Is Refinancing Right For Me?

Now that mortgage rates are at historic lows, refinancing is more popular than ever.

Homeowners everywhere are wondering, “Should I refinance, too?” The answer isn’t always cut and dry. Whether or not you should refinance depends on your particular situation.

Here are some examples of when refinancing is a good idea.

When Refinancing Is a Good Idea

Situation 1: You currently have a mortgage with an interest rate that is significantly higher than the current going rate. For example, if you’re currently paying 6.5% for your mortgage and you can qualify for a refinance at 5.5%, you can save a good chuck of change each month

Situation 2: You have an adjustable rate mortgage (ARM) you think will reset to a higher rate than you can currently lock in. Getting a fixed rate mortgage or even another ARM with more favorable terms can provide you with better peace of mind.

Situation 3: If you have built up equity in your home and you need money for a large expense like a home improvement project, a “cash-out” refinance might be a good idea. Investing in your home now is smart because labor costs are down.

Use our Mortgage Refinance Calculator to see if you could save significant money.