Top 4 Reasons To Refinance Now
Let us help answer the question, should I refinance my home now or wait? There are many reasons why homeowners refinance. The most common motivation for refinancing is the interest-rate environment.
The average mortgage rate for a 15-year is 2.438% and 3.238% for a 30-year fixed as of March 29. As you can see rates remain incredibly low by historical standards. And according to Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, “the expectation is for rates to stay low for the rest of the year.”
Depending on the rate you’re currently paying you may be able to save significantly. Rates are much lower than 15 months ago when we were at 5%. Use our mortgage payoff calculator to run your numbers and see what your monthly payment would be on a 15-year loan and a 30-year loan.
Is Refinancing Right For Your Situation?
Refinancing a mortgage is a big step, as big as applying for a mortgage in the first place. It also takes just as much time and effort, so it’s a decision you shouldn’t rush. The time to refinance is when you want to make a less than desirable mortgage better with a new interest rate. Do a break even analysis (run the numbers on whether you’ll be in your home long enough to benefit from the savings that a lower interest rate and payment could bring) to see if refinancing is something worth doing in your situation.
Next work out how long it’ll take you to make up the closing costs you’ll have to pay for your refinanced mortgage. Working with a reputable mortgage company like ICD Mortgage, can assist you in cost savings.
In general, refinancing makes the most sense if you are looking to:
- Obtain a lower interest rate
- Shorten the term of your mortgage
- Convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vise versa
- Tap into home equity to raise funds to deal with a financial emergency, finance a large purchase, or consolidate debt
In conclusion refinancing now can be a great financial move. The savings you could make from doing it for the reasons outlined above could be used to tackle the important stuff, like paying down debt, taking control of your monthly bills, being closer to owning your home outright, or saving for retirement. Once you have identified your goal, it’s time to shop for a refinance lender, apply and close on your new mortgage, the same way you did when you bought the home.