not to refinance has meant balancing the savings of a lower monthly payment against the costs of refinancing. But in recent years, lenders have introduced "no cost" and low-cost refinancing packages that minimize or completely eliminate the out-of-pocket expenses of refinancing.

How long you expect to stay in your home is also a factor to consider. If you'll be moving in a few years, the month-to-month savings may never add up to the costs that are involved in a refinancing.

Is It Time to Refinance? With interest rates today being at their lowest in the past year, you probably have wondered whether or not you should refinance your existing home mortgage. This guide can help you determine how much you will save by refinancing.

Today, as little as a 1/2% interest rate decrease through refinancing can save you thousands of dollars if executed properly and in accordance with your specific financing needs. A variety of loan terms, no-point rate options and lower closing cost loans have greatly decreased the rate difference needed to make refinancing profitable to you.

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