When Is The Right Time To Refinance My Mortgage?

Refinancing your home loan could save you a lot of money. But, depending on your situation, the cost to refinance could mean you end up spending more in the long run.

So when should you refinance your house?

That depends on several factors. The best thing you can do is run the numbers and do your homework to make sure it’s the best financial decision for you.

What Does it Mean to Refinance Your Mortgage?

Refinancing is a lot like buying your own home…again. It means you pay off the existing mortgage loan with a new mortgage loan to replace the original loan.

When Might it Make Sense to Refinance?

When mortgage rates go down

When mortgage rates fall below the current interest rate on your mortgage loan, you might consider refinancing to see if you can save money.

When you lower your interest rate, you can reduce your monthly payment.

Or you can refinance with a shorter term loan. When you refinance with a shorter term, say a 15-year mortgage rather than a 30-year mortgage, your payment won’t be as low, but you save more on interest long term. And pay off your mortgage faster.