When does it makes sense to refinance?

Asked by c_horton1007

2 Answers

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Answered by Matthew Marshall, Mortgage Broker in Elkhorn, NE
This is kind of a loaded question, but can be answered with some basic rules of thumb.

1. Assuming you are planning to stay in the house. If you intend on moving shortly, it rarely makes sense to refinance.

2. If you can reduce your current rate by 1% or or shorten the term (30 years to 15 years), without significant drain on your budget.

3. If credit scores have significantly increased from the last time a mortgage was done.

I would get some basic numbers run, figure out the break even point and then you can decide if it makes sense.

Thanks

Matt | 08.25.16 @ 13:51
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$commenter.renderDisplayableName() — {comment} | 12.10.16 @ 15:00
Answered by MoneyTips Writing Staff, Financial Adviser in Los Angeles, CA
Matthew has mentioned several important factors to consider. We also have a number of MoneyTips articles that can give you more in-depth insight into when you should refinance. Here are links to a few of them:
Refinance 101
Three Things You Should Consider Before You Refinance
How to Refinance With a Low Appraisal
Cash-Out Refinances Skyrocket | 09.01.16 @ 08:48
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$commenter.renderDisplayableName() — {comment} | 12.10.16 @ 15:00
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