When is it best to refinance?
Get together with your mortgage advisor to discuss your situation in greater detail.
Next, my crystal ball can't tell you the "best" way for you. I can give you some insight into some reasons for refinancing:
1) Lower Interest Rate - One of the best reasons to refinance is to lower the interest rate on your existing loan.
2) Shortening the Loan's Term - This can build up your equity sooner.
3) Converting Between Adjustable-Rate and Fixed-Rate Mortgages - You may be able to save on interest payments.
4) Tapping Equity and Consolidating Debt - Keep more equity than debt.
The Bottom Line
Refinancing can be a great financial move if it reduces your mortgage payment, shortens the term of your loan or helps you build equity more quickly. When used responsibly, it can also be a valuable tool in getting your debt under control. Before you refinance take a careful look at your financial situation, and ask yourself: How long do I plan to continue living in the house? How much money will I save by refinancing? Focus on things like the payback period, increasing your household's net worth, and the true cost of financing.
Feel free to contact us directly for more information. We have many educational resources to help you keep more $$ in your owner's equity pocket. No obligation.
It's not what you make, it's what you keep that determines your lifestyle. | 04.18.16 @ 00:04
Rex, thanks for the question. The obvious answer is when rates are the lowest, but it's really up to you and what your situation is. If there are options that make sense and you want / need to refinance, then it's a good time. | 04.19.16 @ 19:20