When does it pay to refinance my mortgage?
Answers | 5
There are a number of factors to consider when refinancing your loan. If you are currently paying any type of mortgage insurance and you think your property value may have gone up, it could be worth a look. Also, if your interest rate is roughly 1% higher than current rates, it could be worth a look as well. Each situation will be unique and the best way to decide would be to discuss your specific situation with a mortgage originator. I'd be happy to discuss with you over the phone, and there's no cost for us to run the numbers and calculate your potential savings.
You will need to be a little more specific to get any detailed advice here. However, the benefits of the loan will need to outweigh the costs associated with the new loan. Determine what your goals are for the home and your mortgage; discuss these with a licensed loan originator. He/she will determine what loan products or strategies can help you achieve home finance goals.
Keep in mind that the cash savings is usually only part of the savings. In lowering your rate, you may also increase the amount going to principal. I say "may" because this depends on how far into your amortization you are, whether your principal is higher or lower than your original loan (you might be doing a cash out refi) and whether your current/new loan is amortizing or not. (Interest only deals are rare these days but sometimes are available / sensible.