It just may be the perfect time to refinance your mortgage. Interest rates are extremely low and many home values are at an all-time high.
Refinancing your mortgage may have many benefits, like lowering your monthly payment, reducing the amount of interest paid over the life of the loan, and having the ability to pull equity out of your home. It can also be an opportunity to drop PMI (private mortgage insurance) if you didn’t put 20% down when you bought your home.
We find that many borrowers are looking for smaller monthly payments by lowering their interest rates. Others are looking to shorten the term of their mortgages so they can pay off their loans faster. Some want to take advantage of their growing equity for home improvements, which is a great option for homeowners who plan on staying put. When the cost of borrowing money is so low, it might be a terrific time to start that renovation you’ve been dreaming about. Here’s a simple refinancing calculator to get you started!
But, before you decide to refinance, it is essential to review the numbers with a trusted mortgage advisor (you’ll want to make sure your plan gets you closer to your long-term goals). It is also important to consider the cost of refinancing, since you want to make sure the amount you’d be saving offsets the closing costs of a new loan.
The unique combination of low interest rates and increased home values means it might be an excellent time for you to refinance your mortgage. We encourage you to consult with a mortgage professional to see if now is a good time for you to refinance. Feel free to reach out to us if you have any questions—we’re always willing to help!