When Should You Refinance Your Home?

Mortgage interest rates are at near-record lows. If you think you may want to refinance your home, now is a good time to at least look at your options.

You might want to refinance for one of several reasons. The first is to lower your monthly housing payment. The second could be to pull cash out of your home. Last, you may want to change the type of mortgage you have.

Moving from an FHA loan to a conventional loan could lower or eliminate your mortgage insurance premium, thereby saving you money each month. You may also want to consider switching from a 30-year mortgage to a 15-year term. With this option, your monthly payment could actually increase, but looking at the big picture, your interest savings over the life of the loan could make the move worth it.

The HARP program, which allowed refinance transactions for borrowers with little or no equity, ended at the end of 2018. However, you still have options. The good news is that both Fannie Mae and Freddie Mac have programs that can address some of the concerns that HARP loans addressed.

Another important point to keep in mind is that, unlike with purchase transactions, you can finance your closing costs in the course of a refinance transaction.

Do these options sound appealing? Are you wondering whether your home’s value would qualify your mortgage for a refinance?

Contact our office with any questions. We can discuss your options to see whether you could start saving money by refinancing your home.