Should I Refinance My Mortgage Now?

If you are considering refinancing your home, now is a great time to at least look into your options. There are a few reasons why.

The first is that mortgage interest rates, as of fall 2019, are still at near-historic lows. If the reason for refinancing your home is to lower either your interest rate or your monthly payment, the market is favorable for this right now.

Another reason to look into refinancing at this time is that home prices have continued to increase in many parts of the country.

What this means for you, as an existing homeowner, is that you’ll be in a better equity position than you may have been a year or two ago.

Your equity is the difference between what you owe on your home and what it’s now worth.

If you’re looking to take money out of the property to pay for college for the kids, home improvements, or other expenses, more equity will allow you to take out more money.

Even if you aren’t looking to take out any cash from the property, more equity means better terms on the mortgage that you take out.

As far as what this will cost you, many refinance transactions will allow you to incorporate the costs of the new loan directly into the loan, meaning you’ll need little to no money at closing.

At times, lenders will waive documents that are normally required, such as appraisals. Since these can cost hundreds of dollars, this waiver will lower your overall cost of the transaction significantly.

With these benefits in mind, it’s likely that refinancing your mortgage could put you in a better position financially.

If you are thinking about what a refinance could do for you or are interested in more details about how the process works, please give me a call. I can go over your options and help you determine if refinancing makes sense for you.