As mortgage rates fall, homeowners begin to wonder if now is possibly a good time to refinance. Have you been Googling: refinance home mortgage? You’re definitely not the only one. But how do you know if refinancing your loan is a good idea? Let’s review some key points that can help you make up your mind.
Interest Rates
Low interest rates are enough to cause any homeowner to question if it’s time to lock in a better interest rate. After all, who doesn’t want to save thousands of dollars in interest fees?
The most obvious time to refinance a home mortgage is when it will save you money. It would surely be worthwhile if refinancing allowed you to pay off your mortgage sooner, or helped you build equity. Those are some of the top reasons to act now. In general, if refinancing your mortgage can check those three things off your list, then it’s a great idea to move forward.
Quick Cash
Of course, there are times when you may also need some quick cash. One smart way to use the money from cash-out refinancing is to pay off high-interest debts, or remodel your home. Home improvement projects raise the value of your property, which is especially beneficial if you ever plan on putting your house on the market. Carefully consider your reasons for refinancing your home mortgage and go over the numbers with a professional.
What Percentage is Worth Refinancing For?
So, at what percentage is it worth considering all that paperwork? The good news is that even if you’re only able to lower your interest rate by one-half to three-quarters of a percentage point, it can make a big difference in your monthly payments. Ask yourself these questions:
- Do you plan to move within the next two years?
- Will the savings justify the expense of refinancing?
- What’s your current credit score?
- What are your financial goals?
Refinance Home Mortgage
A professional can help you calculate your potential mortgage refinancing savings. If you’re ready to talk about your home loan options, contact Karen Douglas at The Mortgage Genie because you need a pro on your side. Call Karen today at (925) 648-0981. Or, can also check out her client testimonials by clicking here.