When Should You Refinance?

With the federal rates going down, this seems the hot question is “should I refinance”.  Even though I am not a mortgage lender, but a real estate agent, I still get clients asking and wanting my opinion so here it is….

One…How long are you planning on living in your home?  Don’t forget when you refinance there is usually a cost, even if it is rolled into the loan you still end up paying it.  Make sure that you are going to be in your home long enough to cover these cost.

Two…Is the lender saying they will cover the cost of refinancing?  This could make your interest rate a little higher.  It might be cheaper for YOU to pay the cost and take the lower interest rate.  Take the time to do the math.

 Three…Is this really as low as it will go?  If you know this answer for sure CALL ME!  It is a gamble some are willing to take, and wait to see if they keep droping.  I would ask my local mortgage lender their opinion.

Four…Has your credit situation improved or taken a turn for the worse.  If your credit has improved then so should your interest rate. 

Five…If your interest rate is above six percent, you definitely want to explore your options.  This could be huge payoffs down the road.

 If you have any questions or concerns about refinancing and your loans please contact your local loan officer.