Is Refinancing Right For You?
Refinancing your mortgage can be a smart financial move but while there are many benefits, it isn’t right for everyone. It’s important to consider the timing, the costs involved, and other key factors before moving forward.
In this article, we’ll explore refinancing a home loan so you can decide if it makes sense for you.
What is Mortgage Refinancing?
Simply put, refinancing means replacing your current home loan with a new one. Depending on the amount of equity in your house and the specific refinance solution, you may be able to lower the duration of the loan to pay off your house faster, and/or reduce the amount of interest you pay over the life of your loan.
Refinance Breakeven Calculator
Analyze the cost of a mortgage refinance to see when you'll break even and the savings begin.When to Refinance Your Mortgage
A great time to consider refinancing is when interest rates fall or your credit score improves, which could help you qualify for a better rate and lower your monthly payments. It may also be smart to refinance so you can switch from an adjustable-rate to a conventional fixed-rate mortgage option with more predictable monthly payments. Or rather than sticking with a traditional 30-year mortgage, you might refinance to shorten the term so you can pay off your loan in less time.
If you want to consolidate your debt or finance a home improvement project, a cash out refinance could let you tap into your home’s equity. With this type of refinancing, you apply for a loan that’s larger than your current mortgage and receive the difference back as cash.
Should You Refinance?
As with anything in life, it’s important to weigh the costs. Refinancing typically comes with fees and closing costs, and it may take time to break even on those expenses. You’ll also need to take into consideration things like how long you’ve been in your home, how long you plan to stay in your home, and the goals of your refinance.
At Carter Bank, our team of experienced Mortgage Loan Originators are able to walk you through the process and to determine if refinancing is right for you. The easiest way to get started is to contact one of our Mortgage Loan Originators directly for a free, no obligation assessment. You may also download our Mortgage2Go app in both the Apple and Google Play Stores to inquire, submit documents and follow the progress of your loan transaction if you decide to proceed with a new loan.